IFFCO’s Melahat Yildirim shares the blueprint for resilient, ethical, and digitally empowered supply chains

In an era of unprecedented global disruption and rising consumer expectations for sustainability, supply chain innovation is no longer optional—it is central to business resilience.

Melahat Yildirim, group director – Procurement at IFFCO Group, shares how the company has redefined its approach to sourcing, logistics, and manufacturing to navigate volatility, embed ethical practices, and harness digital technologies.

From locally anchored supply chains to AI-driven optimisation and traceable, deforestation-free sourcing, Yildirim outlines how IFFCO is building a future-ready, responsible, and agile food system across the Middle East and beyond.

In recent years, supply chains globally have faced unprecedented disruptions. How has IFFCO adapted its procurement and logistics strategy to navigate regional volatility and global uncertainty?

In recent years, supply chains globally have faced unprecedented disruptions. Resilience is rooted in the strength of our global footprint. We’ve redefined our supply chain strategy to prioritise local manufacturing and sourcing, minimising reliance on imports while enhancing quality, agility, and speed to market. This locally anchored approach has been pivotal in ensuring stability across essential categories such as oils and fats.

We’ve also invested in shorter, more agile supply chains across the GCC and beyond. By building global sourcing networks and refining closer to home, we’re able to maintain steady access to our materials, minimise transport disruptions, and lower emissions, all while keeping products affordable and tailored to local tastes.

Crucially, ethical and sustainable sourcing is at the heart of this strategy. Whether it’s deforestation-free palm oil or traceable wheat and soy, we know that long-term resilience depends on doing things the right way. With predictive analytics and real-time visibility, we’re better equipped to anticipate disruptions — from climate events to geopolitical risks—and act fast when needed.

IFFCO has been praised for embedding sustainability into its operations. Could you elaborate on how ethical sourcing principles are integrated into your supply chain decisions across different markets?

IFFCO goes beyond compliance; it’s about creating long-term value through sustainable, inclusive, and transparent supply chains. How we source materials directly impacts the environment, communities, and overall supply chain integrity. That’s why we’ve adopted a structured and forward-looking approach that emphasises traceability, transparency, and collaboration with suppliers.

In our 2024 ESG report, we cite that approximately 95 per cent of our raw material volume was concentrated in four key crops: palm, soy, sunflower, and wheat. For palm oil, we’ve already achieved 100 per cent traceability to the mill level and are progressing toward full plantation-level traceability, aiming for a deforestation-free direct supply chain by 2025.

To enable responsible sourcing across all key crops, we’ve established a supplier database tracking origin, certification, and compliance with our supplier code of conduct, aligned with global human rights and environmental standards. Satellite-based deforestation monitoring tools also help us identify risks and maintain oversight in critical sourcing regions.

This year, we’re rolling out our Responsible Sourcing Code for soy, sunflower, and wheat, helping suppliers meet sustainability standards, fill data gaps, and improve reporting. Our ambition is 100 per cent traceable sourcing for these crops, fully aligned with our ethical and environmental commitments.

We’re also investing in supplier engagement, capacity building, and local sourcing opportunities to reduce our carbon footprint and support regional economies.

Digital transformation is at the core of operational resilience today. What specific technologies or innovations has IFFCO implemented to optimise your supply chain and enhance agility?

Digital transformation is central to how we future-proof operations and enhance agility across the value chain. We’ve adopted technologies including AI, predictive analytics, and factory automation to drive smarter, faster, and more sustainable decision-making.

AI enhances demand forecasting, planning efficiency, and waste reduction. It also enables intelligent route optimisation and waste management, directly aligned with our ESG goals.

Predictive analytics allow us to fine-tune formulations and respond quickly to changing consumer preferences, while AI-driven packaging innovations enable more sustainable, resource-efficient formats without compromising product integrity.

Our fully automated, state-of-the-art production facilities ensure consistency, speed, and quality at scale. Together, these digital investments create a food system that is efficient, resilient, and ready for the future.

Given the rapidly evolving economic landscape in the Middle East, what are some of the key shifts you’ve observed, and how is IFFCO positioning itself to remain future-ready?

The Middle East is undergoing significant economic transformation, marked by diversification, digital infrastructure investment, and growing ESG emphasis. At IFFCO, we align with these shifts by embracing innovation, advancing sustainability, and building operational agility.

Securing a sustainable energy supply is key. Since 2021, we’ve launched over 30 energy and renewables projects across the UAE, Saudi Arabia, Pakistan, Indonesia, Italy, Egypt, and Spain, reducing emissions, operational costs, and exposure to price volatility.

This energy transformation is central to our ESG strategy. We aim to be a resource-efficient, climate-resilient, and people-focused organisation, embedding sustainability into day-to-day operations while contributing to long-term community and market health.

Simultaneously, we invest in local manufacturing, digital innovation, and regional partnerships to remain agile and competitive amid continued economic and geopolitical shifts. Future-readiness for us means responsible growth that builds long-term value.

How do you balance the need for operational efficiency with long-term sustainability goals, particularly in sourcing, transportation, and packaging?

Operational efficiency and sustainability go hand in hand. Many of our most impactful sustainability initiatives arise from smarter, leaner operations.

For transportation, our Sales and Distribution fleet of nearly 1,100 vehicles accounted for roughly 7 per cent of total emissions in 2024. We aim to cut that by at least 1.7 per cent by 2030 through route optimisation, eco-driving training, and local sourcing—reducing 600 tCO2e annually.

For packaging, we are moving toward a circular economy model: minimising virgin plastics, improving recyclability, and incorporating recycled content.

Our goal is fully recyclable, compostable, or renewable packaging by 2030 while reducing virgin PET and HDPE use by 15 per cent.

Whether through smarter logistics, responsible sourcing, or sustainable packaging, embedding circular, low-carbon practices future-proofs our business while serving the planet and communities.

Looking ahead, what are your priorities for further strengthening IFFCO’s supply chain resilience and digital capabilities over the next three–five years?

Our priorities are advancing digital and operational capabilities, expanding regional manufacturing, and driving innovation aligned with regional growth and sustainability goals.

We see opportunities to evolve our portfolio and engage new consumer segments, supporting national food and security agendas.

Projects like our manufacturing facility in Ghana and the Berbera Free Zone plant in Somaliland, in partnership with DP World, expand our footprint and enable faster, integrated supply chains.

By 2025, we aim to strengthen our presence in high-growth markets such as the UAE, Saudi Arabia, Egypt, and Turkey, with increased focus on Brazil, Asia, and Europe. Our full acquisition of Turkey operations supports more localised, resilient supply chains.

With more than 95 operational sites, over 80 brands, and presence in over 100 markets, we are positioned to scale efficiently, leverage digital technologies, and form partnerships that deliver long-term value.

The next few years will be pivotal as we continue shaping an innovative, adaptable, and sustainable supply chain.

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