Danisco counters rising commodity prices

Global price increases affecting commodities such as wheat, gluten and vegetable oils are having a strong impact on the food industry. With no sign of a let up in the upward price trend, Danisco has developed new emulsifier solutions to help food manufacturers absorb the higher costs and limit the price rises passed on to consumers.

The new solutions also counter the increasing world prices for emulsifiers - a direct result of the higher cost of vegetable oils.

Regional emulsifier director Europe at Danisco, Dorte Petersen, points to a number of opportunities to cut down on expensive raw materials in food applications without compromising on the taste, texture, appearance or shelf life of the final product.

“We realise our customers are facing a tough situation with further increases in vegetable oils and emulsifier prices in sight,” she says. “Price increases of at least 10% are expected in the global emulsifier market. However, for food producers this increase has a minor impact. A much more severe issue is the general increase of commodity prices, which impacts the cost of the food product much more. We are therefore focused on developing emulsifier solutions that can lessen the impact of these increases on the total food formulation.”

In margarine and spreads, new solutions are available that allow the vegetable oil content to be reduced and replaced with water. Other emulsifier solutions target gluten reduction in bread while maintaining a high bread volume.

Alternatively, Danisco’s emulsifier technology can enable capacity improvements by increasing throughput on food production lines.

 “No one dares risk their brand by compromising on quality, so we are seeing an increased demand from our customers to tap into our competences within these areas. As we are just as affected by these increases in raw material prices as our customers, we are committed to finding a way round them,” Dorte Petersen adds.

Palm oil prices have doubled since 2005 and are at a historic high. Along with this, speculations regarding the use of vegetable oil crops as biofuel, the emergence of new applications and growing demand from India and China are largely responsible for the spiralling prices of key commodities.

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