Food Business News - August 16, 2011 - (Page 37)

Ingredient Innovations Inside the The oil industry’s use of guar gum has food processors considering alternatives guar gum bubble of which are grown in India and Pakistan, he said. “Basically the oil people are big buyers, big spenders,” he said. “They go to the guar suppliers and say, ‘What’s your price, and give me all you got.’ The food industry is getting left behind.” Before this year, the previous high of $1.48 a lb for food grade guar gum came in 1998. Now in the summer of 2011, food grade guar gum prices are running $2.50 to $3 a lb, Mr. Seisun said. Food manufacturers use guar as a thickening, texturizing, moisture-binding and freezethaw stabilizing agent, said Joshua Brooks, vice-president of sales for Gum Technology Corp., Tucson, Ariz. “It builds viscosity rather quickly and is all-natural,” he said. “It also synergizes with other gums such as xanthan gum. Therefore, when pricing was lower, it was a great choice for a formulator — a go-to hydrocolloid.” Guar gum is a viscosifier commonly used in beverages, baked foods, dairy products, a range of desserts, and dressings and sauces, said Lorna Macfadyen, North America technical director for Cargill Texturizing Solutions. Guar gum typically is used at 0.2% in applications, she said. Its use, depending on the application, may be as high as 1% and as low as 0.1%. Xanthan gum and locust bean T he oil industry’s increased use of guar gum has driven up its price, leaving food and beverage processors struggling to find supply of The oil industry began using greater volumes of guar gum in 2010. the ingredient used in such applications as ice cream and tortillas. Xanthan gum, locust bean gum, tara gum and even flaxseed are showing promise as alternatives to guar gum. “The market has basically tripled over the past year,” said Chris Freeman, functional systems and hydrocolloids product manager in the Americas for Cargill Texturizing Solutions. Prices of food grade guar gum, normally below $1 per lb, have risen above $2.50 per lb because of the oilfield industry’s use of guar gum, according to a July 28 “Hydrocolloid News” e-mailed report from IMR International, a hydrocolloid consulting company. According to the report, buyers of food grade guar gum are facing prices of more than $5.75 per kilogram ($2.61 per lb), delivery times of four to six months and, in some cases, demands to pay in advance. “The guar situation has reached dire circumstances,” the report said. “Unless there is a paradigm shift in technology for the oilfield industry or a shift in policy away from hydraulic fracturing, there is no end in sight for the current guar shortage. In the meantime, both producers and users of food guar are scrambling to find substitutes or extenders to guar.” The oil industry always has used guar gum and started using a much larger volume in 2010 because of horizontal drilling techniques in shale gas and oil formations, said Dennis Seisun, founder of San Diegobased IMR International. Guar gum comes from plants, most Guar gum offers several processing benefits, including being a stabilizing agent in such applications as ice cream. August 16, 2011 FOODBUSINESS NEWS OOD USINESS EWS OD SINESS EW WS ® 37

Table of Contents for the Digital Edition of Food Business News - August 16, 2011

Food Business News - August 16, 2011
Ralcorp to buy Sara Lee refrigerated dough business
Whey protein’s emerging mass appeal
Gluten-free labeling in the spotlight
Web Contents
Editorial - Search for insights in P.&G.’s farewell to food
Nestle profi t down in fi rst half of year
Sara Lee income up sharply in year
Pilgrim’s Pride’s second-quarter earnings plunge
Snyder’s-Lance swings to loss in quarter
Consumers taking active role in beverage trends
Cargill recalls 36 million lbs of ground turkey
Consumers more concerned with fat, calories than HFCS
Investment group partnering with Kettle Cuisine
Smart Balance purchases gluten-free food company
Sunsweet acquires Function Drinks
Kraft's big Split
Additional amicable separations
Ralcorp to buy Sara Lee refrigerated dough business
Ralcorp net down on impairment charge
F.D.A. warns Lazy Larry brownies are unsafe
Cott income climbs 19% in second quarter
Lower salad volumes contribute to loss at Chiquita
Restaurant Performance Index above 100 in June
Cost and taste remain barriers for functional foods
Sugar prices strong as supplies tighten
Gluten-free labeling in the spotlight
Health and wellness remains at the heart of oil innovations
Inside the guar gum bubble
Use hydrocolloids to save on costs
Dairy Business News
Conditions remain diffi cult for Dean Foods
Dean Foods suffers loss after litigation charge
Whey protein’s emerging mass appeal
Adding ethical value
Dannon adds Greek Oikos to portfolio
Caribou adds ‘Grown-up Grilled Cheese’ to menu
Beech-Nut to co-brand baby food with Mott’s
Earth’s Best expands Sesame Street line
Popchips introduces jalapeño variety
Kettle Brand launches reduced-fat chip line
Tropical fl avor line extends beyond familiar
SunOpta completes purchase of juice company
Spicetec names director of marketing
Carton protects fragile products
GPC hires scientist, sales representative
F.D.A. has no objection to krill oil’s GRAS status
Birko to buy maker of washing, pasteurizing systems
Ingredient Markets
Ad Index
Food Business in the News

Food Business News - August 16, 2011