Starch Pros

September 09^th 2015

Tate & Lyle to increase EMEA prices for corn-based specialities by 20% on lower corn yields.

Tate & Lyle has announced that it will increase prices of its Speciality Food Ingredients in Europe, Middle East and Africa (EMEA) by up to 20% across a range of corn-based specialty starches, sweeteners and fibers. Price changes will be effective beginning 1 October 2015.

“The decision to increase ingredient prices is never taken lightly,” Pierre Boulanger, Vice President of Speciality Food Ingredients and Sales EMEA said. “However, the recent extreme heat conditions across the European corn belt have led to lower yields, impacting the availability and cost of European corn, a key raw material for our ingredients.”

Tate & Lyle’s Speciality Food Ingredients division consists of three platforms: Texturants, which includes speciality starches and stabilisers; Sweeteners, which comprises nutritive sweeteners and our range of no-calorie sweeteners including SPLENDA Sucralose; and their Health and Wellness portfolio which includes specialty fibers and salt-reduction offering. Additionally, their Food Systems business provides a wide variety of blended ingredient solutions.

Tate & Lyle recorded sales of £2.7 billion in the year ending 31 March 2015 but issued its third profit warning in a year this February, which triggered a steep fall in the company’s share price.

Source: http://www.foodnavigator.com/

September 08^th 2015

Ingredion to consolidate manufacturing facilities in Brazil.

Network optimization to reduce costs and enhance productivity.

Ingredion Incorporated (NYSE: INGR), a leading global provider of ingredient solutions to diversified industries, announced today that it plans to consolidate its manufacturing network in Brazil. Plants in Trombudo Central and Conchal will be closed and production will be moved to plants in Balsa Nova and Mogi Guaçu, respectively.

The consolidation will begin early in 2016 and should be complete by the end of the year. It is expected to result in annual cost savings of $6 – 8 million USD beginning in 2017. Total pre-tax restructuring-related charges of $13 – 16 million USD are anticipated in the third quarter of 2015.

“We continuously evaluate our manufacturing network for improvement opportunities. Consolidating production into Balsa Nova and Mogi Guaçu is part of our overall restructuring program in our Brazilian operations to reduce costs in our network,” said Ricardo Souza, president, Ingredion South America.

Ingredion CFO, Jack Fortnum noted, “The slowing economy recently has impacted volumes in Brazil. However, our continuous improvement programs continue to drive good operational efficiencies. We will remain vigilant in our efforts to maximize productivity and enhance shareholder value.”

In addition to Balsa Nova and Mogi Guaçu, Ingredion will continue to operate facilities in Cabo de Santo Agostinho and São Gonçalo, Brazil.

Source: http://www.ingredion.com/newsroom/news_releases/

August 12^th 2015

Indian starch makers in dire straits.

Higher costs, lower margins and competition force starch makers to under-utilise capacities.

The sluggish growth in the textile sector is having its impact on starch manufacturers. Many of them have already cut down on their capacity utilisation. The crisis has been aggravated by the recent spike in maize prices, which is the main raw material. Due to the widening of demand-supply gap of starch, the manufacturers are operating at a razor-thin margin. The smaller units are worst hit.

I. K. Sardana, the president of the All India Starch Manufacturers Association, told Business Standard that a drastic fall in the price of finished good coupled with revision in price of maize had put the manufacturers in a catch-22 situation.

“The maize prices that remained in the range between Rs 1,200 and Rs 1,300 per quintal in April and May this year have shot up from Rs 1,525 per quintal to Rs 1,575 per quintal, of late. At the same time, starch prices have dropped 10 per cent to 15 per cent. Starch prices slipped from Rs 22,000 per tonne to 23,000 per tonne six months to Rs 19,000 per tonne. If we buy maize at Rs 15,500 per tonne and incur a minimum conversion cost of Rs 4,000 per tonne, we do not earn any profit at the present price,” said Sardana.

In the last five years, there has been a substantial capacity addition in the industry. Of the total capacity of two million tonnes, 25 per cent is meant for exports. But the slowdown in Europe has created a big dent on the export demand. Exporters are now trying to liquidate their stocks in the domestic market that triggered a price reversal of starch here,” he added.

Indian starch makers have been advocating sowing of high quality maize seed so that the recoveries are better as in the case of US maize. But farmers prefer replanting old seeds year after year. This leads to low yield and poor recovery of starch, said Sardana.

The Indian starch industry is also facing a stiff competition from China. Offering starch at more competitive price than India, Chinese exporters have been able to grab the market share of Indian exporters, said Sardana.

Source: http://www.business-standard.com/

August 01^st 2015

Plan these Starch Events in 2016.

