In a world of rapid disruption and rising expectations around sustainability, IFFCO Group has made supply chain resilience a strategic priority. Melahat Yildirim, the group director of Procurement, explains how the company has reinvented its approach to sourcing, logistics, and manufacturing to navigate volatility, uphold ethical standards, and leverage digital technologies. From building locally anchored supply chains to deploying AI-driven optimization and pursuing deforestation-free, traceable sourcing, IFFCO is working toward a future-ready, responsible, and agile food system that serves the Middle East and beyond. The following examination delves into how IFFCO has adapted its procurement and logistics to regional volatility and global uncertainty, while maintaining a strong emphasis on sustainability, transparency, and innovation.
Local resilience: redefining procurement and logistics in a volatile environment
The global landscape of supply chains has experienced unprecedented disruptions in recent years, compelling companies to rethink resilience at every link. For IFFCO, resilience begins with the depth and reliability of its own footprint. Rather than relying predominantly on distant suppliers and lengthy transport routes, the company has redefined its supply chain strategy to prioritize local manufacturing and local sourcing as core pillars. This strategic shift reduces dependence on imports, accelerates time-to-market, and enhances the ability to respond swiftly to market changes. It also strengthens the intrinsic quality controls that can be more challenging to maintain when sourcing from far afield. The approach has proven especially pivotal in stabilizing essential product categories such as oils and fats, where supply continuity and consistency are non-negotiable for both consumers and partners.
In addition to local anchor points, IFFCO has invested in shorter, more agile supply chains across the GCC and nearby regions. By combining a global sourcing network with a strategic close-to-home presence, the company can ensure steady access to critical materials, minimize transport disruptions, and reduce emissions. This configuration also helps preserve affordability while allowing products to be better tailored to local tastes—a nuanced advantage in consumer-focused food manufacturing. The result is a supply web that is more resilient to external shocks, whether those shocks arise from climate events, geopolitical tensions, or macroeconomic volatility. Importantly, sustainability remains a central consideration in all these adjustments. Ethical and sustainable sourcing is not an afterthought but a core driver of strategic planning and supplier engagement.
To anticipate and respond to disruptions with greater speed, IFFCO leverages real-time visibility and predictive analytics. These digital tools enable proactive risk management, allowing the organization to detect potential bottlenecks, identify alternate sourcing paths, and mobilize contingency plans when necessary. The aim is to minimize the downstream impact of events such as weather anomalies or political disruptions, while preserving product integrity, quality, and affordability. This integrated approach to resilience underscores the link between robust supply chain architecture and ongoing consumer trust, as well as the role of technology in turning uncertainty into an operational advantage.
From a practical perspective, the company’s resilience strategy demonstrates how procurement and logistics decisions can be anchored in local economic ecosystems without sacrificing scale or efficiency. Local manufacturing networks help secure the stability of supply for critical ingredients, while regional agility supports responsiveness to changing consumer demands and taste preferences. This dual emphasis—local anchoring combined with agile regional networks—forms a stable foundation upon which IFFCO can build sustainable growth in dynamic markets.
In this context, the focus on governance and accountability remains central. The company’s approach to sourcing emphasizes long-term value creation through sustainable, inclusive, and transparent supply chains. This perspective extends beyond mere compliance and embraces a forward-looking framework that prioritizes traceability, supplier collaboration, and shared value creation with communities. The consequence is a supply chain that is not only efficient and resilient but also more equitable and responsible in its impact on the environment and on people who participate in the supply chain.
Ethical sourcing at scale: how IFFCO embeds sustainability across markets
IFFCO’s procurement philosophy goes beyond compliance, emphasizing the creation of long-term value through sustainable sourcing that respects environmental integrity, human rights, and transparent supplier relationships. The company’s sourcing model is designed to influence the broader ecosystem—how raw materials are produced, traded, and transformed into final products—so that environmental and social considerations are woven into every decision. This strategic emphasis on ethics and sustainability shapes how IFFCO engages with suppliers, how it structures its material mix, and how it ensures accountability across diverse markets.
