Market Report: Food

Due to fluctuating crop yields and various production dependencies, the market for raw materials and ingredients is undergoing constant changes. As the year comes to an end, we want to inform you of the latest news and give you the opportunity to discuss your thoughts with us at our stand at Food Ingredients Europe in Paris from 3-5 December. We look forward to seeing you!

Market Report: Food Ingredients


Konjac glucomannan

Following a poor harvest last year, we are expecting to see better yields this year. We currently advise covering only your short-term needs. Long-term contracts should be discussed only from the end of the year, since it is likely that prices will fall.


Locust bean gum – conventional and organic

Back in the summer of 2019 the first producers were already reporting a stop in production, since there were no longer any raw materials available on the market. Following on from this, the new 2020 season will begin without raw material surpluses. In most cultivating countries, such as Italy, Spain, Portugal, Turkey and Cyprus, this year’s harvest is estimated as 50% below average. Only in Morocco has the harvest turned out well this year. Moroccan suppliers are aware of this situation and see no need to price their raw material cheaply on the market.

Currently, only very few manufacturers are offering large volumes and long-term contracts due to concerns they will not be able to fulfil them. Despite the already very high price level, we are assuming that there may be further price increases if demand remains consistent.

We are advising long-term planning and coverage so that you will be able to continue production until the next harvest in the coming year. We at TER INGREDIENTS GMBH & CO. KG will then store the quantities on your behalf in order to secure your supply. Furthermore, producers should consider substituting parts of their formulas with tara gum, for example. If you are interested in this, we will be happy to provide you with detailed advice.


Organic psyllium

After almost all psyllium manufacturers had their organic certification revoked this year, the crisis surrounding organic-quality goods is set to continue until at least the next harvest in the spring. We currently see a major challenge in fulfilling ongoing contracts on time, since only part of the volumes originally sold as organic raw material can actually be exported as organic goods. Unfortunately, manufacturers are currently unwilling to engage in spot deals.

Since it is a long and bureaucratic process for manufacturers to regain organic certification, only a few have done so thus far. We find ourselves in the happy situation that our manufacturer still holds its organic certification and is able to ship the goods following very complex multiple analyses. We are assuming the prices for organic goods will continue to rise until at least the spring of 2020. Please review your requirements and inform us of them so that we can secure the necessary volumes for you.


Conventional psyllium

Since a large proportion of what are actually organic goods now has to be sold as conventional goods, higher volumes are available than was originally thought. Prices have fallen to a lower level accordingly and long-term contracts are advisable.

Furthermore, we would like to present to you the unique Psyllium Protein Powder. This boasts a certain unique selling point, since it serves for protein enhancement on the one hand, and on the other boasts a swell volume of min.1:12, with simultaneous fiber enhancement (min. 35% fiber content).For those who are interested, we will be happy to provide you with samples and specifications.


Guar gum – conventional and organic

This month, the prices for both qualities have reached a record low for this year.

Thanks to a good monsoon season, a rich harvest is expected and the prices have improved continually over the last few weeks. Thanks to rising demand in both the foodstuff and technical segments, many market participants are assuming prices will rise. Right now, we are unable to give any clear recommendations for action, because although the harvest is a positive sign, the increased demand and greater activity among suppliers/speculators are causing uncertainty.


Tara gum

Due to the higher prices of locust bean gum, buyers are seeking alternative products and the demand for tara gum is increasing notably. We are assuming that the prices will continue to rise since availability is limited. It is worth mentioning, however, that the prices are nevertheless only around a quarter of those of locust bean gum. During the summer of 2019, manufacturers attempted to raise prices considerably, although thus far with limited success. If you consider, however, that price levels are still below the norm and there is likely to be an increase in demand, a further price increase is possible. We therefore recommend agreeing contracts for your long-term needs as quickly as possible.


Xanthan gum

Manufacturers of xanthan gum were attempting to affect a price increase up until the spring of 2019. In the meantime, however, high anti-dumping duties were introduced in the USA for xanthan gum from China.

This has led to the European market becoming all the more important for the Chinese goods.

We are currently operating on a stable level and there is no urgent need to take action for the time being. Nevertheless, we do consider the current prices to be favorable, so it is advisable to agree long-term contracts.


Agar – conventional and organic

The prices currently remain stable and relatively low for both organic and conventional goods. After Gelidium agar was successfully replaced by Gracilaria agar in many formulas, the prices for Gelidium have also fallen further.


Carrageenan

After last year when prices repeatedly saw increases, they have now fallen slightly despite increasing demand thanks to good availability following the end of the algae-drying process. This is evident primarily in the prices for IOTA carrageenan, which are currently at a relatively low level in comparison to KAPPA carrageenan.

Now, with the rainy season, we are expecting to see rising prices once again, hence we recommend to cover at least 50% of your annual needs through contracts. As exclusive distributor for the biggest producer of Philippine RICO carrageenan (W Hydrocolloids) in the DACH region, we offer KAPPA and IOTA refined and semi-refined, both in pure form and in customer-specific blends.

We will also be happy to analyze the type you are currently using and provide you with this analysis free of charge. Our experienced application technicians can then recommend a suitable type for you and advise you on usage and production.


Sodium alginate

The prices for sodium alginate are hovering around a low level and we can assure you of good offers before the end of the year. The year end is an ideal time at which to agree annual contracts, and we strongly urge you to do so promptly where needed.


Tragacanth

The prices for tragacanth are stable, but very high. We do not foresee any change here. If you have not yet covered your needs for this unique hydrocolloid, we will welcome your enquiry.


Gelatin/collagen (fish, pork, beef)

Due to the African swine fever in China and the production shortage at one of the biggest beef gelatin factories in Argentina (approx. 20% of the global market), the situation is currently very tense. Prices are rising considerably, and availability is becoming increasingly tricky, meaning that spot deals are becoming virtually impossible. We recommend you cover at least your medium-term needs promptly.


Maca powder

The price increases we already reported have now reached Europe, since the affordable goods have largely sold out among traders. Prices are continually being corrected upwards. Based on the historical average prices, we are still hovering at a low level so we still recommend that you cover your annual requirement before prices rise further. We will be happy to put together an individual offer for you for organic or conventional maca in the colors yellow, red or black.


Lucuma powder

Despite the poor availability for organic-quality goods, prices have hardly risen so far.

This is down to the low European demand overall. Natural lucuma powder contains beta carotene, niacin, important vitamins and minerals such as iron, zinc, potassium, calcium and magnesium. In addition, it also serves as a natural sweetener. In South America the powder has long been a household staple, but the trend does not yet seem to have reached Europe.


Organic turmeric

Colorant, superfood or just a seasoning? With organic turmeric we have added a true allrounder to our range! We are currently offering organic turmeric with a curcumin content of at least 3%, both treated and steam-treated, and as a standard product. However, we can also offer a product with curcumin content of at least 5% or even extracts with considerably higher curcumin values. Corresponding analyses, for example on aflatoxins, heavy metals, pesticides and all specified parameters, can be provided for every production batch.

Since our partner is granting us special entry prices for a limited period only, we are currently able to offer you very lucrative prices. Please utilize this opportunity and send us your enquiries.


If you have any questions about the products and our offer, please do not hesitate to contact me:

Benjamin Dux
Head of Sales
Tel: +49 (0)40 - 300 501 8118
b.dux@tergroup.com