Although we are undoubtedly in the middle of winter (warm greetings from Europe, if you will allow us the joke), the market for plant-based raw materials is just now waking up, especially in terms of varieties used for feed. More and more is happening, so it is undoubtedly worth keeping an eye on developments. Read on, and you’ll be up to date on everything you need to know, as always.
The last few weeks have been marked by truly wintry weather in Europe. The low temperatures have definitely put a damper on the good mood, but experts believe that they should not have a negative impact on the upcoming harvest. At the same time, Argentina is struggling with the worst drought in decades, and more and more countries and companies are working on solutions to minimize the impact of all the difficulties that 2022 has brought.
Well, that’s right, 2022 – what a year that was! This is our last 'meeting’ in 2022, so we wish you all the best. Rest well in the coming days, because a lot will happen in the next year. See you in 2023!
Natural Sweeteners
The general market situation is dominated by the search for cheaper alternatives, obviously triggered by high raw material prices. However, this does not apply to all manufacturers using natural sweeteners, because in some cases it is necessary to use raw materials from a specific country or region. When switching to alternatives of different origin than usual, special attention should be paid to the composition and heavy metal content.
In the case of Dextrose, the price stabilizes and remains high. Historically, the raw material has now reached one of its highest prices. There is no reason to believe that this trend will change in the near future. Some of the leading producers are sold out for H1 2023 or even for the entire year, especially those manufacturing a corn-based product. We predict that all glucose syrups will increase from next year. Fructose, like Dextrose, is stabilizing at a high level. The price of Maltodextrin, on the other hand, has been rising recently. The low-sugar variety is most in demand.
Native Starches
The market for Native Starches is stable. Native Potato Starch is both one of the most expensive and one of the most sought after. Demand remains strong while available quantities are low. This is due, as we mentioned earlier, to the unsatisfactory potato harvest this year. The current trend will therefore certainly continue until the next harvest. The price of Native Corn Starch also remains at a high level. Current forecasts indicate that the price will rise even further in the new year and may even exceed the price of Native Potato Starch. Demand for Native Starches with similar properties to Modified Starches is increasing because their use does not require the E symbol on the label.
Modified Starches
The demand for Modified Starches is high. Many customers who have been using Modified Corn Starch are considering switching to an alternative starch made from tapioca, but not everyone can afford to change the product formulation. The greatest demand is for Modified Corn and Potato Starches, particularly cold water soluble varieties. This trend is a result of high energy prices. There is no doubt that demand for Modified Starches will remain high due to their widespread use as stabilizers and thickeners, including in convenience foods.
Proteins
As for Vital Wheat Gluten, most producers are currently out of stock, and some are already contracting quantities for next year. Prices in these contracts are higher than Q4 2022 prices. There is a slow movement in the feed grade market, whose price is lower than the food grade price. Vital Wheat Gluten, which is used for food, will continue to be in high demand, even if prices increase significantly, as there is no good alternative to this raw material. The situation of Corn Gluten Meal is stable, demand is emerging, and the feed market for this product is expected to 'wake up.’ Meanwhile, the market for Potato Protein has awakened, there are more and more inquiries from feed manufacturers, and everyone expects the price to rise quickly.
