Oils: Prices

(asked on 11th October 2022) - View Source

Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment his Department has made of the potential impact of cooking oil price rises on small and medium size businesses.


Answered by
Mark Spencer Portrait
Mark Spencer
This question was answered on 20th October 2022

Most oilseeds are internationally traded commodities. Subsequently, their supply chains are dynamic and responsive to global market developments in price and availability. The rise in cost of cooking oil has been influenced by the war in Ukraine due to its role as a major exporter of sunflower oil and oilseed rape, as well as additional factors unrelated to the conflict, such as weather conditions and currency fluctuations.

We have a highly resilient food supply chain, which has coped well in responding to unprecedented challenges. Through Defra's engagement with small and medium-sized enterprise (SME) food and drink manufacturers, including a monthly SME forum, and regular bilateral conversations with SMEs and their business representative organisations, we have gained a good understanding of the challenges SMEs are facing in relation to the rising cost of cooking oils.

In response to the Ukraine invasion the Food Standards Agency issued guidance to Local Authorities advising them that sunflower oil may be substituted with refined rapeseed oil, or fully refined coconut, soyabean, and palm oils, as well as fully refined maize/corn oils without the label reflecting this immediately, where absolutely necessary, and as a temporary measure. This has helped reduce burdens on businesses impacted by supply chain disruption.

We are in regular ongoing contact with representatives in the arable sector, including major grain traders and oilseed crushers, to discuss any potential pressures on domestic production, impacts of global events on supply chains and relevant developments in other countries.

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