Topics in this issue:

  Merry Christmas!
  Biofach 2019
  Proteins at Neupert Ingredients
  Market report Xanthan
  Market report Locust bean gum
  Market report Guar gum
  Market report Sodium diacetate

Merry Christmas!

We would like to thank all our customers and business partners for the trustful cooperation this year. We look forward to continue working successfully with you.
We wish you and your families a quiet and reflective Christmas time, happiness and health for the coming year.

Your team at Neupert Ingredients
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Biofach 2019

From February 13th to 16th 2019, the world's leading trade fair for organic food opens its doors to trade visitors from all over the world. The Biofach is considered THE meeting place of the organic industry. Neupert Ingredients is once again exhibiting the latest trends in the world of organic ingredients.
Visit us at our booth number 224 in hall 9.
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Proteins at Neupert Ingredients

Vegetable proteins for processing in food products are becoming increasingly important. With the vegan movement the search for alternatives to animal protein sources began. We have expanded our range and now offer a variety of proteins.

  • Pea protein
  • Soy protein
  • Sunflower protein
  • Rice protein
  • Almond protein
  • Pumpkin protein
  • Chia protein
  • Hemp protein
  • Tigernuts flour
  • Coconut flour
  • Sweet lupine flour
  • Teff flour

We are pleased to announce that we have acquired the exclusive distribution for rice protein products with the renowned producer Wuxi Jinnong Biotechnology Co., Ltd.

We have successfully traded these products in recent months due to the high quality and reasonable prices. In order to intensify the cooperation and to be able to offer our customers an optimal product, we have chosen this form of cooperation.

Wuxi works closely with the Jiangnan University (Chinese food science and technology institute of food and food fermentation technology), where they receive all kinds of technical support with access to R & D activities.

The rice proteins are produced on modern production facilities using own process patents. For the further development of rice protein products and it's applications Wuxi works in close cooperation with the university.

  • Rice protein powder
  • Rice protein powder, brown
  • Organic rice protein powder
  • Organic rice protein powder, brown
  • rice starch
  • Hydrolyzed rice protein

For any questions regarding the products and applications, please contact our sales team.

We look forward to receiving your inquiries.
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Market report Xanthan

Deliveries of Xanthan gum had been delayed in the last few weeks.
However, this had no influence on our ability to deliver and to fulfill our contracts as we constantly keep sufficient stocks in Hamburg.

The reason for the delays was due to the fact that the Chinese producers mainly produced and shipped orders to the United States to fill up warehouses with Xanthan gum before Mr. Trump's punishment tariffs came into force.

Meanwhile, however, it can be noted that the tariffs have no influence on the quantities delivered to the USA. Despite the 25% tariff surcharges, the price gap between American and Chinese producers is still large enough to stay with Chinese Xanthan gum. As a result, the American customers pay the additional costs.

The price increase this year has been fully enforced but we see no sign at this stage of a further increase. However, price forecasts are difficult to predict as the Chinese producers often enforce price adjustments conspicuously at more or less the same time despite competing heavily with each other.

It is advisable to conclude contracts for 2019 these days.

Dietmar Neupert

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Market report Locust bean gum

The high prices for locust bean gum in recent months have shocked the market.
Therefore, all hopes were on this year's crop, which was predicted good in terms of volume and quality.

After presenting the numbers for the crop yields, great disillusionment has occurred.
The largest growing area in Morocco reported significantly lower quantities and the other growing areas in the Mediterranean region are below expected figures, too.

Before the harvesting season was over in August/September/October all market participants expected prices to fall sharply to a normal level.

In fact, the world‘s largest consumer of locust bean gum has contracted a significant percentage of this year‘s harvest at high prices. As a result, the kibblers deliver only limited amounts of seeds to the producers of the flour. Prices have currently a bit lowered, but are considerably higher than in previous years and much higher than forecasted.

It is very unlikely that prices will come down in the near future. We therefore recommend to conclude contracts for shipment for the first quarter or even for the first half of 2019.

In recent discussions with the producers in the Mediterranean area, we got the impression that we will have to live with high prices again for the whole coming year.

The availability of organic locust bean gum is safe, but the quantities are too small to achieve better prices.

Sabine Justiz
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Market report Guar gum

Prices have increased significantly in recent weeks.

Relatively reliable sources had predicted a further increase from about 90 Rupees to up to 120 Rs.
In fact, they went up to 102 Rs. and fell back to about 90 Rs. during the last few days.
These moves demonstrate the volatility of this commodity and the difficulty in making accurate statements for months in advance.

Guar prices are determined by the supply situation, the availability of seeds, by the demand and here especially by the oil and gas industry and activities of speculators.

It should be noted that the supply of seed is not sufficient to enforce significant price reductions. The farmers have grown guar in smaller quantities as they achieve better prices / margins by growing other planted products. Crop yields in October / November are below the levels of the previous year.

We therefore expect stable prices at today’s level, but in all probability a slight increase in the first quarter of 2019.

Organic Guar gum has seen a large increase in prices. Due to financial difficulties of the major and largest producer, deliveries have been completely cancelled for several months. The only remaining producer can serve the market in quantity and quality, but with long delivery times and high prices.
Another producer will not be able to deliver organic quality until the next harvest in October.
Therefore, we recommend to cover the needed quantities for 2019.

Alexei Justiz

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Market report Sodium diacetate

The demand for sodium diacetate remains very strong.
In recent weeks, however, there have been shortages in deliveries from China due to temporary closures of the manufacturing plants.

These measures were ordered by government agencies for environmental reasons. We are increasingly aware of such unpredictable actions in China and are therefore further expanding our stock levels in Hamburg in order to be able to deliver at all times.

In the coming weeks, further rising prices can be expected due to increased costs for basic raw materials.

The Chinese government is drastically tightening environmental regulations, forcing many producers to make substantial investments in the plants to fulfill tougher regulations, which in turn affects prices.

Taking into account the current market prices and the prospect of continued high demand for sodium diacetate, it is advisable to cover the medium-term demand.

Alexei Justiz

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Neupert Ingredients GmbH
In der Boerse 9 | D-21441 Garstedt | Germany
Tel.: +49 4173- 51591 - 0 | Fax: +49 4173 51591 - 99
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