Biological enzymes help manufacturers keep costs low
By PD columnist, July 23, 2022The economic turmoil unleashed by the Coronavirus contagion, compounded by the escalating war in Ukraine, has culminated in an unprecedented disruption of global supply chains headlined by colossal shortages and skyrocketing prices of key raw materials and industrial ingredients.
A case in point is the surge in the cost of crude oil and palm kernel oil, leading to the prices of detergents and edible oils dramatically shooting up. The recent ban on palm oil exports from Indonesia has diminished the supply of surfactants used in soap manufacturing, not to mention the spike in cooking oil prices pushing up the cost of living.
Industries are now grappling with the dilemma of either passing on rising input costs to consumers or optimising production processes to keep prices stable and retain customers. Confronted with such a conundrum, most manufacturers will likely choose one of two options—reduce costs or hike prices.
Recent research by consultancy firm Inverto revealed that while 45 per cent of the firms surveyed have been strongly affected by the disrupted supply of raw materials, 73 per cent reported increased prices of key inputs, with 86 per cent citing delay in supplies as major constraints emanating from Covid-19.
Incidentally, manufacturers have responded to the deteriorating supply scenario in different ways—75 per cent passing on the rising costs to consumers and 62 per cent streamlining the raw material supply chain to prevent production expenses from going through the ceiling.
Unfortunately, in the prevailing economic uncertainty characterised by the galloping cost of living, transferring the high cost of inputs to already over-burdened consumers is not sustainable at all. While it may partially offset eroded profit margins, consumers will resort to cheaper alternatives, as is already evident in the detergent market.
Cost optimisation offers a more sustainable pathway to defending profit margins, retaining brand users, and winning over new customers. Hence the growing debate over the use of enzymes as a cost-effective natural substitute for chemical ingredients in many industrial processes.
For manufacturers, substituting biological enzymes for chemicals is a viable survival strategy. Why enzymes? First, it is important to grasp the valuable role of enzymes in production. They are essentially biological molecules that act as catalysts for metabolic and biochemical reactions. They are essential for supporting chemical reactions upon which life depends.
The most effective producers of enzymes in nature are microbes, that is, single-celled organisms like fungi and bacteria, which are proven natural enzyme factories. There are many compelling benefits of using enzymes as a production cost management strategy.
In the human body, for example, enzymes help in digestion and other vital metabolic functions. Since the dawn of human civilisation, biological enzymes have played a crucial role in human life. There are records of ancient communities using yeast and other microbes that produced enzymes to make bread, wine and cheese.
Since then, mankind has devised many uses for enzymes across a variety of sectors such as food, agriculture, chemicals, pharmaceuticals and energy. In fact, modern brewing, baking and detergent industries depend heavily on them.
The use of microbial enzymes comes with a guaranteed stable supply not to mention predictable prices in a fluctuating market. Existing innovative technologies have facilitated the large-scale production of bio-enzymes that are not only safe but readily available and easy to use.
Second, enzymes reduce the cost of production by reducing the consumption of water, energy and raw materials. This leads to less depletion of natural resources used in the production of household and food products. For consumers, enzymes are used in laundry detergents to help remove stains, keep whites white and colour bright, and help care for the textiles they love while using less water and at lower temperatures, translating into lower water bills, longer-lasting fabric and thus greater brand affinity.
Third, enzymes are non-toxic and, therefore, safer for manufacturers, consumers and the environment. They are approved as safe biological ingredients in the manufacture of many products, including detergents, textiles and food. They ensure the quality and stability of products.
At Novozymes, we believe enzymes hold the key to unlocking immense business opportunities. We have the key to unlocking the challenge of growth—for customers who want to grow business.
— The writer is Regional Head of Marketing (Africa) at Novozymes —RNJK@novozymes.com