23rd Edition of Foodcom PLANT-BASED Newsletter
The emotions after the EuroTier event are slowly subsiding. You met a strong Foodcom representation at the show. Our representatives told us that there are many signs that more is about to happen in the feed market. Well, it’s an interesting time to wake up from hibernation, but it’s clear – the sooner the better, so we will keep a regular eye on what’s happening.
Recently, we have developed a new theory about how the world works. If you look at the increasing popularity of instant foods, you will find out that almost no one cooks for themselves anymore. Is that a good thing? Certainly good for Modified Starches, which are used to produce ready-to-cook meals.
And what is happening in the field of plant-based products? Quite a lot. Strict regulations on the use of nitrogen fertilizers in the European Union and the drought this summer have affected the quality and quantity of wheat. The decline in cow numbers is resulting in lower production of natural fertilizer. Someone might suggest that work should be done to increase the efficiency of the production of natural fertilizer by cows… Any ideas?
Joking aside, we continue to watch the war in Ukraine with concern. The war and its effects, such as the destruction of infrastructure, are affecting all industry and food security around the world. The scale of the destruction means that export problems are likely to continue long after the end of hostilities. For now, Ukrainians must brace themselves for a dark, cold winter.
Vital Wheat Gluten
Vital Wheat Gluten remains a hot topic because there is no good substitute on the market that can satisfactorily replace this product. The demand for the raw material is high. There are reported problems with the protein content in wheat due to the stricter standards for the use of nitrogen in fertilizers in the European Union, which will negatively affect the availability of the product on the market in the near future. Not insignificant for the quantity and quality of available wheat are the droughts that hit many countries this summer. Lack of energy is causing production standstills.
Native Corn Starch
Due to the ongoing conflict in Ukraine, Corn Starch volumes on the market are at risk. This is due to power outages and the ongoing destruction of infrastructure in Ukraine. The problem is exacerbated by droughts in Serbia.
Modified Corn Starch (for warm applications)
There is strong demand for both Modified Corn Starch for warm applications and the variety used for cold applications. Major producers have sold out of the product months in advance.
Modified Corn Starch (for cold applications)
As for the variety used for warm applications, the demand for this product is high. The very limited availability of the variety for cold applications is due to the use of the warm variety for its production.
Native Potato Starch
The price continues to rise as the market experiences shortages. The unusually dynamic market situation creates extreme price uncertainty. Due to much lower potato crops than in previous years, Native Potato Starch is currently the most expensive of all, more expensive than that extracted from wheat and corn. Many producers are sold out, and producers in Poland have stopped production altogether due to the potato shortage. Luckily smart market players (hello, how can I help?) have secured volumes for the first quarter of next year.
Modified Potato starch
The market situation of the product is similar to that of Native Potato Starch, and even worse, as Modified Potato Starch is produced from it. The demand is high, as people cook less and less at home, and ready meals for reheating are becoming more and more popular. Therefore, their manufacturers are eagerly looking for modified starches such as E1404, E1422 and E1442.
Native Wheat Starch
Demand from paper manufacturers for Native Wheat Starch is increasing. At the same time, there is not as much surplus on the market as there was a few weeks ago. It is definitely worth keeping a close eye on the situation with this product.
Corn Gluten Meal
The demand is growing quickly. In the near future, the product and its price will undoubtedly be affected by the ongoing war in Ukraine and the problems arising from the destruction of infrastructure. A very important factor affecting the product was this year’s drought in Europe. At least one of the major players is sold out until July 2023.
Currently, buyers are trying to digest the high prices. And digestibility is exactly what Potato Protein is all about, because it is the only protein that animals can absorb up to 90% of the protein they consume. This, in turn, makes feed and pet food containing this protein premium products. Although in times of crisis, sales of products in this category usually decline, here we can expect an exception to the rule, because who would deny their beloved dog food of the highest quality?
Demand for Potato Flakes is constantly high due to the product’s extraordinarily diverse uses. These include the production of frozen goods as well as its use in baking as a freshness retention agent or in the production of instant soups and sauces as a thickening agent. As with other potato products, availability is limited and high energy prices drive up production costs.
Soy flour NON – GMO
The market for soybeans is generally stable because they are a good and inexpensive source of protein for animals. Recently, the non-GMO variety has gained popularity. This trend is likely to continue in the coming weeks.