The product is engineered for easy
processing, mimicking the melting point, volume, plasticity, lamination, dairy butter”
rainfall and pestilence in West Africa can all dramatically affect supply. Human and political influences such as biofuel mandates, or export taxes or pirates, can disrupt already long shipping times. Even minor ingredients such as processing aids or key engineering parts now have much longer lead times,” he adds.
EU Deforestation or UK Forest Risk Commodities legislation.
Palm oil comes mainly from Malaysia and Indonesia, shea and cocoa butter from Western Africa, coconut from the Philippines, soy oil from Brazil, rapeseed oil from UK & EU, sunflower oil from France or Eastern Europe. “Supply is dependent on weather conditions, crop yields, harvesting and shipping from every region of the world of the crude and semi-refined oils before even reaching the refining factories,” explains Dr Kaly Chatakondu Commercial Director, AAK International. “El Nino weather effects in SE Asia, hurricanes in the Philippines, heavy
“Consistent supply and resilience in the supply chain for Palm oil thus requires that every oil fraction is sourced only through pre-approved channels, even if this restricts the options and the number of mills and plantations that meet the necessary criteria. Shea kernels for shea oil, on the other hand, are collected manually from the ground in often dangerous and unstable regions such as in Burkina Faso, and are subject to both crop and human factors such as terrorism,” explains Kaly. “In this case, supply needs to be established from multiple geographical regions and countries. Coconut, which is harvested exclusively by small holders, needs a tightly controlled and audited supply chain from limited geo- locations to ensure both traceability and contaminant control.”
AAK has been adapting its supply chain strategy throughout these crises. The company has multiple sites across Europe, each designed to store, refine, fractionate, blend and crystallise oils, but historically each site has specialised in certain oil fractions and processes. Kaly says: “Oils, oil fractions and blends are stored in multiple, large, heated tanks at each site. The number of tanks employed and whether they are single tanks, or split tanks that can store different oils in the same tank, is therefore a key factor.”
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