BREXIT AND THE OIL MARKETS
SHORTAGES FACT OR FICTION?
With the Brexit deadline around the corner and a no deal becoming ever more probable, could we face cooking oil shortages? Cooking oils are traded internationally as a commodity. Soya bean oil is generally produced in the Americas as well as the Far East and is usually labelled as vegetable oil in the UK by major canning companies such as KTC edibles. Most of the Soya bean oil enters the UK in road tanker format from Rotterdam. Issues at the ports may slow down imports and create a delay in delivery of road tankers to the canning plants.
BRITAIN IS A PRODUCER
HOW WILL THE PRICES BE AFFECTED?
Oils are a volatile commodity traded on a volatile currency. Day to day prices of oils are fluctuating and bulk buyers have months of cover protecting us from these fluctuations. We buy from these bulk buyers securing prices for at least 3 months.
What you also need to consider is waste oil markets track the fresh oil markets. An increase in fresh oil prices usually increases the waste oil market, therefore the cost of oil at your restaurant doesn't need to change drastically.
Our predictions are that once we have a confirmed deal or outcome of Brexit, pound Sterling will strengthen, bringing down the cost of fresh oils imported. It will also make the export of waste oils harder for European bio-fuel manufacturers and encouraging UK based bio-fuel manufacture.