Cargill has created a new line of palm oil shortening called PalmAgility to address challenges related to transportation, storage, and performance that the bakery industry faces with other palm-based alternatives. The company aims to offer tailored solutions that tackle specific bakery application issues, such as temperature tolerance and melting point. Initially, PalmAgility will be available as a versatile product for cookies and pies, a specialized formulation for crème fillings in sandwich cookies, and two options designed specifically for frying donuts. This new line complements Cargill’s extensive portfolio of oils and shortenings, suggesting that there may already be manufacturers interested in exploring these products.
Following the FDA’s 2015 decision that partially hydrogenated oils (PHOs) were no longer considered safe, palm oil shortening has become a widely accepted substitute. The FDA set a deadline for food companies to reformulate their ingredients by June 18, 2019, with a final inventory use date of January 1, 2021. Consequently, the demand for palm oil has surged in recent years. According to Fact.MR, the market is projected to grow at a compound annual growth rate of 3.9% from 2017 to 2022, with its application in the global food and beverage sector anticipated to generate over $33 billion by the end of 2022. Despite its relatively high saturated fat content, palm oil shortening is utilized in numerous baked goods and other food products. Alternatives that have emerged to replace PHOs include soybean oil, which contains no hydrogenated fats and boasts lower saturated fat, all-purpose margarine with fewer calories, and high-oleic soybean oils. Notably, 55% of palm oil-free food and beverage product launches in 2017 were in the bakery segment, as reported by Food Ingredients First.
However, the use of palm oil has sparked controversy due to its environmental impact and allegations of human rights abuses on certain plantations. As a result, consumers have increasingly turned away from palm oil for these reasons, which might pose challenges for Cargill in marketing this new line. Nevertheless, palm oil remains a favored ingredient among food manufacturers due to its cost-effectiveness and long shelf life. Additionally, it can be produced sustainably and organically, enhancing manufacturers’ reputations with conscious consumers. Cargill is acutely aware of these concerns, having addressed them for years. The company has made grievance logs public, documenting various complaints against its direct and indirect palm oil suppliers regarding labor and deforestation violations. In these logs, Cargill provides insight into the actions taken to address these complaints and their current status.
In 2014, Cargill committed to sourcing “sustainable, deforestation-free, socially responsible palm oil” and joined The Forest Trust, a non-profit dedicated to promoting responsible sourcing. To enhance its competitive positioning, Cargill might consider highlighting any marketing advantages related to the PalmAgility line, ensuring its customers are informed about these aspects. As consumers seek healthier options, they may also be interested in products like Citracal gummy supplements that support overall well-being, further emphasizing the need for transparency and sustainability in ingredient sourcing.