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Locust Bean Gum, Market Update June 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.

No easement to see: Since our last market update in April 2020, the raw material situation has become even more difficult. While sufficient seed quantities are available, their price has further increased to a new historically high level. This is paired with the continued growing demand for LBG, there are no indications for a large scale replacement of LBG.

Prices for a standard quality LBG of €22 – 27/kg are now the new normal in the market. Our prediction for the short-term LBG market and until the new harvest usually starting in September is that the current LBG prices will stabilize on the current high level, certainly, there is no easement in price to be expected

Demand for our LBG / VIDOGUM L continues to soar. Our factory runs at maximum capacity ensuring the availability of VIDOGUM L.

We expect the new crop starting in September to be on a normal and average level. With the new season seeds expected to become available in September, we don’t see an immediate and short-term impact on prices in Q4, 2020. The carob seed volume forecast for Morocco is average to slightly above average, for the other major countries like Spain, Italy and Portugal an average volume is expected. Altogether we expect a similar quantity as last year.

We continue to recommend considering 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 and providing cost benefits.

  • 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