15th Edition of Foodcom PLANT-BASED Newsletter
The noticeable shortage of sugars on the market continues. As we reported in our previous issue, some supermarket chains in Poland have begun rationing sugar sales after a rush of consumers fearing shortages and price increases thus emptying shelves in retail stores. Although specialists are certain it was only fear of further shortages that envoked later stages of the disruption, the issue also affected other parts of the supply chain. Manufacturers are struggling to produce sufficient supplies of sugar for the food and feed sectors. For this now, reason being, not enough raw materials for sugar manufacture, as the major part had been selected for the production of starches. So now commodities that are supposed to be applied in the feed industry are directed to paper manufacturing. We hear that paper is in short supply anyway – some companies are having trouble meeting delivery deadlines as they do not have the needed packaging for their goods orders. The supply chain is greatly impacted by this behavior, and further issues are to be observed.
Last week, our distributors participated in an important industry event: Biofach, the world’s leading trade fair for organic food and Vivaness, the international trade fair for natural and organic personal care. The fair has been held since 1990 and attracts crucial industry participants. Even though we are in the middle of summer, over 2000 exhibitors attended the fair was organic products. Despite the global crisis, this market is becoming more and more popular, especially among the group that targets high-quality food and cosmetics. Product origins are paid attention to by these, and resorting to solutions that seem more “organic” and environmentally friendly.
It seemed like everyone was talking about new ways to use plant-based products, and surprisingly, there was a lot of talk about tapioca. Maybe that’s a good path to discovery. Consumers may associate it with the bubble tea drink that is lately gaining a lot of popularity.
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Potato crop in Denmark and the Netherlands is in good condition but 20% less planted, the same situation occurred in Poland. Sources claim that ADM and Agrana will grow fewer potatoes for protein and starch and will attempt to produce potato flakes. They will also have less corn available for starch and glucose production.
We hear a lot of inquiries both for old and new crops. In some cases, market participants wait for quoted prices and producers do not pass them on as readily.
For organic feed, we must remember that a product that contains 2% organic protein is still considered an “organic”.
Vital Wheat Gluten
Once more, we hear a lot of requests for Q4, and even for all next year. We have to note that most big producers have a longer decision process than small companies, in terms of buying a large quantity of product.
It’s too soon to tell if the demand for organic product will increase or decrease, as we need to remember that even with a growing popularity of bio-friendly goods, we still have to face world food shortages.
Hydrolyzed Wheat Gluten
In the case of Hydrolyzed Wheat Gluten, we’ve heard about a few truck offers here and there, but we are still in the middle of summer vacation which means a slow period in late July and early August for sure.
As with all sugars, the price will be increasing, as it is hard to find it on the market. The lower supply has not stopped many buyers from being picky, as they are looking for corn-based dextrose in particular.
We have been able to observe some volumes that have found their way from other areas of Europe, previously unsuspected for a large sugar production. The product from China and India is starting to prove itself in terms of quality and is very competitive in the market.
Limited supply for prompt product, and many market participants suspect that available volumes may be booked on Q4. There is an upward trend that can provide the impetus to look for the commodity in the market.
Corn Gluten Meal
Stable market for Corn Gluten Meal, as summer period doesn’t support increase in demand of this product. We don’t need to wait for long, because after vacation people will be asking for Q4 products, and by September for Q1 of 2023. Right now however, we hear a lot of requests for Corn flour.
We can definitely observe less quantities of starch on the market at the moment, mainly because of higher energy costs. Many experts claim that the estimated harvest is significantly lower than in previous forecasts, and as we mentioned earlier a lot of starches are produced for paper manufacturers. All these conditions together have definitely influenced the prices.
Soy flour NON – GMO
The soy crop in the Balkans is extremely destroyed by the heatwave. It is estimated that around half of the crop is in bad condition.
Sunflower Protein Concentrate
The drought in the Balkans has also caused the sunflower harvest to drop by half compared to last year. At the same time, there will be no harvest at all in the south of the country, where it has not rained for three months. But not only farmers in Moldova face this problem – in many European countries the small quantities of sunflowers harvested by agricultural producers will not cover the cost of labor. All this affects the prices of sunflower products across the continent and the production of calf milk replacers.