To be put on your calendar following Starch Events for 2016:

– 5th Starch World, January 26th & 27th 2016, Bangkok (Thailand);

– 67th Starch Convention, April 13th & 14th 2016, Detmold (Germany);

– 11th Starch & Starch Derivatives Exhibition, June 21th, 22nd & 23rd, Shanghai (China).

Check this website reguraly to stay informed on the lastest details. And maybe we meet one another there.

July 15^th 2015

Avebe rolls out new branding.

Dutch potato optimisation specialist Avebe, which gets the most out of the starch, protein and fiber in the pototo, has unveiled a new logo that marks a new phase in its development.

The organisation has been in development for nearly 100 years; not always to become more or bigger, but always to be better, it says. In the past the central focus was on extracting starch from potatoes, but following innovative developments, proteins for the food industry now take up an important position. Yet Avebe believes there is more.

An Avebe spokesperson told FoodIngredientsFirst: “Our mission is to extract all value from the potato. We are constantly investing in knowledge and skills to extract this value. An example is our potato protein Solanic for human consumption. But also process optimization, which allows us to produce cleaner and more sustainable, is important in this optimization process.

“We invest in know-how to create sustainable solutions for today’s customer demands to help our customers to make a difference in the market. Again, an example here is our potato protein Solanic. With our vegetable protein we respond to a growing demand for high quality proteins. And for example our Etenia brand can be used to replace gelatin.”

During the coming period the company will continue to work on further innovation and development in order to extract maximum value from potatoes. Achieving optimum returns for its members is always at the heart of the operations.

“We are always busy developing new potato based solutions,” said Avebe. “At Food Ingredients Europe, next December in Paris, we will show some new concepts.”

The company says that all of this requires a new house style that will be rolled out gradually worldwide. A symbol to show where Avebe is heading without losing sight of its roots.

Source: http://www.avebe.com/news/

June 23^rd 2015

Avebe Helps to Make Creamy Low Fat Products a Realityin Western Europe slowed down.

Dutch potato starch specialist Avebehas launched Elaine GEL 100, a potato starch with unique properties that allows food manufacturers to create high quality, creamy and indulgent fat reduced soups, dressings and sauces.

With Elaine GEL 100, up to 50% fat reduction can beachieved, while retaining a buttery mouth feel and excellent taste. Besides theunique benefits on taste and texture Elaine GEL 100 is also easy in processing with a high sheer resistance. Elaine GEL 100 works both in cook up powder mixes and in UHT processed soups and sauces.

Avebe’s Market Manager Christer Andersson said: “We have developed a unique new starch that gives our customers the opportunity to develop healthier but still very tasteful products. Customers asked for the combination of excellent taste and less fat for long time. The health trend is going on for quite a while now but with this latest development from Avebe it is proved that health and good taste can be combined.”

Elaine is a ‘waxy potato’ starch containing more than 95% amylopectin which allows preparation of foods with unique functionality, textures, expansion characteristics and cost saving opportunities. It is the world’s first amylopectin potato starch obtained through traditional breeding techniques.

Health and wellness trends encourage consumers to look for lower fat and reduced cholesterol versions of familiar full fat products – but withoutany reduction in quality, texture or taste. Avebe offers food manufacturers a range of solutions for reduced fat, premium quality and great performance.

Source: http://www.avebe.com/food/News.aspx

May 31^st 2015

The use of starches in new product launches tracked in Western Europe slowed down.

The use of starches in new product launches tracked in Western Europe slowed down, with a slight 0.4% decrease reported when comparing H1 2013 and H1 2014. The top category for tracked launches in the region is cooking sauces(8%), with modified corn starchbeing the leading ingredient among the ingredients tracked, however not within the top 5 for fastest growing starches. The highest growth rates reported are for modified rice starch (+80%), modified cassava starch (+55%) and starch sodium octenyl succinate (+38%). Passive health claims are dominating in new product launches tracked containing starches in Western Europe, with “no additives/preservatives” and “allergy” as the fastest growing health claims.

As reported by Innova Market Insights.

Source: http://www.innovadatabase.com/home/index.rails

May 17^th 2015

ADM grows sweetener business in China with agreement to purchase Meiweiyuan Biotechnology.

Acquisition offers strategic expansion into key central and western Chinese markets.

Archer Daniels Midland Company (NYSE: ADM) announced today that it has reached an agreement to purchase Meiweiyuan Biotechnology Co., a privately held sweetener manufacturer near the city of Wuhan, in the central Chinese province of Hubei.

