Unipektin Ingredients AG as your supplier and partner feels obliged to keep our 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 market update from June 2020, the raw material prices have stabilized at the current and historically high level, while availability remains good. This is paired with a continuing very strong demand for LBG, as Dennis Seisun from IMR International in their latest Hydrocolloid Tidbits correctly states….
….”LBG Resilience: LBG prices are near historical highs but demand remains strong. Partly it is the clean label image and good consumer perception. Partly it is the nearly unique functionality and synergy with other hydrocolloids. Finally, it is a case of inertia and hopeful anticipation of lower prices when the next crop arrives. Reformulation work and label changes are a major hurdle to the replacement of LBG. In the meantime, at nearly a quarter of the price of LBG, tara gum prices remain attractive despite recent increases.“
Demand for our LBG / VIDOGUM L continues to soar. Our factory runs at maximum capacity ensuring the availability of VIDOGUM L.
The new season crop starting in September is expected to be on a normal and average level. The carob seed volume forecast for Morocco is average to slightly below the 2019 level. Spain and Italy are expected to have a slightly better crop, and in Portugal, an average volume is expected. Altogether we expect a similar seed quantity as last year. With the new season seeds becoming available in late September or October, it remains to be seen if there is an immediate and short-term impact on prices in Q4, 2020.
Some LBG users have made the switch to alternative recipes based on VIDOGUM L combined with other gums, while others are still considering this option. UPI has successfully developed and introduced such systems during the past price peaks and optimized them further in expectation of the market development. They can give LBG users a valid technical and commercial option, reducing their dependence on LBG.
- 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 us by email at info-unipektin@nexira.com or call us.