In tangible terms, IFFCO has implemented a structured, forward-looking framework centered on traceability, transparency, and collaboration with suppliers. The company’s 2024 ESG report highlights that roughly 95 percent of raw material volume comes from four principal crops—palm, soy, sunflower, and wheat. For palm oil, IFFCO has achieved 100 percent traceability to the mill, marking a significant milestone in supply chain visibility. The company is actively progressing toward plantation-level traceability, with the ambitious aim of establishing a deforestation-free direct supply chain by 2025. This progression reflects a broader commitment to eliminating unsustainable sources and ensuring that raw materials are produced responsibly from plantation to processing facility.
To support responsible sourcing across all key crops, IFFCO has created a supplier database that tracks origin, certification, and compliance with the company’s supplier code of conduct, which is aligned with global human rights and environmental standards. In tandem, satellite-based deforestation monitoring tools help the organization identify risks and maintain oversight in critical sourcing regions. These technologies provide a proactive capability to detect potential deforestation activities and enable swift corrective actions, thus reducing ecological and reputational risk while strengthening supplier accountability.
This year marks the rollout of IFFCO’s Responsible Sourcing Code for soy, sunflower, and wheat—a formal framework intended to help suppliers meet sustainability standards, fill data gaps, and improve reporting. The objective is to achieve 100 percent traceable sourcing for these crops, ensuring alignment with the company’s ethical and environmental commitments. This initiative also highlights IFFCO’s emphasis on supplier engagement, capacity building, and local sourcing opportunities as levers to reduce the organization’s carbon footprint and support regional economies.
From a governance perspective, the emphasis on transparency and collaboration with suppliers underpins the broader strategy of building more resilient and ethical supply chains. The establishment of supplier codes of conduct and traceability systems creates an auditable lineage for raw materials, enabling better risk assessment and more robust due diligence. By integrating satellite monitoring and certification checks, IFFCO can continuously monitor environmental risk signals and address non-compliance in a timely manner.
In line with its ethical ambitions, IFFCO has set a clear path toward expanding the scope of traceability beyond palm oil to include soy, sunflower, and wheat. The company’s ambition to make these supply chains fully traceable is accompanied by a commitment to improving data accuracy and reporting, which in turn supports more informed decision-making and greater accountability throughout the supply chain. The overarching goal is to develop a credible, verifiable system that can be communicated to stakeholders, investors, and consumers who increasingly demand responsible sourcing practices.
Concurrently, IFFCO emphasizes supplier engagement and capacity building as central components of its ethical sourcing strategy. By working closely with supplier communities to upgrade capabilities, improve harvest and processing practices, and share best practices, the company aims to elevate the standards of the agricultural supply base. Local sourcing opportunities are pursued not only to reduce transport emissions but also to bolster regional economies, create jobs, and contribute to a more sustainable agricultural sector. The combined effect is a sourcing ecosystem that is both responsible and economically beneficial to the regions in which IFFCO operates.
In sum, ethical sourcing at IFFCO is characterized by a robust mix of traceability, supplier collaboration, data-driven governance, and a commitment to sustainable, deforestation-free supply chains. The company’s approach ensures that raw materials are sourced in ways that protect ecosystems, support human rights, and foster transparency. By extending traceability to plantation level and establishing comprehensive oversight mechanisms through satellite monitoring and supplier codes of conduct, IFFCO situates itself as a leader in ethical procurement within the modern food industry.
Digital transformation: technologies driving supply chain optimization and agility
Digital transformation sits at the core of IFFCO’s strategy for operational resilience and future readiness. The company has embraced a suite of advanced technologies to improve decision-making, efficiency, and sustainability across the value chain. The deployment of artificial intelligence, predictive analytics, and factory automation is designed to drive smarter, faster, and more sustainable choices—from demand forecasting to production planning and packaging innovations. These digital tools enable IFFCO to respond to evolving consumer preferences with greater precision and to minimize waste, emissions, and resource use.
