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8/21/2019 120817_Market Brief Tara Gum Final
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Market Brief for Tara Gum.
An introduction to the European market for Peruvian exporters.sippo.ch
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Title Market Brief for Tara GumAn introduction to the European market for Peruvian exporters.
Language English
Report Content Within the scope of the project Perubiodiverso, an initiative supported by the State Secretariat for Economic Affairs
(SECO) and Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH (german cooperation), in con-
vention with the Ministry of Foreign Trade and Tourism (MINCETUR), the Peru Export and Tourism Promotion Board
(Promperu) and the Ministry of the Environment (MINAM), SIPPO is mandated to support Peruvian companies in
accessing the European market.
In this context, for the following three products Market Briefs were produced with the aim to introduce the European
market to Peruvian biotrade companies:
Tara gum
Sacha Inchi
Dehydrated organic and fair trade certified Physalis
Authors ProFoundAdvisers in Development
Lange Smeestraat 55
3511 PV Utrecht
The Netherlands
www.ThisIsProFound.com
Coordinated by Osec Zurich - Business Network Switzerland the implementing organization of SIPPO (Swiss Import Promotion
Programm)
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Market Brief for Tara Gum| 3
1. Product description ...................................41.1 International registration.......................................... 51.2 Import tariffs ............................. ............................... 52. European market environment .................62.1 Market trends ................................ .......................... 62.2 Market segments .................................................... 73. Price ........................................................103.1 Price factors and pricing..................................... ... 103.2 Price structure ............................... ........................ 104. Competitor analysis ................................ 114.1 Existing competitors ................................ .............. 114.2 New entrants ................................ ......................... 114.3 Substitutes ............................... ............................. 11
5. Commercialisation channels in Europe . 135.1 Trade channels for tara gum ................................ . 136. Marketing and buyer requirements ........ 156.1 Product requirements............................................ 156.2 Supply chain management ................................... 166.3 Standards and certification schemes .................... 166.4 Legislative ............................ ................................. 167. Promotion ............................................... 187.1 Recommendations for promotion .......................... 187.2 Trade fairs............................................................. 187.3 Buyer list .............................. ................................. 188. Glossary ................................................. 19
Table of Contents.
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The plant Caesalpinia spinosa (Molina) Kuntze, or tara is a native
plant species in Peru. The local name in Europe is spiny hold-
back.
Table 1.1: Taxonomic classification by USDA
Classification
Kingdom Plantae
Subkingdom Tracheobionta
Superdivision Spermatophyta
Division Magnoliophyta
Class Magnoliopsida
Subclass Rosidae
Order Fabales
Family Fabaceae
Genus Caesalpinia
Species Caesalpinia spinosa
Synonyms Poinciana spinosa Molina
Caesalpinia pectinata cavanu-
lles
Caesalpinia tinctoria HBK
Tara spinosa
Source: USDA (http://www.plants.usda.gov), 2008
Apart from Caesalpinia spinosa, 6 other species grow in Peru. C.
ancashiana Ulibarri, C. cassioides Willd., C. decapetala (Roth)
Alston, C. glabrata Kunth, C. pulcherrima (L.) Swartz and C. tri-
chocarpa Griseb.
El cliz asimtrico, con el spalo abaxial ms desarrollado y con los dientes del pice notorios, en combinacin
con la alta densidad de espinas (especialmente en las ramas ms
jvenes), son buenos caracteres para reconocer C. spinosa en
Per (Factsheet: Datos botanicos de Tara, Botconsult, 2009).
Refer to the herbarium in Lima for more botanical information.
The fruit of Caesalpinia
spinosais a flat yellow to
orange pod up to 10 centi-
metres long and 2 centime-
tres wide. Every pod con-
tains up to 7 round seeds
with a diameter of 5 to 7
millimetres. The colour of the
seeds is dark red when mature.
In the food industry, tara is sometimes referred to as Peruvian
carob. The properties of tara are similar to that of carob beans and
guar gum, which are widely used in the EU.
Tara gum is the powder obtained by grinding the endosperm of theseeds of the shrub Caesalpinia spinosa. Tara gum consists of
polysaccharides of high molecular weight composed mainly of
galactomannans.
