As has been widely reported in the food industry news, market demand for potato-based starches seems to be at an all time high.
Supply is limited due to a number of factors including:
– unprecedented global demand
– poor harvest due to bad weather conditions
– knock-on effect from exceptional poor tapioca results
– no carry over stock from the 2009/10 season
We are working with our suppliers to ensure that we maintain the maximum allocation available to our market. AVEBE remain very supportive of us and our customers, however the reality of the current situation is that collectively, potato starch producers will be unlikely to meet 100% of their global customer demand.
As a result of competing for an enhanced allocation for the UK & Republic of Ireland and we have accepted further price increases to secure this. This will impact on pricing for March & April 2011 onwards. The products most affected by this shortage are:
– Native Potato Starch
– Dried Potato Starches
– Potato-based maltodextrins and direct starch derivatives
Modified Starch products are also affected given the raw material, however where possible we are working with AVEBE to maintain prices as indicated at the beginning of the year.
We will be contacting all customers to ensure that a) security of supply is maintained with the minimum of disruption and b) prices are held for the duration of any agreements and validity periods agreed.
It is too early to provide indications on the 2011/12 crop cycle; however it is unlikely any carry-over stock will be available to boost supply in the early harvest season.
If you have any questions, please contact James Brace on +44 (0)1789 450 131.