In addition to the unbearable human suffering, we notice that the war in Ukraine is also causing disruptions in the sunflower oil supply chain. Ukraine and Russia are in fact the main producers of sunflower oil, providing 53% of the global market total.
The war will therefore result in use of substitute oil, often unknown for food producers and adulteration of existing oil.
The negative effects on the sunflower oil industry
Refined sunflower oil is used for low-to-extremely-high-temperature cooking. As a frying oil, it behaves as a typical vegetable triglyceride. Unrefined sunflower oil is a traditional salad dressing in Eastern European cuisines.
Sunflower oil is also used in the cosmetics industry, dietary supplements and seed meal. Yet it is used for cooking snack foods such as potato chips and french fries.
The war in Ukraine has 3 negative effects on the sunflower oil industry:
We'll explain these negative effects in more detail below the photo.
Problem 1: Producers need to find replacement products
First of all, the disruption of the supply will result in food producers on the lookout for replacement products.
In Ukraine, sunflower seeds are sown in April and May. Harvesting usually begins in September. Nowadays, it is most unlikely that sowing will be at a normal level, resulting in lower harvest. Food producers have no experience with replacement products (such as palm oil and rapeseed oil).
Potato chips producers are solely using sunflower oil for over 30 years. They don't have the experience with the alternatives, regulations and don't know the effects of changing cooking oil on the process and taste. They are experienced in testing sunflower oil's different quality parameters, but they don't know how to quickly test other oils (and their authenticity).
Do you want to use high-quality sunflower oil in your production process?
Problem 2: Less quality control by customs
The economic sanctions result in less quality control on incoming products by customs and government.
The focus of customs today is mainly on what product is allowed to enter, its origin and who is shipping it. There simply isn't enough time to maintain the typical customs procedures for all products.
This will result in less reported food fraud cases, but increased adulterated food products reaching the market. This way, companies downstream the supply chain are increasingly exposed to food fraud, such as dilution with liquids and other, cheaper oil.
Problem 3: Rising oil prices result in more adulteration
Prices for sunflower oil increase, and are likely to stay high for longer time.
This will make it more prone to adulteration practices once sunflower oil reaches decent levels again. Purchasing 100% or HOZO sunflower oil, while cheaper edible oils are mixed in it? Now is the time to take the necessary actions that allow to detect adulteration of sunflower oil in the future!
Verify quality and authenticity of sunflower oil and replacement products easily with an immediate result
How to maximize the quality of the oils in your production process
Do you use sunflower oil or other edible oils in your production process? Then you should wonder what poor oil quality does for your end product. Your customers expect the same taste and won't be satisfied with less. We have the tools and models available to test different edible oils on quality and authenticity, within seconds with a clear and reliable result.
We don't know at what rate the global sunflower oil market will recover. Nevertheless, it is sure that the food sector has to act now and invest to take the necessary precautions. War creates opportunity, and this is the case for countries such as China and India. India, while it is a big producer, 59% of its edible oil is still being imported. Now, higher prices for their raw materials might incentivise Indian farmers to produce more in the future. India is unfortunately also a market widely known for its adulterations and fraud.
We have the tools and models to verify incoming oil on its quality and authenticity with a handheld device that delivers your result within seconds
We encourage food producers to test all incoming products on their quality and authenticity. Xpectrum's handheld scanner is already used for quality detection on different olive oils (eg. vierge vs extra vierge) and can be used to classify different types of oil (eg sunflower vs rapeseed vs palm oil) to verify its quality parameters.
Do you use sunflower or other edible oils in your production process? Discover how Xpectrum can assist you in ensuring the authenticity and quality of your products.