“This acquisition helps further expand our footprint in regions with growing demand for our products,” said Chris Cuddy, president of ADM’s Corn Processing business. “Last November, we were excited to begin production at our new sweetener facility in Tianjin, which is allowing us to serve major customers in the northern part of the country as well as Asian export markets. Now, we are expanding to better meet demand for starches and sweeteners from customers in central and western China. This is another example of how ADM is looking for—and seizing—great opportunities for profitable growth.”

The proposed acquisition is subject to regulatory approval. ADM hopes to complete the transaction in the coming weeks.

ADM also announced that it has signed a memorandum of understanding with the government of Hanchuan County, Hubei Province, in which the government commits to supporting ADM’s investment and its future expansion in the region.

“The Chinese government has called for increased investment in central and western China,” said Ismael Roig, ADM’s president, Asia-Pacific. “We see great opportunities in the region, and strongly believe that this acquisition will help to create value for customers, communities and our company. We expect this investment to meet our returns objectives.”

Source: http://www.adm.com/en-US/news/Pages/default.aspx

May 05^th 2015

Emsland Group presents the latest innovations to international representatives.

The world is coming to Emlichheim. The Emsland Group has once again invited guests from all over the world to attend the so-called ‘Food Meeting’. On April 28 – 29, 2015, the representatives of Emsland Group’s worldwide subsidiaries and agencies where presented the latest product innovations live. The combination of practical workshops and theoretical presentations allow participants to gain deep insight into the research and development work on location. The lively exchange of market information and application possibilities is thereby strongly encouraged.

The Emsland Group has been under new management since the turn of 2014/2015. Mr. Udo Hinkelmann was introduced in December 2014 and Mr. Gerrit-Jan Wesselink in January 2015 as the new managing directors. With Mr. Peter Höning as the new CFO, the holding side of the company is now complete as is the operational management board.

From the outset, the new executive board left no room for employees or customers to doubt that the Emsland Group’s proven strategic direction will remain unchanged and the successful projects and initiatives will continue.

As Germany’s largest potato starch producer, the Emsland Group develops innovative and sustainable solutions in the fields of food products, technical specialties and pet food. Starch and processed products, special derivatives, proteins and fibers are produced from regional potatoes and peas. These optimize everyday products, from the fries in the deep-fryer to the paper in the printer, and all the way to the food you feed your pets. Thanks to the innovations from the Emsland Group consistency, texture, spatter behavior and density of many different products can be improved naturally.

The new management continues to uphold the Emsland Group’s policy as a “green company” with consideration and foresight for the environment. Participation in the trainee project “Energy Scouts” designed to train young professionals in the company on how to save energy, as well as the company’s participation in sustainability ratings by the non-profit organization CDP (“Carbon Disclosure Project”), which campaigns for transparent greenhouse gas balances, reflect the Emsland Group’s commitment to sustainability.

The Emsland Group’s guiding principle “using nature to create” has not only been strongly adhered to in Germany, but also worldwide for many years now. The company has representative offices and agencies in more than 100 countries. The Food Meeting is a means of international exchange and contributes to the strong cooperation existing within the Emsland Group.

The entire Emsland Group team is dedicated to looking forwards. Awards such as the Supplier Award from Nestlé Deutschland AG, a key customer of the Emsland Group, encourage the employees in their daily commitment. In the future, the company plans to hire even more trainees and promote more young talents. Young, motivated people receive a sound education at the sites of the Emsland Group that provide them with excellent opportunities for a career in business both at home and abroad.

Source: http://www.emsland-group.de/en/news/news.html

April 28^th 2015

Cargill acquires OPX Biotechnologies’ fermentation technology.

Cargill has acquired Colorado-based OPX Biotechnologies’ proprietary fermentation-based processes and systems. These technologies are used to produce bio-based chemicals from sugars for use in non-food applications such as lubricants, detergents, plastics, agrichemicals and personal care products.

Cargill is already a large supplier of carbohydrates and other biotech offerings. This acquisition further expands its presence in commercial fermentation products outside of food and feed.

“Our customers that make products in any of these categories will benefit from this technology acquisition because it will enable us to produce more and better solutions for them than they can get from any other company,” said Cargill Corn Milling vice president, Brian Silvey. “It will also make bio-based products with extensive functionality more readily available than ingredients produced using petroleum-based or tropical oils.”

OPXBIO will support the transition to Cargill over the coming months.

“This sale of OPXBIO’s technology to Cargill demonstrates the great progress OPXBIO has made towards product commercialization,” said Mike Rosenberg, CEO of OPXBIO. “Cargill has all the right capabilities and experience to deliver products produced from OPXBIO’s technology to customers.” DecisionPoint Advisors acted as advisor to OPXBIO for this transaction.

Source: http://www.opxbio.com/news-center/news-releases/