Abstract
INTRODUCTION
Globally, the production of starch-containing crops outweighs all other
industrial and food crops. Fifty percent of the world' s average daily calorie
intake is provided by such starch crops. The manufacturing of compound feed is
also based on at least 50% starch crops, and for poultry and pigs, feeding
systems are based even more on starch-derived energy. The extraction of starch
from such agricultural commodities is one of the most important
agro-industries worldwide and recently large-scale bio-fuel programs are also
based on the conversion of starch into energy.
Globally the major commodities from which starch is derived are corn, wheat,
cassava, potato and sweet potato. Starch may also be derived from barley,
rice, and other cereals. However for the starch industry such sources are of
subordinate importance. In addition to being important food stuff, starch from
such crops has a variety of industrial uses. It is used in the food industry
as a thickener, filler and binder; to manufacture sweeteners and syrups used
in the soft drinks and brewing industry; in baked goods, confectionary and
many other food products; and to produce sugar alcohols, which are widely used
in the food and chemical industry. As a carbohydrate source it forms the basic
feedstock for much fermentation processes of chemicals.
The demand for starch and starch-containing crops has been growing strongly
for many years. This growth was accelerated in recent years and overshoots the
growth of production of starch yielding agricultural products.
The reasons behind this trend are that in many regions of the world income is
rising, which triggers the demand for meat products but also of products that
need starch as a raw material for manufacturing, such as sweeteners and
fermentation products. Additionally, the strongly increasing world demand for
energy has induced an intensive build-up of an international bio-alcohol
industry, which further adds demand for starch-containing crops. In fact the
bio-ethanol programs in North America, Europe and Asia are responsible for
demand growth rates in the past few years that have never been seen before.
As a result, annual production of the standard starch yielding crops-corn and
wheat-is no longer high enough to meet demand. Stocks have decreased, reaching
an all-time low in 2005/06. For starch-containing tubers, stocks cannot be
stored as the crops perish quickly. Also, tuber demand is increasing more than
annual production.
Consequently, industries that produce and use starch crops are faced with
increasing raw material prices; and this trend will continue in coming years.
In the past, starch crop prices fluctuated over a wide range, but available
cereal stocks could buffer upward price trends. These price increases will
induce also a change in current market conditions. Tubers, notably sweet
potato and cassava, are all rich in starches. However, they have not yet been
exploited for that purpose to the extent that wheat and corn have. This might
change as cassava in particular shows great potential for increased production
and utilization. Cassava is grown mostly in Asia, Africa and Latin America.
Starch crop users and producers are increasingly looking at cassava as a
future raw material. But can cassava really meet the future global demand for
carbohydrates?
SCOPE OF STUDY
This report contains:
- An extensive review of the historic development of starch crop production,
with respect to corn, wheat, cassava, sweet potato, potato and rice
- Historic grown rates and the dynamics of growth in various sectors
- Extrapolations of starch crop utilization and of starch in various sectors
- Global market forecast out to 2015
- A thorough profiling of important companies within the industry
- A detailed patent analysis and examination of new and upcoming
technological trends.
METHODOLOGY
The report is based on the analysis of the historic and current starch crop
markets and discusses future developments and consequences over the next 10
years in all major application segments. It unfolds therefore in two sections.
A comprehensive literature review is complemented by interviews with the
relevant starch-producing and using industry to derive a clear picture of the
current situation and how it developed over the past few years. As the starch
industry is global, such interviews were carried out with market participants
in all major areas: Europe, North America and Asia. The future demand of
starch crops was derived by estimating future growth rates of starches for all
application segments and by subsequent amalgamation of the results.
Contrasting future availability and demand indicates surpluses or deficits for
various starch crops and possible future price trends. The changing prices of
starch crops trigger changes of their use and therefore have strong
consequences for industries such as foods, feed and technical use. For each of
these sectors the impact of changing starch prices was estimated by
considering possibilities for substitution and alternative set-ups of the
industry. These scenarios were discussed with the relevant industry
participants. Ultimately the description of some of the key players in the
industry addresses the extent starch manufacturers are really prepared for a
changing raw material supplies, and for all the evolving changes in the
consumer industries.
INFORMATION SOURCES
There is an abundant literature on starches and starch crops available, mostly
discussing technical production parameters. Data and information on the
economics of starch production and on the starch-using industry is also
available. A comprehensive picture of the implications of an increasing starch
crop and starch demand compared to a shrinking supply by the traditional
sources is, however, rarely found. This study relies on the results of
extensive discussions with the relevant and concerned industries, and combines
the individual views into a coherent picture.
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