22nd Edition of Foodcom PLANT-BASED Newsletter
The global food situation is not easy, and there are no signs that it will improve anytime soon. In November, the United Nations Food and Agriculture Organization lowered its estimate for global grain production in 2022 to 2.76 billion tons. The FAO stressed that this is much less than last year’s harvest. The forecast revision mainly affects wheat, while the forecast for global feed grain production was slightly lowered. The adjustment for wheat is almost entirely related to production indicators in the U.S., where there was a decline in yields and a reduction in harvested area.
The major players in the delivery and parcel transportation market have announced plans to reduce the number of courses. Temporarily parking a plane or ship saves fuel and postpones maintenance on the machines, which translates into real financial savings. The carriers’ plans can be worrisome, as they are seen by many as a barometer of market sentiment, and a reduction in courses may indicate a further decline in market movement and purchases. Should you be concerned about this?
While it cannot be said that the situation is easy or that those who operate in the current market lack challenges, much depends on perspective and level of business knowledge. Times are tough, but simultaneously good for those who produce or trade plant-based products. Regardless of how difficult the situation is, both people and animals need to eat, which of course means trading in raw materials for food and feed.
Continue reading to learn about this week’s market insights.
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Vital Wheat Gluten
Vital Wheat Gluten is a product that has been surprisingly strong on the market lately. Quotations are rising to astronomical prices for the next year. The greatest demand for this product is in the United States and Germany. Demand from bakeries and manufacturers of ready-made baking mixes is noticeably increasing. This is a typical situation for this time of year due to the upcoming holiday season. In all likelihood, demand will continue to rise despite the relatively high prices.
E-1422 for cold and hot applications is in short supply and in high demand. It is currently one of the most sought-after plant-based products. Hot applications of E-1422 include sauces and ketchup, while cold applications include pudding and fruit yogurt, to name a few. Manufacturers of products belonging to these categories are eagerly seeking E-1422 on the market. E-1414 is used to stabilize fatty foods and helps emulsify fat and prevent it from separating. When added to foods, modified starch forms gels and thickens the texture without heating. The substance is used by manufacturers of sauces and fruit cake fillings, among others. E-1442 has excellent freezing and thawing properties. It is well suited for canned products such as sauces and cream-based puddings. The product is also used in frozen foods. Many food manufacturers value modified starches for their adaptation to extreme temperatures, which native starches do not have. However, it should be remembered that modified starches are made from native starches, which means that the lack of native starches on the market results in low availability of modified starches.
Native Corn Starch
In the case of Native Corn Starch, buyer interest has increased so much in the last two weeks that the quantities available in the market are not enough to satisfy it. At the same time, Corn Starches producers are threatening draconian prices for Q1 2023, and the question of whether the market will accept them remains open. Buyers are now starting to complain about the high prices.
Native Potato Starch
Polish factories are having trouble finding potatoes, leading to a halt in production, six weeks earlier than usual. Small quantities of Native Potato Starch are currently available on the market. The product continues to be the most expensive starch of all. At the same time, demand for this raw material remains high. It is mainly searched for by paper manufacturers and ready food producers, but in many cases the price proves to be too high for them. What convinces the paper industry to turn to this product in particular is the fact that Native Potato Starch is whiter than, for example, Wheat Starch, which is crucial for paper production.
Native Wheat Starch
Native Wheat Starch prices have been falling for weeks. The price is low not only compared to previous prices for this commodity, but also compared to other starches. Demand for this product is increasing among food manufacturers, while it remains weak in the paper industry.
Corn Gluten Meal
Although there are problems with the availability of the Ukrainian product on the market, the demand for Corn Gluten Meal has remained stable in recent weeks. We are seeing movement in the market, with most of the inquiries coming from aqua feed producers. Prices have risen recently, and the current market situation suggests further increases.
Currently, the availability of Potato Protein is low. Nevertheless, traders are again receiving inquiries about this commodity. Current prices are below sellers’ expectations, causing many to postpone transactions. All indications are that demand will return to typical levels for this product in the first or second quarter of 2023, while concerns about shortages in the near term are becoming real.
Potato Flakes are an extremely interesting commodity due to their wide application in various industries. As with other potato products, the market has recently experienced a great shortage with a simultaneous increase in price. Due to the high demand and growing interest of buyers, it is undoubtedly worthwhile to pay special attention to the market situation for this product.
Soy flour NON – GMO
The demand for Soy Flour NON-GMO is high. Interestingly, the price of this type of product has recently become the same as that of the genetically modified variety. The current situation allows predicting that the price of the commodity will increase by the end of the year, as the shortages of raw material from Eastern Europe are noticeable. The main customers ordering large quantities are currently from France and Germany.