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Key factors include seasonal crop volumes in major producing countries, crude oil prices due to biofuel demand, government export policies, exchange rates, and industrial demand from the food and cosmetics sectors.
Palm oil leads global production, followed by soybean oil, then canola oil and sunflower oil. These four oils represent the vast majority of global vegetable oil production and consumption.
It must be mechanically extracted without chemical treatment, with free acidity below 0.8%, and must pass sensory taste tests confirming the oil is free of any flavor or odor defects, according to International Olive Council standards and the Codex olive oil specification.
Trans fats mostly form during partial hydrogenation of liquid oils. They are linked to increased heart disease risk, which is why the World Health Organization and many countries have imposed strict limits or full bans on their use in processed foods.
Melting point is the temperature at which fat changes from solid to liquid. Oils with a high melting point are preferred for applications requiring a solid texture, like shortening and margarine, while low-melting-point oils are used for frying and direct cooking.
The core difference is the ratio of saturated to unsaturated fatty acids. Animal fats are usually higher in saturated fatty acids, making them solid at room temperature, while vegetable oils are usually higher in unsaturated fatty acids and remain liquid, with exceptions like palm oil and coconut oil.
Chapter 15 of the HS system covers nearly all animal and vegetable fats and oils, subdivided by source and by processing degree. Some exceptions, such as cocoa butter, are classified under Chapter 18, and ghee under Chapter 04.
The Harmonized System (HS) is a globally standardized customs classification for the first six digits in every country, precisely identifying the type of goods. Any error in an oil's HS code can mean paying higher customs duties than required or delaying the shipment at customs.
Crude Palm Oil (CPO) is the initial product from pressing palm fruit; it has a dark red color and is not used directly in food. Refined, Bleached, and Deodorized (RBD) oil results from processing CPO through thermal refining and bleaching to remove impurities, odor, and color, making it ready for food and industrial use.
Codex Alimentarius is a collection of international food standards created by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO) to ensure food safety and quality and facilitate global trade. For oils and fats, Codex sets technical specifications for each oil type, and most Arab countries rely on it as a reference for their national standards and import requirements.
