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Locust bean Gum – Market Update October 2020, and LBG Alternatives.

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

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The new season harvest has commenced earlier than usual and is now in full swing. Expectations are that it will be on an average level overall, but it is too early for a reliable forecast.

Surprisingly, Carob seed prices have further increased since the new season harvest has begun. In the face of fully utilized factories and very strong demand, overall, however, there is now an expectation that prices will remain high and probably even rise further.

The current major price-drivers for LBG are the seed price and particularly the continuing very strong and further growing demand based on LBG’s specific characteristics and its excellent image as a natural product, which is absolutely justified considering the cultivation method and production process.

The price for Tara gum as a technologically viable alternative to locust bean gum has now also noticeably increased and we could see the raw material becoming short. We, therefore cannot any longer and strongly recommend to consider a 100% switch to Tara gum as a viable alternative to LBG. However, there are other options available to the food industry, and also specifically developed, optimized and standardized for dairy applications and particularly for cream cheese:

A number of our LBG users have in the past 2 years made the switch to alternative recipes based on our locust bean gum VIDOGUM L combined with other gums. 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, under the current market conditions, give LBG users a valid technical and commercial option, reducing their dependence on LBG.

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