Food: Product News
Due to ongoing scarcity, there have been huge price increases in the market, and these currently remain at a high level. Furthermore, two of the four major carnitine producers are unable to produce as a result of their failure to comply with the strict Chinese environmental constraints. The remaining manufacturers are currently producing only under certain conditions. We expect to see a consistently high price level for carnitine over the coming months.
The prices for vanillin remain stable at a low level. Many market participants expected to see prices rise, because there are currently shortages of the petrochemical raw materials for vanillin. Contrary to expectations, however, prices have remained consistently low, since many manufacturers are offering their existing stocks of vanillin. If the scarcity of raw materials continues over the course of the year then the low prices cannot be guaranteed. We expect to see a price increase for Chinese and European goods over the coming weeks.
The cultivation of maca is decreasing every year, since the low sales prices of the raw ingredient means cultivation is no longer profitable for many farmers in Peru. In some cultivation regions of Peru the sales price is lower than the cost of production of the raw material. There are currently still existing stocks of maca available, which have been built up over the last few years, but as the stocks decrease, we expect to see the first signs of a price rise in April/May 2019. March is therefore an appropriate time to stock up as needed.
The market for amino acids is very stable in general thanks to good availability from China. The sole exception right now is glycine: The product is subject to slight price rises, which are likely to become greater over the course of the year. The reason for this is the high demand in the market for technical glycine for the production of glyphosate and as a basis for food-grade qualities. We assume that prices will rise again notably and will only fall around the end of 2019. We therefore recommend agreeing contracts as soon as possible and covering your annual demand of the product.
Please do not hesitate to contact me if you have any questions.
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