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Locust Bean Gum – Market Update April 2020

Unipektin Ingredients AG as your supplier and partner feels obliged to keep their customers informed about critical developments affecting the supply situation so that together we can make informed decisions and find the right solution for you.

Since our last month’s market update, the raw material situation has continued to deteriorate, while seeds are available their price has further increased to a new historically high level. This is paired with a very high and further growing demand for LBG.

Prices for a standard quality LBG of € 24 – 26 per kg are not unusual in the market right now. Our prediction for the short-term LBG market situation is that there is no easement in price to be expected for the next 6 months, the next seed crop is too far away and there are no predictions possible yet.

Demand for our LBG / VIDOGUM L is soaring which forces us to carefully plan and to sometimes restrict our sales and shipment. This, however, is only caused by production capacity limits. Availability of VIDOGUM L is secured, our factory runs at full capacity and will do so for the foreseeable future.

Now is a good time to consider switching to alternative recipes based on VIDOGUM L combined with other gums. UPI has successfully developed and introduced such systems during the past price peaks and optimized them further in light of the expected market development. These products can give the LBG users a valid technical and commercial option, reducing their dependence on LBG.

  • VIDOGUM SP: tara gum with similar viscosity like VIDOGUM L.
  • VIDOGUM LB series: LBG + tara gum, for various applications.
  • VIDOGUM LS series: LBG + neutral flavour guar gum, specifically developed and standardized for dairy applications.

If you are interested to discuss the current Market Update and our recommendations, please contact Ulrich Zuber by email uzuber@unipektin.ch or call +41 52 742 3148