Table 1.2: EU specifications for tara gum
Criterion Specification limit
Loss on drying Not more than 15%
Ash Not more than 1.5%
Acid insoluble matter Not more than 2%
Protein Not more than 3.5%
Starch Not detectable
Arsenic Not more than 3 mg/kg
Lead Not more than 5 mg/kg
Mercury Not more than 1 mg/kg
Cadmium Not more than 1 mg/kg
Heavy metals (as Pb) Not more than 20 mg/kg
1. Product description
http://www.plants.usda.gov/http://www.plants.usda.gov/http://www.plants.usda.gov/http://www.plants.usda.gov/8/21/2019 120817_Market Brief Tara Gum Final
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1.1 International registration
1.1.1. Harmonised System
Tara gum does not have its own code in the Harmonised System.
Tara gum is registered by customs as part of the product group
Mucilage and thickeners whether or not modified, from vegetableproduct, not elsewhere specified. The HS code of this product
group is 130239. The Peruvian tariff code for tara gum is
1302391000.
1.1.2. Nomenclatures
Tara gum is an approved food additive within the Codex Alimen-
tarius Commission (Codex) system with INS (International Num-
bering System) number 417. The INS was developed to provide
an agreed international numerical system for identifying food addi-
tives in ingredient lists as an alternative to the declaration of the
specific name which is often lengthy and a complex chemicalstructure. Thus, 417 is the number used on food labels in Europe.
It is shown as E417, where E stands for Europe. Note that the INS
is an identification system and does not imply toxicological ap-
proval by Codex.
The CAS (Chemical Abstracts Service) number is 39300-88-4.
The EINECS (European Inventory of Existing Commercial Sub-
stances) number is 254-409-6.
1.2 Import tariffsImports of tara gum are unrestricted. A 0% import tariff applies in
both the EU and EFTA.
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2.1 Market trends
The market for natural gums has just passed a period of great
instability. In 2011, due to strong increases in demand from the oil
drilling industry, prices for guar gum exploded (+400% in one year)
and availability plummeted. The oil drilling industry uses guar gumas a controlling agent in oil wells to facilitate easy drilling and
prevent fluid loss. The scarcity of guar gum had a profound impact
on the thickeners market. Many food and beverage manufacturers
used substitutes in new products or tried to replace guar gum by
cheaper alternatives. This offered particularly good opportunities
for tara gum, locust bean gum and xanthan gum, which have
similar functional properties.
The price increases were a major factor behind the recent in-
crease in tara imports to Europe. Between 2007 and 2011, exports
by Peru increased by 35% annually.
Table 2.1: Peruvian exports of tara gum to Europe, in US$ million,
2011
Imports Change 2010-2011
France 623 59%
Germany 567 28%
Spain 504 37%
Italy 357 17%
Netherlands 328 81%
SIICEX, 2012
Currently, prices for guar gum are coming down. This is expected
to ease demand for tara gum in the short-term. Nonetheless, long-
term market development will be positively influenced by fat re-
placement, demand for natural ingredients and sustainability.
2.1.1 Fat replacement
Changes in consumer preferences are causing food manufactur-
ers to constantly adapt their food formulations. A current trend in
consumer preferences which affects the market for tara gum is the
preference for low-fat and low-calorie foods. Gums, such as tara
gum can be used in fat-replacement systems and have conse-
quently become of interest to food manufacturers. This trend is
expected to continue to shape demand for at least several years,
as several European governments have taken policy measures to
fight obesity.
Traders of gums can profit most from this trend by providing com-
plete and accurate information about the characteristics and ap-
propriate use of gums in fat-replacement systems.
Sources providing information on fat replacement by gums include
Food Technology magazine (1999, Vol. 53, No. 8:
http://www.dict.uh.cu/Bib_Dig_Food/ift/ft/ft53/08-99-p&t-ing.pdf)
andhttp://hubpages.com/hub/Fat_Replacement_Products.
The fat replacement capacity also makes tara an interesting ingre-dient for nutraceuticals, such as weight management products.
2.1.2 Natural
Another change in consumer preferences with implications for tara
gum is the natural trend. Increasing concerns about the safety of
food together with a higher appreciation of products from nature
and a growing environmental consciousness have made natural
products more popular. These natural products also include foods
with additives. A large number of food manufacturers respond to
this demand for natural products by substituting synthetic ingredi-
ents and ingredients which are perceived to be synthetic by con-sumers (e.g. Microcrystalline Cellulose) with natural ingredients.
Again, traders have an important role in informing and advising
food manufacturers about natural gums.
The market for organic tara gum is small, but growing. Importers
indicate that the availability of organic tara gum is limited and that
organic tara gum offers an answer to the specific requirements of
specialised organic food producers.