AI applications in IFFCO’s supply chain are multifaceted. In demand forecasting, artificial intelligence helps refine predictions by integrating a broad range of signals, including macroeconomic indicators, seasonality, and historical consumer behavior. This enhanced forecasting capability translates into more efficient production planning, better inventory management, and reduced waste. AI also enables intelligent route optimization for transportation, identifying the most efficient delivery paths, balancing loads, and avoiding bottlenecks. When combined with waste management analytics, AI supports more sustainable operations by reducing scrap, spoilage, and overproduction.
Predictive analytics empower IFFCO to fine-tune product formulations and respond quickly to changing consumer preferences. By analyzing product performance, market trends, and input variability, the organization can adjust recipes and processes in near real-time to maintain quality and consumer appeal. In addition, AI-driven packaging innovations open opportunities for more sustainable, resource-efficient formats without compromising product integrity. This could include optimizing package size, material usage, and packaging materials to align with environmental targets while preserving consumer experience.
The company’s production facilities have been brought online with a high degree of automation, enabling consistent quality, speed, and scale. State-of-the-art, fully automated plants reduce human error, improve safety, and streamline throughput, contributing to a more resilient supply chain. The integration of automation with AI-based decision support creates an end-to-end digital backbone that informs how and where to allocate capital, labor, and materials. This digital ecosystem also provides the visibility necessary to identify and address issues quickly, supporting continuous improvement across the organization.
Beyond internal efficiency, digital transformation supports IFFCO’s strategic objectives in areas such as sustainability and ESG performance. For instance, AI-enabled route optimization reduces fuel consumption and emissions, directly contributing to climate-related goals. Predictive maintenance minimizes downtime and extends equipment life, thereby avoiding waste and reducing environmental impact. By aligning digital investments with ESG targets, IFFCO demonstrates how technology can be a powerful enabler of responsible growth.
In practice, the company’s digital initiatives are designed to complement and amplify human expertise. While automation and analytics deliver data-driven insights, skilled teams interpret these insights, adapt strategies, and foster supplier collaboration. The result is a balanced approach that leverages the strengths of technology while preserving the strategic role of human judgment in procurement, logistics, and manufacturing decisions. The overarching aim is a supply chain that is not only efficient and resilient but also capable of adapting to future challenges and opportunities with confidence.
In the context of a rapidly evolving Middle East market, the digital backbone also supports the company’s ability to scale and maintain agility. As regional dynamics shift—whether through new trade routes, regulatory changes, or evolving consumer tastes—the integrated digital platform provides a stable, real-time view of supply chain performance. This enables faster scenario planning, better risk assessment, and more informed investment decisions, reinforcing IFFCO’s position as a forward-looking player in the regional food system.
Middle East market shifts and IFFCO’s positioning for future readiness
The Middle East is undergoing a significant economic transformation driven by diversification, digital infrastructure investments, and an increasing emphasis on ESG principles. IFFCO aligns with these macro trends by embracing innovation, advancing sustainability, and building operational agility that can withstand ongoing and future volatility. The region’s growth environment presents both opportunities and challenges, and IFFCO’s strategy reflects a deliberate balance between expansion and resilience.
A core element of the Middle East strategy is securing a sustainable energy supply as part of a broader ESG framework. Since 2021, IFFCO has launched more than 30 energy and renewables projects across a diverse geographic footprint that includes the UAE, Saudi Arabia, Pakistan, Indonesia, Italy, Egypt, and Spain. These initiatives are designed to reduce emissions, curb operating costs, and lower exposure to energy price volatility, while reinforcing the company’s commitment to a climate-conscious operating model. This energy transition is not an isolated program; it is woven into daily operations, influencing how facilities are planned, how energy procurement is managed, and how investments in efficiency are prioritized.
