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Food-grade Sector Small but Fast-growing

Food-grade lubricants were a $182.8 million business in 2015, weighing in at 43,700 metric tons. In three years, the business is expected to be worth $256.5 million. These figures are an incentive for lubricant suppliers to look at the food-grade market as an area for growth, said Srdjan Stankov of NSF International, a global product testing, inspection and certification organization.

Food and agribusiness combined are a $5 trillion global industry, and investments in agriculture have tripled to more than $100 billion annually since 2004, according to data consultancy McKinsey & Co. A report by research company Markets and Markets forecasts the food-grade lubricants market will expand to meet those investments in machinery and plants by 40 percent to 64,450 tons by 2021.

While food demand in emerging markets is growing the fastest, Stankov noted during a presentation at the ICIS ELGI Industrial Lubricants Conference in Vienna last November, the United States is still the dominant export destination, with China, Russia and India following behind, as they increasingly rely on imports of food.

There are a number of international initiatives that govern the global food industry, and failure to comply with them affects companies and their suppliers, including lubricant manufacturers.

One such effort is the Global Food Safety Initiative, established in 2000 by the food industry with a goal to improve food safety in the global supply chain. GFSI has been accepted and is required by many global retailers, including the U.K.s Tesco, American chain Wal-Mart, Germanys Metro, French giant Carrefour, Switzerland’s largest retail company Migros and Dutch supermarket and e-commerce company Royal Ahold Delhaize.

International food safety standards have specific requirements for manufacturers when it comes to production area and usage of lubricants, greases, cleaning agents, etc., Stankov confirmed recently by email.

Another is the standard for food safety that requires materials used for equipment and plant maintenance […] such as lubricating oil to be food grade and of a known allergen status issued by BRC Global Standards, a brand and consumer protection organization. BRC standards are used by more than 26,000 certified suppliers around the world and are often a fundamental requirement for leading retailers, manufacturers and food service organizations.

While not directly added to products, in case of contamination food-grade lubricants must be chemically inert, tasteless and odorless but must also perform the same functions of any other lubricant.

In the U.S., and globally, lubricants must be approved and registered. NSF, regarded as a global authority on food safety, uses the German Institute of Standardizations rules as its food-grade lubricants guideline, which will soon be adopted by the International Standards Organization.

Food-grade lubricant that only has incidental contact with food and all ingredients must also comply with the U.S. Food and Drug Administrations Code of Federal Regulation 21 178.3570 for lubricants with incidental contact, contain no heavy metals, carcinogens or mutagens, Stankov explained. They must also use generally recognized as safe ingredients with product labels that make no misleading claims, contain clear instructions for use and are traceable to a manufacturer.

Food-grade lubricants are also constrained and tested in line with ISO 21469: Hygiene Requirements for Lubricants with Incidental Product Contact, a voluntary international standard that applies to lubricants used in food and beverages, cosmetics, pharmaceuticals, animal feed and tobacco products.

In addition, as emerging markets move toward economic stability, they are likely to adopt food-safety analysis systems such as Hazard Analysis and Critical Control Points and other industry principles. All of these factors will influence the demand for food grade lubricants.

Demand for food-grade lubricants will continue to grow globally for a variety of reasons, Stankov said. For example, the FDAs 2011 Food Safety Modernization Act requires importers to tighten controls over their food supply chain. If companies fail to comply, they risk suspension of their registration and will not be able to offer food for sale legally in the U.S. All this means potential loss of business to their suppliers, including lubricant manufacturers, Stankov warned.

Global food trade remains necessary to feed rapidly growing populations and meet consumer demand, Stankov said. Therefore, voluntary standards like GFSI remain front of mind for global retailers and food manufacturers.

Governments are focusing more and more on food safety and developing stronger regulations. Thus, lubricant manufacturers should continue to work together to define best practices and ensure that food grade lubricants are properly manufactured, NSF registered and applied. This is the best way to maintain consumer trust, he concluded.