The natural trend, which is visible in the food sector is also recog-
nizable in the cosmetics sector. Cosmetics manufacturers are
increasingly using natural ingredients in their products.
However, interviews with traders of tara gum made clear that the
cosmetics sector is not particularly interesting for exporters of tara
gum. The market is very small and cosmetics producers only need
2. European market environment
http://www.dict.uh.cu/Bib_Dig_Food/ift/ft/ft53/08-99-p&t-ing.pdfhttp://www.dict.uh.cu/Bib_Dig_Food/ift/ft/ft53/08-99-p&t-ing.pdfhttp://hubpages.com/hub/Fat_Replacement_Productshttp://hubpages.com/hub/Fat_Replacement_Productshttp://hubpages.com/hub/Fat_Replacement_Productshttp://hubpages.com/hub/Fat_Replacement_Productshttp://www.dict.uh.cu/Bib_Dig_Food/ift/ft/ft53/08-99-p&t-ing.pdf8/21/2019 120817_Market Brief Tara Gum Final
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7 | Market Brief for Tara Gum
small quantities. Direct imports by cosmetics producers are negli-
gible or even non-existent.
2.1.3 Sustainability
Sustainability has become a major focus of the European food
industry in recent years, making it essential for suppliers of gums
to comply with this trend. Consumers are increasingly attracted to
ingredients produced from raw materials which are sourced sus-
tainably.
Sustainable sourcing is a particularly strong trend in commodity
markets. However, an increasing amount of food manufacturer s is
positioning their entire companies, instead of single products, in
the market for sustainably produced food. This type of positioning
also requires sustainable sourcing of additives.
Sustainability in the supply chain is expected to become a major
risk management strategy for many European companies in the
next years.
2.2 Market segments
Tara gum has many different types of applications. It is used in
food, cosmetics, pharmaceuticals, oil drilling, etc. This survey only
discusses the major segments: food and cosmetics.
Tara gum is a thickener and stabilizer. Tara gum produces highly
viscous solutions, even at 1% concentration. Tara also has syner-
gistic effects when used in combination with other gums, such as
guar gum or Locust Bean Gum (LBG) to produce improved gel andcolloid stabilities and properties.
Tara gum is also applied to control the release of flavours, prevent
particle sedimentation or droplet creaming, induce gelation, im-
prove the emulsification of oils and stabilise foams.
2.2.1 Food applications of tara gum
The main market for tara gum is the
food industry. The exact share of
the food industry in tara gum pur-
chases is not known. However, the
fact that uses other than food appli-
cations are hardly mentioned by
industry sources, indicates that the
food industry dominates the market.
Moreover, according to SRI Con-
sulting, food applications account
for 90% of the global market for
hydrocolloids, which include gums,such as tara.Tara gum is used in
many food and beverage applica-
tions, including water based fla-
voured drinks, liquid milks, frozen
dairy desserts, breads and bakery products, processed fruit and
vegetables, mixed foods, prepared dishes, condiments, sauces
and many other products. Food manufacturers are interested in
tara gum for its functional attributes.
The main reason for many food manufacturers to use gums, such
as tara gum is their cost efficiency compared to other stabilizers
such as starches or gelatine. Gums are used at levels below 1%and often even below 0.1%. Although the cost per kg is high com-
pared to other stabilizers, the actual cost of use in the final product
is often lower.
Tara gum has synergistic effects when used in combination with
kappa-carrageenan, xanthan gum and agar, comparable to LBG.
In the combination, tara gum increases gel strength and makes the
gel less prone to syneresis (liquid separating from a gel on stand-
ing). Combining tara gum with xanthan gum produces long-term
suspensions giving potential for use in salad dressings, mayon-
naises, sauces and comparable products. Other subtle synergistic
effects of tara gum are shorter flow characteristics and improved
mouthfeel.
Some examples of tara gum applications are given hereafter. In
frozen desserts, tara gum provides a fat-like texture (rich butter
Increase your op portuni t ies:
Exporters can facilitate the substitution of synthetic ingredi-
ents by tara by supplying information on the application of
tara.
Organic certification can result in access to an interesting
niche market for organic tara gum.
Adopt measures to improve the sustainability of your pro-
duction system: energy reduction, reduction in water use,
proper waste management.
