I’ve noticed something in the last few months. Customers really want to buy High Oleic Non-GMO Canola Oil… But they can’t get any.
That’s right. The oil that is skyrocketing in popularity is almost completely unavailable (unless you’ve already locked in a contract — in that case, lucky you!). If you are trying to buy this oil now and struggling to do so, here’s what you can do to plan a steady supply for next year (October 2015 - October 2016, after the next harvest).
Long story short, now is the time to lock in the seeds with farmers, because now is when they’re putting them in the ground. Take some action now to guarantee a steady supply chain for this oil.
First, let’s talk about why everyone wants this oil right now. Then, we’ll talk about how the supply chain works for this oil and the steps you need to take to lock down your inventory.
Why Is High Oleic Non-GMO Canola Oil So Popular?
It’s An Ideal Fry Oil
This oil is an ideal fry oil. The high oleic nature makes the oil have a fry life that’s much longer than regular canola oil (some say up to 10x the standard fry life). This means that you don’t have to toss the oil on your regular schedule. And even though it comes at a small premium, you end up paying much less in the long run because you’re using so much less oil.
It’s Non-GMO
The demand for non-gmo canola oil is skyrocketing across the board. It doesn’t matter what kind of non-gmo canola oil it is — it’s in demand. This high oleic non-gmo canola oil is also expeller pressed, so it hits three birds with one stone.
If you’re exporting this oil, you’ll need this non-gmo quality to bring it into many different countries (like all of Europe, South Korea, etc.)
How The Supply Chain Works For High Oleic Non-GMO Canola Oil
There is not, in fact, a lack of high oleic canola oil — rather there is a lack of the seed.
(… Of course, the seed needs to be available to produce the oil, so these two things are really one in the same.)
Point being, the important thing is to focus on locking down the seed when it matters, because that’s what allows you to get the oil that you want.
Because demand is growing for this oil so quickly, farmers are working to switch over their current crops to high oleic canola oil. But how many should switch? What will the market look like in two years? These are all questions that many farmers struggle with on a daily basis. Many will not switch over to a new crop unless they are guaranteed that it will sell.
So what’s the best way for you to lock in your supply of this oil starting after the next harvest (which happens in September-October 2015)? Contract with your supplier now for the oil, which will allow them to lock in the necessary seeds with the farmer, which will be reserved specifically for you.
Lock In Supply Now To Guarantee The Availability Of The Oil You Need
Now is the time to look at your October 2015-October 2016 needs for High Oleic Non-GMO Canola Oil.
Right now is when farmers are actually putting seeds in the ground. You can be the reason that a farmer decides to put in high oleic canola seeds instead of something else.
Farmers are planning their 2015 harvest as we speak. The seeds being put in now will be harvested in September-October 2015, and all of the oil produced from those seeds must last until the next harvest in October 2016.
That means that the supply chain you lock in now will allow farmers to grow your seeds and will guarantee your supply of High Oleic Non-GMO Canola Oil from October 2015 to October 2016.
What Information Do You Need To Know To Lock In Supply?
Your supplier will need to know some basic information about your oil needs to be able to lock in a contract.
Be prepared to answer the following questions, which will affect your total cost and the plan that your supplier develops on their back end. Your answers will determine the packaging that they bring the oil in, how much storage space they need to reserve for your inventory, and more.
- How much inventory will you need over the year
- When will you need your first oil delivery
- Will your deliveries happen on a regular, planned schedule
- Will delivery be all at one time, monthly, weekly, etc?
- Please outline your typical inventory pull cycles and volumes for each
Now get working with your supplier to get your inventory locked in for next year! Great job planning ahead.
Topics: Canola Oil, Non-GMO