The energy transformation supports IFFCO’s broader objective of becoming a resource-efficient, climate-resilient, and people-focused organization. Embedding sustainability into day-to-day operations requires ongoing governance, meticulous planning, and continuous improvement across procurement, manufacturing, and logistics. By integrating renewable energy, energy efficiency measures, and smart infrastructure into its operations, IFFCO advances a holistic ESG agenda that benefits communities, markets, and long-term market health.
In parallel with energy initiatives, IFFCO emphasizes local manufacturing, digital innovation, and regional partnerships as mechanisms to stay agile and competitive amid ongoing economic and geopolitical shifts. Local production capabilities reduce vulnerability to international trade disruptions and create closer alignment with consumer needs, while digital tools enable rapid response to market signals and regulatory changes. Strategic partnerships with regional entities help extend the company’s reach, foster knowledge exchange, and support synchronized growth across markets. For IFFCO, future readiness is defined as responsible, sustainable growth that builds durable long-term value for customers, employees, suppliers, and communities alike.
Operational efficiency and sustainability are treated as complementary goals rather than competing priorities. In practice, this means deploying optimization across transport, warehousing, and packaging to minimize waste and emissions while maintaining reliable product delivery. The region’s evolving regulatory landscape and consumer emphasis on ESG metrics further encourage companies to embed sustainability across their value chains. IFFCO’s approach demonstrates how a thoughtful combination of local manufacturing, digital tools, and strategic partnerships can position the company to navigate regional volatility while delivering on social and environmental commitments.
Strategic positioning in the Middle East also involves aligning activities with broader regional growth agendas and security considerations. By supporting national food and security initiatives and contributing to diversified, resilient supply chains, IFFCO reinforces its role as a long-term partner for markets seeking to reduce dependence on single-source inputs and enhance domestic capabilities. This approach supports the stability of regional food systems, while enabling IFFCO to expand its footprint in alignment with market opportunities and societal goals.
Balancing efficiency with sustainability: sourcing, transport, and packaging
The intersection of operational efficiency and environmental stewardship is a central tenet of IFFCO’s strategy. The company argues that meaningful sustainability gains arise from smarter, leaner operations that deliver tangible, measurable outcomes. In transportation, for example, IFFCO’s Sales and Distribution fleet numbers nearly 1,100 vehicles and accounted for around 7 percent of total emissions in 2024. The company has set a clear target to reduce this by at least 1.7 percent by 2030 through a combination of route optimization, eco-driving training, and continued emphasis on local sourcing. The anticipated result is a reduction of approximately 600 metric tons of CO2 equivalent per year, illustrating how modest, well-planned improvements can accumulate into meaningful climate benefits over time.
Packaging is another area where IFFCO is pursuing a circular economy approach. The company is actively reducing the use of virgin plastics, improving recyclability, and increasing the use of recycled content across its packaging portfolio. The long-term objective is to achieve fully recyclable, compostable, or renewable packaging by 2030, while simultaneously reducing the use of virgin PET and HDPE by 15 percent. This dual focus on recycling and material substitution aligns with broader sustainability targets, consumer expectations, and regulatory trajectories that favor circular packaging solutions.
Operational efficiency, sustainable sourcing, and responsible packaging are not isolated initiatives but interconnected elements of a larger strategy to future-proof the business. By optimizing logistics and routes, ensuring ethical sourcing practices, and advancing packaging with a circular design, IFFCO pursues a coherent vision of low-carbon operations that still meets consumer demands. This integrated approach supports the bottom line while reinforcing responsibilities to the environment and to the communities in which IFFCO operates.
The broader implication is that sustainable efficiency—not just speed or cost reduction, but a holistic, end-to-end improvement—enables long-term resilience. Smarter logistics, responsible sourcing, and climate-conscious packaging work in concert to reduce emissions, minimize waste, and lower the environmental footprint associated with food production and distribution. These measures support not only regulatory compliance and reputational strength but also the long-term viability of regional supply chains in an ever-changing global landscape.