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mouthfeel) and heat-shock protection by helping to prevent ice
crystals. In the meat industry, tara is used to replace meat by
water. In a study by the National Agricultural University La Molina
in Peru, it was shown that the use of 0.28% tara gum allows for a
15% decrease in meat content in sausages through binding water
(+27%). Tara gum is also commonly used in fruit preparations. For
more detailed information about product applications, you are
advised to contact the technical experts of tara gum importers,
which are listed in section 7.3 or order the Handbook of hydrocol-
loids by G.O. Phillips and P.A. Williams
(http://www.woodheadpublishing.com/en/book.aspx?bookID=1478)
The following table shows the size of total trade in the segments
where tara gum has most potential.
Table 2.2: Turnover from trading activities in relevant segments of
leading European markets in 2007, in million
Meat Ice cream Sauces
Germany 2,648 301 811
France 1,686 456 124
Italy 1,505 103 38
Poland 1,165 34 46
United Kingdom 849 11 85
Spain 323 50 14
Source: Eurostat, 2012
Tara gum could be a solution for many more applications. Current-
ly, a particularly interesting application is the replacement of fats in
low-calorie foods. Gums have a wide range of function, including
thickening, stabilizing, emulsifying, clouding and flavour encapsu-
lation. These are functions which have often been performed by
fats. Food manufacturers often apply these functions of saturated
fats to improve the textural and mouthfeel properties of their food
formulations. However, consumers are increasingly looking forlow-fat and low-calorie foods. This has caused food manufacturers
to look for alternatives to fats, as simply removing the fats would
result in many changes in the organoleptic qualities of the food,
such as reduction of viscosity or loss of mouthfeel. Gums offer a
good solution.
Related to the value of tara as a fat replacer is the value of the
dietary fibre content. Tara gum is a source of dietary fibre with very
little if any caloric value added. Food manufacturers are interested
in the possibility to claim a higher amount of dietary fibres when
they use tara gum.
Tara gum has to compete with many other gums. It is important to
realize that the food formulation determines which type of gum a
manufacturer will use. Gums perform differently in mixtures with
other ingredients. Moreover, the temperature needed for the prep-
aration of the food can also influence gum performance. Blends of
different gums or blends of gums with other ingredients, which
combine into unique properties, are also a common solution. For
example, Equacia is a blend of gum Arabic with wheat fibres, from
the leading gum Arabic importer Nexira.
2.2.2 Consumer market
The niche market for consumer tara gum (
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market will always remain a niche market, due to the limitations of
the applications in molecular gastronomy.
2.2.3 Cosmetic applications of tara gum
Gums are valued by cosmetics companies for their emulsifying
and adhesive properties. Gums are used by the cosmetics industry
for their functional characteristics when synthetic substitutes are
not available, less effective or when cosmetics companies want to
produce a natural product.
In general, gums are mainly used in creams and lotions. However,
there is very little information available about the specific uses of
tara gum in cosmetic applications. This indicates that the use of
tara gum in cosmetic applications is limited. EU importers have
shown little interest in marketing tara gum in the cosmetics market.
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3.1 Price factors and pricing
3.1.1 Price factors
Profitability of tara cultivation depends for a large part on the utili-
sation of different products which can be derived from the taratree. Apart from the gum (endosperm), the tara pods contain tan-
nin (consisting for 53% of gallic acid), which can be used in the
leather industry.
In the past decade, availability of unprocessed tara pods has
increased as a result of tree planting for commercial use. The
improved availability has eased the costs of tara pods for tara gum
producers.
However, other cost factors have increased, notably energy prices.
Tara gum producers can control the increase in costs of resources
by reducing their need for these resources (e.g. Integrated Pest
Management) or improving efficiency (e.g. more efficient machin-
ery). The promotion of low energy use and other measures, as a
means to reduce the environmental impact of your production
system, offers an added advantage.
3.1.2 Pricing
Market-oriented pricing offers a good pricing strategy in the current
dynamic tara gum market. By closely monitoring global market
developments, you can anticipate price decreases or increases
and release or hold on to stocks.
Opportunistic market-oriented pricing may damage your long-term
trade relationship with a buyer. Therefore, you are recommended
to be careful in your price negotiations with regular customers.
Also note that this pricing method requires a relatively large
amount of liquid capital in order to finance activities when you are
holding on to stocks. Finally, it is important to realise that price
elasticity is limited by strong competition from substitutes, such as
guar gum and Locust Bean gum.
In light of the tightness in the guar gum market, prices of potential
substitutes including tara gum are expected to remain firm or evenincrease further in 2012.
