Food Business News - June 28, 2016 - (Page 28)

A on pectin While the 'clean label' trend boosts demand, weather and processing bottlenecks limit supply ood and beverage formulators cannot seem to get enough pectin. The ingredient may serve as a thickener, a suspending agent or a gelling agent in such applications as ice cream, drinkable yogurts, fruit cups and acid-based beverages. Consumers tend to view pectin, sourced mainly from citrus peels, as a natural ingredient, too. Recently though, poor crops and processing bottlenecks are keeping supplies low and prices high. High methoxyl (H.M.) pectin was priced at $9 per lb in the latest IMR Quarterly Review of Food Hydrocolloids, which was more than double its price about a decade ago. Low methoxyl pectin (L.M.) was priced at $10.60 per lb. Dennis Seisun, founder of San Diegobased IMR International, which focuses on the hydrocolloids market, has produced the quarterly review for 25 years. He said pectin's use in applications generally ranges from 0.1% to 0.5%. "It's not a huge thing, but at $10 a lb, when put into a yogurt or an ice cream, the price of pectin per lb is more than any of the other basic ingredients," he said. F Waiting on this year's crops Pectin is sourced from the lemon crop in Tucumán, a province in Argentina, and from a lime-type of citrus around Tecomán, a city in the state of Colima, Mexico, Mr. Seisun said. Poor lemon crops in Argentina have adversely affected the pectin supply in recent years. "Unless you have a contract, there's really not that much available," he said of citrus pectin. While a freeze in Argentina damaged 28 FOODBUSINESS NEWS ® the lemon trees in 2014, a disease called citrus greening "devastated" the lime industry in Mexico that same year, said Karen Silagyi, product manager for TIC Gums, Inc., White Marsh, Md. The next lemon crop in Argentina should start appearing in July-August, Mr. Seisun said. Harvest should be completed in September-October. A good crop, even if it does not make up for the supply shortfall, should at least bring the pectin situation closer to normal. Consumer demand for fresh lemons and limes will affect pectin's price, too. "The availability of peel depends on the demand for the lemon oil and the lemon juice and most important, the demand for the fresh fruit," Mr. Seisun said. Albert Cianci, product line manager for functional systems and hydrocolloids in North America for Cargill, said, "The first use of lemon and lime and orange is always going to be fresh first and peel second." Once the citrus is harvested, processing facilities are needed to create H.M. pectin and L.M. pectin. "We're seeing ongoing challenges regarding capacity," Mr. Cianci said. "For a couple years, we were having problems with raw material, the peel. As that problem has stabilized - it hasn't really gotten better, but it has stabilized with the last good crop, and we're expecting another good crop this year - we still see demand outstrip the existing capacity to refine that (peel) into pectin." Efforts are under way to build more processing capacity and alleviate the bottlenecks. "Several manufacturers have announced capacity expansion projects June 28, 2016

Table of Contents for the Digital Edition of Food Business News - June 28, 2016

Food Business News - June 28, 2016
What will Brexit mean for U.K. food and agriculture?
Obesity rate rises as sweetener use declines
Beverage Business News - Protein on trend in R.-T.-D. beverages
Table of Contents
Web Contents
Editorial - Market fragmentation intensifies C.P.G., retail competition
Coca-Cola invests in organic aloe water beverage maker
Dunkin’ Donuts evolves with expansion of beverage portfolio
Philadelphia passes tax on caloric, diet beverages
Post said to be considering combining with Lamb Weston
Teasdale adds to private label portfolio with purchase of Mesa Foods
CVS to expand selection of healthier foods, will add to private label line
Monster moving beyond energy beverages with debut of Mutant, Hydro
Coca-Cola changing its soft drink strategy to focus on ‘shaping choice
McDonald’s to relocate corporate headquarters
Smucker earnings soar on coffee sales, pet food acquisition
A squeeze on pectin
Picking out pectin alternatives
Kellogg launches $100 million venture capital fund
Kellogg adds Pure Organic to Kashi portfolio
TreeHouse Foods profiles the changing private label consumer
Martha Stewart enters meal kit market with delivery subscription service
B&G Foods ready to ‘fight back’ in frozen food aisle
Washington - Audit finds F.D.A. must improve food recall process
Snack Trends - Key trends unveiled at Sweets & Snacks 2016
Crispy, convenient and gluten-free
When gluten-free orders get serious
Company profile - WhiteWave Foods eyeing $3 billion in additional U.S. plant-based foods sales
WhiteWave’s Earthbound Farm brand set to soar in fresh and frozen
Industry Images - Record attendance at 2016 Purchasing Seminar
New Food Products
Ingredient Market Trends - Post-eleventh hour compromise on G.M.O. labeling
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - June 28, 2016