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Locust Bean Gum – Market Update September 2020

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.

Since our last market update from July/August 2020, and with the new season harvest in clear sight, sporadical raw material deals were done at historically high prices, which further heated the LBG market price. This was also proof to the market participants that the stocks of carob seeds were getting pretty low.

The new season harvest has now commenced, earlier than usual, and is hoped to be on an average level overall. Among the major growing countries, Morocco’s harvest is said to be lower than normal, and it remains to be seen if Spain, Portugal and Italy can compensate for this. We hope the total harvested quantity of carob seeds including the other countries reaches last year’s levels, but only time will tell if this is the case?

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

Demand for our LBG / VIDOGUM L continues to soar. Our factory has been running at maximum capacity ensuring the availability of VIDOGUM L for our customers globally. Due to high demand, stable supply and very low inventories, prices will remain at a very high level. Right now it is impossible for us to predict the short-term LBG price development, but based on the current outlook, we continue to expect market prices of € 22 – 26/kg. However, if the current new season harvest proves to be lower than expected, further price increases can’t be ruled out.

A number of our LBG users have made the switch 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 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 Ulrich Zuber by email uzuber@unipektin.ch or call +41 52 742 3148