Fat Matters “Maslo-Del” Proposes Palm Oil Excise: Industry Experts Warn of Market and Consumer Risks

The letter states: “To support domestic producers engaged in the production of fat-and-oil products and to protect the food security of the Republic of Kazakhstan fr om import dependence, we request consideration of an excise tax on palm oils and their fractions in the amount of $250 (130,250 KZT) per ton.”

The document further emphasizes that “160 thousand tons of palm oil and its fractions are imported annually into the Republic, making us 100% dependent on imports.”

“Maslo-Del” asserts that “opening the B2B market without regulating trans fats will increase the export potential of Kazakhstan,” especially in Central Asian and Chinese markets, wh ere “trans fats are not regulated.” The company highlights that such initiatives will allow for “increased deep processing of vegetable oils produced in Kazakhstan.”

What Are Trans Fats?

According to industry experts, trans fats are a byproduct of partial hydrogenation of vegetable oils. In the hydrogenation process, hydrogen is added to liquid fats (e.g., sunflower or soybean oils) to make them solid at room temperature. This approach makes fats more suitable for industrial production.

However, international research indicates that trans fats:

• Increase “bad” cholesterol (LDL)

• Decrease “good” cholesterol (HDL)

• Increase the risk of cardiovascular disease, type 2 diabetes, and obesity

• May be linked to a higher risk of cancer

Trans fats continue to be used in the food industry for several reasons:

• Shelf-life extension: They prolong product shelf life by preventing spoilage.

• Texture and flavor improvement: They provide desired texture and taste, especially in baked and fried goods.

• Cost-effectiveness: They are cheaper than natural fats, making them attractive to producers.

Palm Oil: Harmful or a Substitute?

Trans fats and palm oil are often compared due to similar functional properties like improving texture, extending shelf life, and maintaining stability at high temperatures.

Palm oil is a natural vegetable oil that contains no trans fats but is high in saturated fatty acids (around 50%), which may raise LDL cholesterol and increase cardiovascular disease risk. Depending on the refining method, it may contain glycidyl esters, which are potentially carcinogenic. Still, some experts argue palm oil may be less harmful than trans fats, especially with moderate consumption and proper processing.

Its semi-solid consistency at room temperature and long shelf life make it widely used in baked goods, margarine, and other food products.

History of International Regulation

In its letter, “Maslo-Del” justifies the excise proposal by citing the need to align with practices used in the European Union.

Pavel Selivanov, head of “Maslo-Del,” explained to DairyNews.today: “Kazakhstan cultivates oil crops on 3 million hectares… Our volumes of rapeseed and sunflower oil are sufficient to meet domestic fat demand.” He also noted, “Hydrogenated fats contain up to 25% saturated fatty acids, while palm oil has around 70%… So if we ask what’s more harmful—palm is much worse.”

He added, “Why are we feeding and working for Indonesia and Malaysia?.. Why is our palm oil 100% imported? Why can’t we do it like Europe?”

The DairyNews editorial team examined EU Regulation 2019/649, cited by “Maslo-Del.” This EU regulation, adopted on April 24, 2019, restricts the content of industrial trans fats in food products, amending Annex III of Regulation (EC) No 1925/2006, except for naturally occurring animal fats.

Comparison of EU vs. EAEU Trans Fat Regulation Approaches

Kazakhstan’s system of raw material quality and safety control is reported as weak and ineffective.
A former employee of "Maslo-Del" noted:

“There is currently no regulation in Kazakhstan that controls trans fat use. Even our labs aren’t ready.”

What About Ukraine?

"Maslo-Del" claims in its letter that Ukraine banned the use of palm oil in dairy and baby food.

However, in late 2024, Stepan Kapshuk, director of the “Ukroliyaprom” association, clarified in an interview:

“There is no ban on palm oil in Ukraine and there cannot be! The law restricts trans fats, not palm oil.”

“Banning palm oil with current technology is unrealistic… It’s an irreplaceable ingredient in the global food industry. Banning it would shut down our entire bakery and confectionery sectors.”

The Kazakhstan Oil and Fat Union sent a letter on March 11, 2025, opposing "Maslo-Del’s" proposal. It criticizes the research cited by "Maslo-Del" as flawed and unreliable.

Dmitry Dokin, chairman of “Shin-Line,” a Kazakh ice cream producer, stated:

“Trans fats are medically proven harmful… The world is phasing them out. Import duties won’t help food security; they’ll just raise prices.”

“Palm oil slightly undercuts local producers… But trans fats are scientifically proven to be worse.”

Konstantin Nevzorov, president of the Oil and Fat Union of Kazakhstan, said:

“'Maslo-Del' wants to increase the trans fat limit in industrial margarine to 20% and remove it from regulation entirely.”
“Their goal is to keep cheap hydrogenated raw materials, banned worldwide, for profit—at the cost of public health.”

“The entire market transitioned to safer formulations except ‘Maslo-Del,’ despite higher production costs. It was a mandatory change based on law—and public health must come before profit.”

EFKO Kazakhstan, one of the largest oil and fat companies in the country, declined to comment on this matter.

Eurasian Foods Corporation directed DairyNews.today's correspondent to the Oil and Fat Union of Kazakhstan, of which it is a member.

Konstantin Nevzorov, president of the "Oil and Fat Union of Kazakhstan," expressed concern in a conversation with DairyNews.today about the initiatives of "Maslo-Del" to change the requirements of the Technical Regulations for oil and fat products. He noted that the company is actively promoting proposals to increase the permissible content of trans-isomers of fatty acids in industrial margarines up to 20% and to exclude these products from trans fat content regulation.

"The main goal of the company [LLP 'Maslo-Del'] is the unwillingness to lose cheap hydrogenated raw materials with a high content of TFA (which has been abandoned almost worldwide) and the desire to expand the production of these materials in the Republic of Kazakhstan solely for its own economic benefit, despite the scientifically proven harm to human health and life," said the head of the Oil and Fat Union.

Konstantin Nevzorov emphasized that all the initiatives of "Maslo-Del" are not supported by the majority of market participants from EAEU member states. He also noted that, unlike liquid vegetable oils, palm oil does not require hydrogenation due to its high content of saturated fatty acids (up to 50%), which makes it a safe alternative to hydrogenated fats. If a product contains palm oil, it does not contain trans fats.

"Changing the recipe led to a significant increase in the cost of production. Nevertheless, all market participants switched to the new technology, except for the aforementioned company. The change in production conditions was mandatory for everyone, as it is a legal requirement, and the health of the nation cannot be opposed to production economics, whether domestic or foreign," the expert stated in their response to DairyNews.today.

As of the time of publication, the official response from the Prime Minister to the appeal of "Maslo-Del" has not been published.

The editorial board of DairyNews.today will continue to monitor the situation on the market.

Information about the companies mentioned in the article:

• Shin-Line, LLP

• Branch of LLP "MASLO-DEL" in Petropavlovsk

Information about the holdings mentioned in the article:

• Eurasian Foods Corporation

• EFKO Group