Oil labeling in Russia could raise production costs and prices

Russia is considering a labeling program for edible vegetable oils that would affect producers and potentially shift pricing. The plan, discussed by industry observers and government officials, centers on applying a standard label to a range of oils and oil-based products to improve traceability and consumer information. The proposal surfaced after the Ministry of Industry and Trade suggested an experiment on labeling that could run from December 1, 2023, through August 31, 2024. The intended scope would include oils from peanuts, soybeans, olives, sunflowers, palms, and rapeseed, as well as fixed oils, margarine, cocoa butter, and cocoa spread. The idea is to determine the practical implications of labeling on production costs and market dynamics while ensuring compliance across the sector.