Producers of organic hydrocolloids, such as tara gum may com-
mand a price premium of 30% to 40%, according to Dennis Seisun
of IMR International (2008).
3.2 Price structure
The price structure of natural gums, such as tara is complex. In
many cases, the products first go to an intermediary before they
reach the end-user. Depending on the value addition by the inter-
mediary, the price of the product can increase from a few percent
to a few hundred percent. The mark-up will be minimal (25%)
when the product goes to the end-user through an importer, which
only performs administrative work associated with purchasing and
selling items (arranging sea transport, customs clearance, local
transport, storage, quality control, re-packing, bank charges,
sales). The mark-up will be much higher when the product goes
through a longer channel involving more intermediaries with more
activities. Please refer to Chapter 5 for a detailed analysis of trade
channels. For example, some importers actively source by visiting
suppliers and advise clients on the application of the products. The
importers often sell the product to a processor. The mark-up of the
processor also depends on the kind of processing. The
(re)cleaning of natural gums does not have to be very costly, but
when the processor develops new blends of gums with applica-
tions in complex food formulations, value addition will be much
higher.
Conclusions:
Prices will remain strong in 2012 Monitor guar prices
European intermediaries may add a lot of value
3. Price
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4.1 Existing competitors
Peruvian exporters of tara gum primarily face competition from
other tara exporters. Approximately 80% of global tara production
takes place in Peru. The source of tara, the plant Caesalpinia
spinosais also found in Chile, Ecuador and Colombia. The plant iscultivated in China and also in India (Schiaffino, 2004). Tara gum
from all of these countries can enter the EU and EFTA duty free.
Suppliers of other thickeners also compete with tara gum export-
ers. Especially suppliers of Locust Bean Gum (LBG) and guar gum
compete with tara gum exporters. Locust beans grow on the carob
tree which is native to the Mediterranean. The main LBG produc-
ing countries are Spain, Portugal, Italy and Morocco. Guar gum is
produced in India and Pakistan. In the past year, production of
guar gum strongly increased in response to the price surge.
LBG and guar gum have similar functional properties as tara gum.
However, depending on the food or beverage formulation, other
thickeners might also be used instead of tara gum. In that case,
the end-product will have significantly different characteristics than
the products with tara gum. Therefore, substitution of tara gum by
thickeners other than LBG and guar gum is only relevant for new
product development.
The main suppliers of mucilages and thickeners derived from
vegetable products are the Philippines, Norway, Chile, Indonesia
and India. All of these countries are major producers of seaweeds
used for production of competitive products like carrageenan and
alginates.
4.2 New entrants
In the future, tara may also be produced in countries other than
Peru, Chile, Colombia and Ecuador. According to the World Agro-
forestry Centre, Caesalpinia spinosais also native to Bolivia, Cuba
and Venezuela. Additionally, the plant is cultivated in Ethiopia,
Kenya and notably Morocco.
Industry sources say that tara gum can also be produced in coun-
tries where Locust Bean Gum is grown as production conditions
for tara and LBG are similar. Producers of LBG are said to switch
to tara when prices for tara are high.
However, any attempt to produce tara in these countries will be
hampered by the long maturation period for Caesalpinia spinosa.
It takes several years before new tara trees start producing
Due to increasing expectations of the reliability of supplies in EU
trade, many importers are becoming more hesitant to switch be-
tween suppliers. Importers strongly prefer long-term business
relationships over short-term profits. Even when new suppliers
offer better price-quality ratios, importers tend to favour existing
business relationships. Switching to a new supplier implies a time-
consuming approval process. The importer will have to request
and assess a lot of information on product quality, supply capacity,
management, company track record, etc. A thorough assessment
is required to make sure that the new supplier is reliable.
4.3 Substitutes
4.3.1 Application
In the food industry, tara gum is said to bridge the gap between
guar gum, which is cold water soluble, and LBG, which is insoluble
in cold water. Although tara gum is not completely soluble in cold
water, it provides high viscosity at low temperatures. Compared to
LBG, tara gum delivers the same viscosity at lower concentrations.
Moreover, it is more economic in use (20-25%) and the colloid
produced is more resistant to high-shear breakdown during pro-
cessing. Industry sources also indicate a negative characteristic of
tara gum. Tara gum is not a good solution for formulations with a
pH value below 4.
