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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
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  • Number of pages: 2

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    The notion of banning trans fat has existed since the dawn of industrialization and has played an integral role in the United States economy. Trans fats are a special type of fatty acid made through the process of reconfiguring the chemical structure of atoms. These shifts in atomic structures are natural in some foods, such as dairy products; regardless, due to its perishable nature, hydrogenation became a common method for producers to maintain biodegradables on the shelf for a longer period of time, saving them both money and time. As a result, health conflicts emerged and laws soon started to enforce the banning of trans fats. Specifically, in 2015, the United States Food and Drug Association (FDA) released its final determination that Partially Hydrogenated Oils (PHOs) are not Generally Recognized as Safe (GRAS). The decision was made subsequent to extensive research into the effects of PHOs, which are the primary source of artificial trans fat in processed foods. According to the FDA, “Removing PHOs from processed foods could prevent thousands of heart attacks and deaths each year.” However, what will these enforcements mean economically for businessmen, restaurants, food industries, and the United States as a whole? Fortunately, it is evident that the United States has and will experience a massive monetary net gain from the trans fat ban, as ensured by the declaratory order released by the FDA.

Cost Estimations

    Through the use of a memorandum, the FDA attempted to estimate the potential costs associated with removing trans fats and PHOs from the food supply: what they unexpectedly found were . According to the reports, the FDA estimates the 20-year net present value of costs to be between $12 and $14 billion, and reaped benefits between $117 and $242 billion. These approximations were based on packaged food reformulation and relabeling, increased costs for substitute ingredients, and consumer, restaurant, and bakery recipe changes. Additionally, the memorandum had monetized the expected health gains from the removal of PHOs from the food supply using the information presented in FDA's safety assessment. Because of this, it is evince that the banning of trans fats have and will be a boon to the economy of the United States.


    Within the first few years of prohibiting trans fats, agricultural industries have taken action to replace their growth of hydrogenated products through the use of alternative oils, such as palm oil or high oleic canola oil, which increased soybean oil market share by more than 20%, noted David Tegeder, senior marketing manager for Corteva Agriscience. The United Soybean Board (USB) estimates that the industry gained 4 billion pounds of annual soybean demand once trans fat labeling went into effect in 2006. In addition to the genetically-modified high oleic varieties from Corteva, Schillinger Genetics, an Iowa-based seed company, had released two non-genetically-modified high oleic soybeans this year, after licensing the trait from the Missouri Soybean Merchandising Council. A Minnesota-based specialty-food ingredient company called Calyxt is targeting the upper Midwest for production of its non genetically-modified high oleic soybean, created via gene editing. The improved adjustments made by these sectors of the economy have resulted in a decrease in cost expenditures in various sectors, including infrastructure, public transmit, and public education. Consequently, the agricultural sector of the economy has experienced numerous pros from the obliteration of trans fats in the United States.

Health Care

According to several sources, trans fats have a severe negative impact on cardiovascular health. As a consensus, the medical community has agreed that trans fats should not be intaken because it raises LDL, or "bad" cholesterol, and lower HDL, or "good" cholesterol. People who have high levels of trans fat in their diets are more susceptible to heart attacks, diabetes, or strokes. Because of this, the ban on trans fats in the United States has “saved over 8 million lives”, as concluded by Dr. Boris Lushniak, dean of the University of Maryland School of Public Health and former U.S. Deputy Surgeon General. Moreover, it's also expected to save $140 billion over 20 years in healthcare, proving the vitality of the ban on its economy. Therefore, these laws will also ensure that debts amongst individuals who seek health benefits for excessive trans fat will decrease significantly, meaning that less people will be under financial burden and society will have less financial tension.

Food Industries

    In terms of the various food industries in the United States, it is important to note that some have accustomed to the ban, while others have had mixed feelings due to the major adjustments required in the ingredients of their food products. Nonetheless, most if not all food distributors believe that the ban will ensure a stronger and thriving economy, along with the ideology that it will decrease risks of many types of diseases. “Food manufacturers that may have the hardest time removing trans fats are those that make products that need to be baked at very high temperatures” said Tom Brenna, a professor of human nutrition at Cornell University. “Trans fats are stable at high temperatures, so they work well in products such as cookies and pizza, which require high baking temperatures.” However, even manufacturers of these products have found substitutes, such as palm oil. Furthermore, these companies have seen increases n revenue in part to the use of healthier, unsaturated fats without affecting the “taste” factor of their products produced. Accordingly, this trend outlines the positive effect of proscribing trans fats in various food industries.


    Ultimately, the ban on trans fats in the United States have economically benefited many transnational corporations, such as health care and food industries. Even though some believe that a multitude of disease-causing ingredients are replacing trans fats, studies have proved that the substitutes were deemed beneficial to our health. In addition, cost estimations conducted by the United States Food and Drug Association reveal positive economic growth subsequent to the prohibition of trans fats. Economic sectors, such as Health Care and Food Industries, have seen an uprising in their profits due to this an action. Whence, it is rational that the United States has, is, and will experience an escalation in its economy due to the withdrawal of trans fats.

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