Looking ahead, IFFCO outlines a clear pathway to embed circular, low-carbon practices across the business. The emphasis is on designing and implementing systems that support a sustainable loop—from raw material sourcing to finished products and end-of-life packaging—while maintaining strong supply reliability and affordability for customers. This is not merely a trend but a strategic mandate that aligns with economies, ecosystems, and consumer expectations in the Middle East and beyond.
Next-3-to-5-year horizons: priorities for strengthening resilience and expanding digital capabilities
As IFFCO looks to the next three to five years, the company prioritizes advancing digital and operational capabilities, expanding regional manufacturing capacity, and pushing innovation in line with regional growth and sustainability goals. The roadmap includes expanding the portfolio and engaging new consumer segments in ways that support national food and security objectives. A concrete example of this strategy is the development of manufacturing facilities in Ghana and the Berbera Free Zone plant in Somaliland, the latter being a collaboration with DP World. These projects aim to broaden the company’s footprint and enable faster, more integrated supply chains across multiple regions. The emphasis on regional expansion is designed to improve supply chain resilience and shorten lead times, while also supporting local economies and job creation.
By 2025, IFFCO aims to strengthen its presence in high-growth markets such as the United Arab Emirates, Saudi Arabia, Egypt, and Turkey, with a sharpened focus on Brazil, Asia, and Europe as part of a broader global expansion plan. The full acquisition of Turkey operations is framed as a move to support more localized, resilient supply chains, enabling closer proximity to key markets and suppliers and improving responsiveness to consumer needs. With more than 95 operational sites, over 80 brands, and a track record of presence in over 100 markets, IFFCO positions itself to scale efficiently, leverage digital technologies, and form strategic partnerships that deliver sustainable, long-term value.
The company’s growth and resilience strategy also depends on strengthening its core production and distribution capabilities in strategic regions, enabling faster, more integrated operations that align with evolving consumer demands and regional trade dynamics. The emphasis on regional expansion and diversified market reach is paired with a continued commitment to sustainability and governance. By integrating digital tools with local manufacturing and supplier collaboration, IFFCO sustains a growth trajectory that simultaneously enhances resilience and reduces environmental impact.
In the years ahead, IFFCO’s strategy centers on building a modern, adaptable supply chain that can absorb shocks, capitalize on digital opportunities, and support broader regional development. The company’s extensive network—comprising nearly 100 locations across the globe, a multifaceted brand portfolio, and a presence in diverse markets—provides a strong platform for scalable innovation. The plan includes ongoing investment in digital infrastructure, data analytics capabilities, and supplier development programs to ensure the supply chain remains robust, transparent, and responsive to customer needs.
Ultimately, IFFCO’s forward-looking agenda rests on the conviction that sustainable growth is inseparable from operational excellence and ethical stewardship. The path forward emphasizes continuous improvements in traceability, sustainability, and efficiency, underpinned by a digital backbone that supports informed decision-making and agile execution. As the Middle East and surrounding regions continue to evolve, IFFCO seeks to stay ahead of market shifts by embracing innovation, fostering partnerships, and delivering value that benefits consumers, communities, and the environment.
Conclusion
In summary, IFFCO Group’s approach to supply chain resilience is built on a triad of localization, ethical sourcing, and digital transformation. By prioritizing local manufacturing and shorter regional networks, the company reduces exposure to global disruptions while maintaining quality and affordability. The ethical sourcing framework—anchored in traceability, supplier collaboration, and robust governance—ensures that sustainability is embedded in every link of the supply chain, from palm oil to wheat. The rapid adoption of AI, predictive analytics, and factory automation enhances forecasting accuracy, route optimization, and packaging innovation, delivering both efficiency and environmental benefits. In the Middle East, IFFCO’s strategy aligns with regional energy transitions, ESG priorities, and diversification efforts, positioning the company to navigate uncertainty and seize opportunities. As the organization continues to expand its footprint in high-growth markets and invest in strategic facilities, the focus remains clear: a future-ready, responsible, and agile food system that supports regional development, protects the planet, and delivers value to consumers worldwide.