It is important to realize that the competing products have been on
the market for a much longer time. Tara gum was only introduced
on a commercial scale in the 1980s, while other gums have been
on the market for centuries. In that sense, the market for tara gum
still has to develop. Industry sources indicate that the market for
tara gum is currently developing fast. However, it should be noted
that tara gum cannot replace all other hydrocolloids. Tara gum is
primarily a substitute for LBG, which has a market share of around
2%. Therefore, demand for tara is strongly related to the market for
LBG. Importers indicate that demand for tara gum went up in
2006-2007, because supplies of LBG were low. Demand for tara
gum was negatively affected when supplies of LBG recovered.
Importers switched back to LBG, as the price/performance ratio ofLBG was better and they prefer to trade with European partners.
Some importers say that users have already been switching back
to LBG since two or three years.
4. Competitor analysis
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Substitution by guar gum is currently a minor threat. High prices of
guar gum favour the use of tara gum by food and cosmetics manu-
facturers.
4.3.2 Availability
Despite the strong natural trend, tara gum still faces fierce compe-
tition from synthetically produced gums and thickeners which have
undergone non-natural processing. The competition from these
substitutes is largely the result of supply chain problems when
using natural gums. The production of natural gums is subject to
climatic conditions. Bad climatic conditions can lead to small har-
vests and a shortage in supply. Manufacturers need a constant
and reliable supply of ingredients. Sudden shortages can lead to
production problems, which are harmful to sales and relationships
with buyers. Another competitive advantage of synthetic gums
over their natural counterparts is their homogeneity and quality
consistency. Natural products are sometimes derived from differentbotanical sources and can vary a lot in quality. In conclusion, syn-
thetic gums pose a severe threat to natural gums, such as tara, if
suppliers of the latter do not stabilise their supplies and do not
guarantee quality consistency.
The substitution of gums is accelerated by the increasing scale of
operations of many EU ingredient suppliers. The ingredient suppli-
ers follow developments in the food and cosmetics industries
which are consolidating. The larger companies put more emphasis
on stability of supply in terms of both quantity and quality and are
developing a strong preference for synthetic substitutes.
Conclusions:
Your competition mainly consists of suppliers of other
types of thickeners
Securing stable supplies forms a major barrier to new en-
trants
Guar gum and LBG are the primary substitutes of tara
gum
Synthetic thickeners remain a threat as long as you do
not have a system in place to ensure reliable supplies
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5.1 Trade channels for tara gum
5.1.1 Most suitable trade channel
Gums enter the EU mostly through specialised importers, concen-
trated in Hamburg, Germany (A2 Trading;C.E. Roeper;Willy
Benecke)and France (Cargill;Starlight Products;Kalys). Directtrade with end-users in the food and cosmetics industries is not
possible as many end-users require small quantities, which cannot
be imported cost effectively, or do not have the means to import
the products themselves (quality control, logistics, customs). Im-
porters and often agents handle this business. The number of
importers handling gums in the importing countries has declined
considerably in the past 10 to 20 years. The decline is partly the
result of consolidation in the industry.
5.1.2 Roles of importers and processors
Many of the importers combine their import activity with processing
(e.g. analyzing, purifying, spray-dyring, blending). Other importers
sell the products on to specialized processors, blenders or directly
to end-users. Gums are processed on large scales by various
companies in the EU. Consequently, most demand for unpro-
cessed gum comes from the facilities of these processors.
There are no importers which have specialised in the supply of the
cosmetics market. Importers focus on the food market and some-
times find extra customers in the cosmetics market.
End-users of gums can have a wide variety of problems with food
formulations, which require gums. The variance in the problems
requires that solutions are tailor-made. Traders in the EU therefore
gather information on the food formulation of the end-user in which
the gum (blend) will be used and on the manufacturing process.
The information is then used to find the correct gum solution.
In fact, EU processors continuously carry out research to develop
new thickeners, which appeal to consumers and meet the expecta-
tions (and detailed product specifications) of food manufacturers.
The EU processors have the intrinsic knowledge of the EU food
market, necessary to identify demand for new or improved prod-
ucts. This expertise is difficult for companies in developing coun-
tries to obtain, because the distance to the EU food market is
much larger, both physically and in terms of business links. Also,
up-to-date knowledge of food legislation requirements in far-away
export destinations is not always easy to obtain.
Research is furthermore needed to develop thickeners which are
low-cost but still retain their functional properties under specific
conditions (e.g. light, heat and acidity). Establishing communica-
tion with the food manufacturers, needed to transfer the required
knowledge, is often easier for EU processors than for developing
country exporters.
