A CRISP manufacturer based in Conwy says it faces “another crisis in a long list” amid the current shortage of sunflower oil.
Jones o Gymru, which also produces chocolate, popcorn, and Welsh snacks such as Bara brith and Welsh cakes, said it has seen the price of sunflower oil more than double of late to rise to an all-time high.
This is in part due to the ongoing conflict between Russia and Ukraine, two countries which, founder of Jones o Gymru, Geraint Hughes, said, account for 80 per cent of the world’s harvest of sunflower oil.
Indeed, according to data provided by NielsenIQ Scantrack, sunflower oil prices have risen steeply, by 17p to £1.34 a litre.
This followed a rise of roughly 60 per cent, from £1,130 per tonne in February to more than £1,800 in March.
Mr Hughes said: "We use high oleic sunflower oil to hand-cook our crisps, and have seen the price more than double in the last few weeks to reach an all-time high.
“More worryingly, though, is the expectation that the supply of sunflower oil will dry up in the next month or two.
"Although we had a relationship with a French supplier, the fact that Ukraine and Russia accounted for 80 per cent of the world's harvest of sunflower oil means that the whole market has been disrupted.
"We can't and shouldn't complain, as our circumstances is most fortunate compared to what is going on in Ukraine.
“We're keen to share what is going on in the sector as our loyal customers may, later in the year, find we've had to change our product ever so slightly, if we can source suitable rapeseed oil instead.”
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Mr Hughes added that other Jones o Gymru products, such as its popcorn, are safe due to the fact it is made using rapeseed oil, but said this is not viable to also use for its crisps due to a similar rise in prices.
Following the challenges his business faced, and continue to face, due to Brexit, the COVID-19 pandemic and more, Mr Hughes said he is having to make contingency plans until this year’s sunflower harvest, at the end of the summer.
Even last year, droughts in Ukraine and Russia saw sunflower oil prices jump to almost £1,200 per tonne, its highest point at that time for 12 years.
"We're fortunate that our popcorn is uniquely popped in Welsh 'Blodyn Aur' rapeseed oil, so we have little concern there.
“It's not feasible for us to use 'Blodyn Aur' for the crisps as that market has also seen a sudden surge in demand, which means supply is extremely tight."
"You cannot switch supplies of edible oil on and off, as they need to be planned months, if not years in advance, as part of a crop rotation.
“This year's harvest of sunflower will not come in until end of summer, so our thoughts is very much about how to continue with the least disruption from now until September.
"We've had Brexit, the pandemic, packaging shortages, supply chain collapse and many more issues to face up to over last two to three years, so this is probably going to be another crisis in a long list we and other food businesses will have to deal with."
Jones o Gymru’s crisp products include Welsh mature cheese and onion, Halen Môn sea salt and vinegar, and y Ddraig Goch sweet chili.
For more information, go to: www.jonesogymru.co.uk.
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