What’s hot in hydrocolloids?

By Caroline SCOTT-THOMAS contact

- Last updated on GMT

Related tags: Guar gum, Hydrocolloids

What’s hot in hydrocolloids?
Rousselot is up for sale – but competition laws may preclude other gelatine specialists from buying it…And which ingredients are seeing the biggest price fluctuations? FoodNavigator brings you the latest in the world of hydrocolloids.

Rousselot sale

Rousselot was put up for sale by its parent company Vion late last month, and is expected to bring in about $1bn or more, according to hydrocolloids industry expert Dennis Seisun.

Seisun, who is founder of IMR International and publisher of The Quarterly Review of Hydrocolloids, said that the company was most likely to be sold to a private equity firm – and the rendering and gelatine sides of the business may be split following the sale.

“Antitrust will probably stop the majors like Gelita and PB Leiner from buying Rousselot,”​ he said. “…I think that potential buyers are likely to be interested in the gelatine business, and not interested in selling fat.”

He added that there had been a lot of interest in Rousselot, and a deal was likely to be reached at the latest by the end of the year.

“I think it will be an interesting acquisition and attract a lot of attention,”​ he said.

Gelatine prices have been climbing, as raw material availability remains tight. Global demand for gelatine has been increasing too, but rising spending power among Chinese and Latin American consumers has led to greater demand for whole pork carcasses for food – including the skin, which previously was diverted to gelatine production.

According to IMR figures, skin and hide gelatine prices are now at their highest level since the firm started tracking them 22 years ago, in 1991.

Guar prices: A new normal?

“The price situation for several hydrocolloids has become a hot topic,”​ Seisun said. “The one that use to be red hot, but is now just hot, is still guar. We are now at about $5 to $6 a kilo when it traditionally used to be $1 to $2.”

Prices for the ingredient started to skyrocket in 2010 when demand spiked from the oilfield industry, which uses guar gum in its fracking process, causing price problems for the food industry. Prices spiked at $20 to $25 a kilo.

Most people in the guar industry are of the opinion that current prices are the ‘new normal’, Seisun said, as guar has unique characteristics that make it superior to other hydrocolloids and technologies for fracking.

“The general feeling is that if guar comes back to a reasonable level, the alternatives they have found won’t be too much threat to guar,”​ he said. “If it stays between $5 to $6 a kilo, guar probably will remain the choice for the oil industry.”

Xanthan anti-dumping

There have been steep price increases for xanthan gum, particularly in the US, due to an antidumping lawsuit, which is due to be resolved shortly. Prices in Europe have not gone up quite so dramatically as in the United States, but have still risen significantly, partly in response to the US antidumping action.

Austria-headquartered Jungbunzlauer is the only non-Chinese company that is part of the action, and its duties are expected be about 18%, while proposed duties for the Chinese firms range from about 22% to 154%.

Related news

Show more

Related products

show more

The unrivalled potential of gelatine

The unrivalled potential of gelatine

Gelita AG | 03-Dec-2018 | Data Sheet

Gelatine’s multifunctional technological properties provide product developers with an unrivalled toolbox for current and future food applications. None...

Xanthan Gum in gluten-free bread

Xanthan Gum in gluten-free bread

Jungbunzlauer | 20-Sep-2018 | Technical / White Paper

Nowadays, gluten-free claims are no longer just attracting the attention of people suffering from coeliac disease. A growing number of health-conscious...

New generation of healthy baking powder

New generation of healthy baking powder

Jungbunzlauer | 14-May-2018 | Technical / White Paper

Jungbunzlauer is presenting a healthy baking powder based on microencapsulated glucono-delta-lactone with sodium or potassium bicarbonate. The combinations...

Related suppliers

1 comment

Guar prices volatility will start now

Posted by Dr Sunil Rathi,

After permission of Guar gum Trading by FMC India at NCDEX, MCX India, Guar Gum will be Again in Hands of speculators and in turn will be more and more volatile and would be rattle snake for food Industries.
No one can say that it will between 5-6usd/kg, it may down to 3.5-4 usd/mt,or up as 7-8 usd/mt again.

Report abuse

Follow us

Featured Events

View more

Products

View more

Webinars