One way for Peruvian exporters of tara to overcome the barriers
of reputation, technical expertise and/or supply variability is to use
EU-based traders and agents. The proximity to the market and
close contact with buyers allows traders and agents to serve as abridge between the distant exporter and the EU market. Agents,
which never own the products, can help to outsource processing
and/or provide extra services to the end-users. Those services are
usually technical solutions for end-users. For example, a food
manufacturer requiring improved mouthfeel and stability of its food
formulation may get advice from the agent on the application of
tara.
The current trend amongst end-users in the gum market is to skip
the blenders and deal directly with the producers or importers. The
end-users no longer accept to rely on blenders for their supplies of
gum blends. Blenders create blends without disclosing the infor-
mation on the composition of the blend to the end-user. This
makes the end-user completely dependable on the blender as it is
a costly process to find another solution. In the past, some blend-
ers used this advantage to increase their prices without negotiating
5. Commercialisation channels in Europe
http://www.a2-trading.com/en/products/hydrocolloids.htmlhttp://www.a2-trading.com/en/products/hydrocolloids.htmlhttp://www.a2-trading.com/en/products/hydrocolloids.htmlhttp://www.roeper.de/en/produktdetail.html?nummer=159http://www.roeper.de/en/produktdetail.html?nummer=159http://www.roeper.de/en/produktdetail.html?nummer=159http://www.willy-benecke.com/Gummi-Tara.175.0.html?&L=0http://www.willy-benecke.com/Gummi-Tara.175.0.html?&L=0http://www.willy-benecke.com/Gummi-Tara.175.0.html?&L=0http://www.willy-benecke.com/Gummi-Tara.175.0.html?&L=0http://www.cargilltexturizing.com/http://www.cargilltexturizing.com/http://www.cargilltexturizing.com/http://www.starlightproducts.com/index.php?option=com_content&view=article&id=79&Itemid=128http://www.starlightproducts.com/index.php?option=com_content&view=article&id=79&Itemid=128http://www.starlightproducts.com/index.php?option=com_content&view=article&id=79&Itemid=128http://en.kalys.com/http://en.kalys.com/http://en.kalys.com/http://en.kalys.com/http://www.starlightproducts.com/index.php?option=com_content&view=article&id=79&Itemid=128http://www.cargilltexturizing.com/http://www.willy-benecke.com/Gummi-Tara.175.0.html?&L=0http://www.willy-benecke.com/Gummi-Tara.175.0.html?&L=0http://www.roeper.de/en/produktdetail.html?nummer=159http://www.a2-trading.com/en/products/hydrocolloids.html8/21/2019 120817_Market Brief Tara Gum Final
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14 | Market Brief for Tara Gum
with the end-users. Since recently, end-users are increasingly
asking for the formulations of gum blends and purchase the gums
themselves. The blending process is also done by the end-users
or is outsourced to blenders. The effect of the trend described
above is a decreasing number of blenders.
Another development is concentration of the industry. Due to the
consolidation in the food and cosmetics industries in the EU, trade
in natural ingredients for these industries is concentrating. Com-
panies in the trade of natural ingredients are increasingly produc-
ing both conventional and organic product lines, and are offering
ingredients destined for the cosmetic and food sectors. The ex-
pansion offers the companies economies of scale.
Conclusions:
Importers which combine importing and processing are
the most common market channel
European intermediaries play a major role in helping food
manufacturers to use tara gum
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15 | Market Brief for Tara Gum
6.1 Product requirements
6.1.1 Product specifications
The product specification of the EU for tara gum are shown in
table 1.2.
Tara gum is available in viscosities of 2,500 to 6,000 cps (1%
concentration). However, in the EU, only two grades of tara are
traded. The medium viscosity grade offers 4,500 cps in a 1% con-
centration. The high viscosity grade offers 6,000 cps in a 1% con-
centration.
It is important to realize that importers also assess the variance in
viscosity in the gum supplies. Normally, the variance of a batch of
high viscosity grade should be between 5,500 cps and 6,500 cps.
A smaller the variance is better.
Producers can improve the homogeneity of tara gum viscosity by
milling at low temperature. Conventional hulling of the seeds in-
volves acid treatment or roasting. The roasting can alter the prod-
uct characteristics. Additionally, many producers use stone grind-
ing, which also generates high temperatures. New technologies
enable low temperature hulling and milling, resulting in a more
homogeneous product. Moreover, such technologies also reduce
the need for cooling water, which in turn reduces the risk of bacte-
rial contamination.
