Update on EU agriculture, Indian edible oil market and protein innovations [65th edition of PLANT-BASED newsletter]

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Corn gluten meal shortages are exacerbated by disruptions in global corn supplies, while demand for soy protein isolate is on the rise, driven by the growing popularity of plant-based foods. Pea protein also continues to grow, with new organic offerings meeting consumer demand for sustainable, allergen-friendly options. Stay tuned for more information, including updates from the EU and Indian edible oil market!

Let’s see what else has happened in the market recently !

Maize Gluten Flour

In August and September 2024, there were clear concerns about shortages of maize gluten meal (CGM), a key by-product of the maize processing industry used mainly in animal feed. These shortages are largely linked to wider disruptions in maize production and supply chains, exacerbated by unpredictable weather conditions, higher fertiliser costs and changes in global agricultural markets.

One factor affecting the availability of maize and its by-products, including maize gluten, is the strain on global grain supplies caused by the war in Ukraine, which has led to a significant increase in the cost of producing crops such as maize. In addition, growing demand for alternative maize products such as bioethanol is further diverting supplies from feed production to the energy sectors.

Soy protein isolate

As of September 2024, the soy protein isolate (SPI) market has experienced a period of growth driven by increasing demand for plant-based proteins, particularly in sectors such as meat alternatives, baby food and functional foods. The global SPI market is projected to reach US$3.67 billion by the end of 2024, growing to US$8.57 billion by 2034.

Additionally, the cost of SPI is impacted by global supply chain issues, including shipping delays and rising transportation costs from key manufacturing areas such as Asia. Despite these logistical challenges, SPI remains a cost-effective and environmentally sustainable alternative to animal-based proteins, making it an attractive option for both consumers and producers looking to reduce their environmental footprint.

Pea protein

As of September 2024, the pea protein market continues to grow, driven by increasing consumer demand for plant-based and sustainable protein sources. One significant development is Roquette’s expansion of its pea protein range, which includes new products designed as alternatives to dairy and meat. These products are sourced from organic peas in Canada and emphasise full traceability from farm to product, ensuring the highest quality. This is in line with consumer preferences for organic, non-GMO and allergen-friendly protein options.

Pea protein is considered a hypoallergenic, easily digestible protein, making it suitable for a wide range of dietary needs. Additionally, its lower environmental impact compared to animal-based proteins, especially in terms of land and water use, makes it an attractive option for companies and consumers focused on green choices.

New innovations in the sector, such as blends of pea protein with other plant proteins (e.g. rice), are also entering the market, aiming to improve the protein profile and texture of dairy and meat alternatives.

What else?

Financial support for farmers in the EU: further progress with CAP funds and a new direction in agricultural policy

From 16 October 2024, farmers in the EU can receive higher advances from CAP funds – up to 70% of direct payments (instead of 50%) and up to 85% for area and animal interventions. The decision is intended to help farmers facing financial difficulties due to harsh weather conditions and rising production costs. A recent European Commission report proposes the promotion of a plant-based diet, improved relations with farmers and higher animal welfare standards, supported by public funds.

Increased demand for edible oil in India despite higher tariffs: Forecasts 2024-2025

Demand for edible oils in India is expected to grow at a rate of 2-3% per year, despite the recent increase in import tariffs on crude and refined oils. This growth is driven by both a growing population and greater prosperity of the Indian population. In response to low oilseed prices, the Indian government raised import duties by 20% to protect local farmers. Despite this, edible oil prices remain affordable, stimulating further growth in consumption, especially ahead of the festival season. Patanjali Foods Ltd CEO Sanjeev Asthana predicts that palm oil imports will increase to 9-10 million tonnes in the 2024-2025 marketing year, while sunflower oil imports will reach a record high of 3.6 million tonnes, mainly due to abundant supplies from Russia and Ukraine.