FAQ

FAQ

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Q: Does IOI Loders Croklaan follow a code of business principles?

IOI Loders Croklaan operates according to a code of business principles that stipulate high standards of integrity in all our dealings, including with our customers, employees, competitors, and the environment.

Q: Is palm oil production an environmentally friendly process?

Yes. IOI plantations are managed in such a way as to maximize long-term sustainability at every step of production. Our methods include a zero-burning policy, special planting techniques, and natural production processes, which minimize pollution, reduce the use of fossil fuels and artificial fertilizers, and safeguard the environment. We also follow sustainable social policies, designed to enhance the local economy and the lives of those who work on or near our plantations.

Q: Do IOI Loders Croklaan products carry a mark of quality?

IOI Loders Croklaan is certified by numerous international quality-control organizations, including ISO. In the summer of 2007 the AIB awarded IOI Loders Croklaan its highest score ever, a superior rating of 920. AIB assesses operations in the food processing industry by ensuring food safety and GMP compliance.

Q: Does IOI Loders Croklaan know where its palm oil originates?

IOI Loders Croklaan sources most of its raw materials directly from its parent company, IOI Corporation Berhad, whose core business is palm oil plantation management in Malaysia. With some 160,000 hectares of palm oil plantations, IOI Group preferentially supplies its factories with their raw materials needs. IOI Loders Croklaan knows exactly where its palm oil comes from.

Q: Are you able to monitor every element in the supply chain of palm oil products?

IOI Loders Croklaan, as part of IOI Group, is now part of a complete, integrated supply chain for palm oil products. This means that we can guarantee that the same high standards are applied every step of the way. Should a problem arise it can be quickly identified and solved.

Q: Do palm oil products, both on their own and also as a component of finished bakery products, have as long a shelf life (in terms of flavor and structure) as the partially hydrogenated oils they replace?

Yes. With an efficient supply chain and optimal processing, we can produce palm oil shortenings that match the performance of high-trans shortenings.

Q: What is the chance that I will have to change from palm oil to another oil in the future?

While it is impossible to predict trends with certainty, it is likely that the trend for more natural and/or organic ingredients will continue. In this case, palm oil is very well positioned. Palm oil fats are non-GMO, and many are entirely natural or are produced through mild, non-chemical processes.

Q: Which is more negatively perceived by consumers, trans or saturates? Which is therefore preferred, palm oil or hydrogenated vegetable oil?

Our consumer research suggests that both saturated fats and trans fats are very negatively perceived by consumers but also that an increase in saturates may be preferable to the presence of trans fat or hydrogenated fat. For this reason we believe that palm oil-based trans-fat-free ingredients will be preferred by consumers seeking to avoid both trans fats and hydrogenated fats. For further information on our consumer research please contact us.

Q: Why work with IOI Loders Croklaan when there are other companies that have been working in palm oil for years?

IOI Loders Croklaan has been using palm oil to provide products to customers worldwide for over 50 years. While the use of palm oil in North America is limited, our expectation is that usage will grow rapidly due to concerns over trans fats. IOI Loders Croklaan’s worldwide expertise with palm will enable North American manufacturers to switch to palm with minimal disruption to their operations.

Q: Is palm oil price competitive?

Depending on the targeted absolute level of saturated fat in the final solution, the palm-based product range will offer both lower cost and specialty items. Food manufacturers will then be able to choose between the most cost-favorable and most nutrition-label-favorable solutions.

Q: Won’t palm oil on my label negatively impact consumers’ perception of my product?

Our research suggests that palm oil as an ingredient has relatively little effect on a consumer’s decision to purchase a food product for the first time. Much more attention is given to the level of fat, saturated fat, and the presence of partially hydrogenated fat. For further information on our consumer research please contact us.

Q: Why can’t a stable trans-fat-free shortening be made with cottonseed oil instead of palm oil? They both contain palmitic acid and promote beta-prime crystals.

While cottonseed contains palmitic acid, it is too low in total saturates to be used to make a shortening without hydrogenation. Palm oil is naturally more saturated, making the hydrogenation step unnecessary. Palm oil also tends to form stable beta-prime crystals more readily than cottonseed oil. Cottonseed oil is also typically more costly than palm oil.

Q: I want to use a soybean-based solution; why should I consider using palm instead?

Soybean oil contains too little saturated fat to be functional as a shortening. It must be partially hydrogenated or combined with fully hydrogenated oils to create the correct functionality. Both approaches above use hydrogenation as a process that must be labeled. Consumers are linking hydrogenation with trans.

Q: Will palm oil products be as shelf life stable (flavor and structurally) both in themselves and in finished bakery products as the partially hydrogenated oils they replace?

With an efficient supply chain and optimal processing, palm oil-based shortenings can be produced that match the application performance of high-trans shortenings.

Q: Why would I use a zero-trans oil when I could use a reduced-trans domestic oil, as long as it is present at less than 0.5g per serving, and then keep my label palm free?

Domestic reduced-trans products would still be labeled as hydrogenated. In addition, consumer groups may criticize this approach as an attempt to hide trans fat.