Cargill Inc will invest 550 million reais ($140.59 million) to build a new plant in Brazil in 2019 to produce the food ingredient pectin, the company said on Thursday.
Cargill said it plans to export future pectin production in Brazil to several of its markets abroad. The ingredient, which is made from citric fruits, is a texturizer used in jams, beverages, dairy products and confectionery.
Global commodities traders and food processors such as Cargill and Archer Daniels Midland Co are looking to diversify to products with higher value, as profit margins on trading of basic foodstuffs decrease with higher competition.
Companies are also looking to increase production of natural ingredients, paying heed to rising consumer demand for such products.
“The pectin market has seen strong growth for several years, primarily driven by the acid dairy drink market, as well as the growing global consumer demand for label-friendly ingredients,” Bruce McGoogan, Cargill’s strategy and innovation head for starches, sweeteners and texturizers business, said in a statement.
He said the decision to install the plant in Brazil was made considering the abundant supplies of citrus fruit in the country. Brazil is the largest producer and exporter of orange juice. ($1 = 3.9122 reais)
By Roberto Samora and Marcelo Teixeira
Source: Reuters
The facility is designed to foster innovation and deepen collaboration with customers, by offering a range of new services and solidifying its role as a central hub for customer support. Tereos’ team, supported by a network of 50 scientists, will ensure customers can innovate and meet the rising consumer demand for healthier and more sustainable products.
Glanbia has agreed to acquire Flavor Producers from Aroma Holding for an initial consideration of $300 million. Flavor Producers is a US-based flavour platform, providing flavours and extracts to the F&B industries, with a focus on organic and natural ingredients.
Lesnard, who previously worked at Nike, The North Face and Sephora, has a mission to “grow and sustain GODIVA’s position and expertise in the premium chocolate category, leveraging ongoing support from pladis to take GODIVA and its legendary chocolate to new heights.”
