Food manufacturers continue to face supply and cost challenges in securing fats and oils.

This is due in part to extreme global weather conditions, climate change and the war in Ukraine, noted Marie Shen, associate innovation specialist, Kemin. To better manage supply risks, she recommended manufacturers have backup ingredient suppliers.

“Having secondary, or even tertiary, suppliers help bakers and snack makers have options when raw material availability becomes an issue,” she explained. 

Flexible formulations and adjunctive labeling are other ways manufacturers can manage supply challenges, said John Satumba, PhD, global bakery technical lead and regional R&D director for North America, global edible oil solutions, Cargill, enabling producers to change ingredients without compromising product quality. 

“Our scientists work with customers to take advantage of these approaches, thereby providing a mitigation strategy should challenges arise,” he said. 

Sourcing high-oleic oils may be especially difficult due to limited availability and production capacity. Richard Galloway, oils consultant, United Soybean Board, noted the supply of high-oleic canola and sunflower are likely near their peak due to the natural acreage limitation of these crops. Soy has the greatest growth potential going forward as a widely grown crop, he said, but there is a lag between consumer interest and refiners having the product to supply. 

“Seed must be produced, crops must be grown and harvested crops must be processed into finished products,” he said. “This is a two-to-three-year process. Unless potential buyers test the product and express serious interest in purchasing quantities, this process cannot begin providing greater quantities.”

Mr. Galloway recommended manufacturers evaluate the oils in their products and discuss future availability of high-oleic soy with their suppliers. 

“Only then can their suppliers and the farmers that grow soybeans for those processors undertake growing the volume as needed by food manufacturers,” he said. “The willingness and eagerness on the part of both farmers and processors exist to supply as much high-oleic soybean oil as food manufacturers need, but going forward it is in the hands of the customer — food manufacturers.”

This article is an excerpt from the October 2023 issue of Baking & Snack. To read the entire feature on Fats & Oils, click here.