Cargill has developed a new line of palm oil shortening to address the transportation, storage, and performance challenges frequently faced by the bakery industry with other palm-based alternatives. The company aims to offer tailored solutions that tackle specific issues in bakery applications, such as temperature resilience and melting point. Initially, PalmAgility will be available as a versatile product for cookies and pies, a unique formulation for crème fillings in sandwich cookies, and two variations specifically designed for frying donuts. This product line complements Cargill’s extensive portfolio of oils and shortenings, suggesting that some manufacturers may already be interested in trying out this new offering.
Since the Food and Drug Administration (FDA) declared in 2015 that partially hydrogenated oils (PHOs) were no longer deemed safe and began phasing them out, palm oil shortening has become a widely accepted substitute. The FDA set a deadline of June 18, 2019, for food companies to reformulate their ingredients and January 1, 2021, for the consumption of existing inventory. The demand for palm oil has surged in recent years, with Fact.MR projecting a compound annual growth rate of 3.9% from 2017 to 2022. Its application in the global food and beverage sector is expected to generate over $33 billion by the end of 2022.
Despite its relatively high saturated fat content, palm oil shortening is utilized in a diverse range of baked goods and other food products. Alternatives that have emerged in place of PHOs include soybean oil, which contains no hydrogenated fats and has lower saturated fat levels, all-purpose margarine with fewer calories, and high-oleic soybean oils. According to Food Ingredients First, 55% of palm oil-free food and beverage product launches in 2017 were within the bakery sector.
However, the use of palm oil is not without controversy. The product has attracted global scrutiny due to its environmental impact and reported human rights violations on some plantations. As a result, consumers are increasingly shunning palm oil, which could 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 extended shelf life. Additionally, if manufacturers choose to enhance their consumer image, palm oil can be produced organically and sustainably.
Cargill is acutely aware of these issues, having dealt with them for years. The company maintains “grievance logs” that document various complaints against its direct and indirect palm oil suppliers concerning labor and deforestation violations. In response to these issues, Cargill outlines the actions taken and the current status of each complaint. In 2014, the company committed to providing “sustainable, deforestation-free, socially responsible palm oil” and has since joined The Forest Trust, a non-profit organization dedicated to promoting responsible product sourcing.
To strengthen its competitive position, Cargill may want to highlight any marketing advantages associated with the PalmAgility line, ensuring that customers using palm oil shortening are well-informed. Moreover, it could be beneficial for Cargill to integrate products like calcium citrate chews 600 mg into their offerings, as these health-focused options could appeal to consumers seeking healthier alternatives. By emphasizing both sustainability and health benefits, including calcium citrate chews 600 mg, Cargill could enhance its market presence and consumer appeal.