Another aspect of quality is mesh size. Importers often prefer finer
mesh sizes, as these will result in better dispersion. Additionally,
importers also value the origin of the gums. Gums from different
origins can differ in transparency level and molecular changes in
their applications.
Differences in quality aspects, such as viscosity and mesh size for
tara gum powder, should be minimal between batches. This can be
realised by grading the raw material and separating processing of
different grades.
Batch sizes are also an important indication of the quality con-
sistency that suppliers can offer. Larger batch sizes (>10 tonnes)indicate a better quality consistency. Larger batch sizes also have
the advantage that the importer has to perform less analyses.
Quality control analysis
Although many importers will analyse samples themselves, access
to laboratory analysis is valuable. Monitoring of your products
quality serves to prevent non-compliance to buyer requirements.
6.1.2 Packaging, marking and labelling
The packaging of tara gum should preserve the organoleptic quali-
ties of the gum, such as colour and viscosity. Gums are hygro-
scopic and should therefore be packaged in waterproof material.
Tara seeds can be packaged in paper bags, cartons or jute bags.
Tara gum powder is normally packaged in multi-wall paper bags
with a plastic (e.g. polyethylene) lining.
The required marking mostly depends on the specific requirements
of the importer. Information that is often required includes date,
supplier name, address, product name, net weight, if the product is
intended for food use, grade, recommended storage conditions.The information should be in English and using EU measures (e.g.
grams).
Quality labels, such as a label for organic products or Kosher or
Halal products could also be put on the packaging.
6.1.3 Documentation
Depending on the sourcing methods of the importer, documenta-
tion might be important and elaborate or obsolete. Some importers
prefer to visit companies from which they have received interesting
offers, while others prefer to gather documentation which provesthat the company can meet their requirements.
Documents required by most gum importers include:
Certificate of origin
Certificate of analysis (stating amongst others if the product is
foodgrade, that the product is allergy free and the amounts of
heavy metals)
Technical data sheet (TDS)
Material Safety Data Sheet (MSDS)
GMO-free certificate
Health certificate
Certificates that show compliance with third party standards,
such as HACCP, GMP or ISO 9000
A packing list and a bill of lading are also required for the transport
of tara products.
6. Marketing and buyer requirements
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16 | Market Brief for Tara Gum
Buyers generally prefer payments through open accounts. Howev-
er, due to high risks for the supplier, other terms of payment are
common. Cash-Against-Documents (CAD) and letters of credit are
both used for payment of the goods. Some importers prefer CAD,
as it is a faster payment method for them.
6.2 Supply chain management
Buyer requirements regarding supply chain management are
becoming increasingly strict. This is particularly relevant for tara,
because many potential importers have little confidence in the
supply of tara.
Supplies of tara gum should be stable. This implies that production
should be planned and controlled as much as possible. In the case
of wild-collected tara, a natural resource management system
should be in place to secure supplies. It could also imply that
buffers are kept. The quality should be consistent.
6.3 Standards and certificationschemes
6.3.1 ISO 9000 and 14000
Although not an obligatory standard for producers of food ingredi-
ents, the ISO 9000 is strongly increasing in importance in Europe.
Companies can obtain a certificate that is valid for three years.
Keep in mind that to become ISO 9000 certified means that the
whole company must be dedicated to it, and that it takes time and
financial resources. The ISO 9000 standards provide a framework
for standardising procedures in an entire organisation, regarding
quality, health, safety and environmental issues.
Furthermore, the best known environmental system is ISO 14000,
within which ISO 14001 is specifically aimed to minimize a compa-
nys impact on the environment.
6.3.2 ILO and SA8000
The International Labour Organisation (ILO), installed Conventions
and Recommendations so that basic human and labour rights arerespected within a company. Issues that are addressed in the
Conventions are for example minimum wage, minimum age, and
discrimination. The ILO is internationally accepted and provides
information and guidance to companies regarding human rights.
SA8000 is one of the most well-known voluntary global standards
to ensure social accountability. SA8000 includes standards in the
form of a Code of Conduct. The codes are based on the ILO Con-
ventions and on other human rights Conventions.
6.3.3 GMP and GACP
The Good Manufacturing Practice (GMP) and Good Agricultural
and Collection Practice (GACP) state the minimum quality and
hygiene requirements. These standards are binding for UN mem-
ber states and have to be incorporated in their legislation.
6.3.4 Fairtrade
Fair trade certification does not offer significant benefits to tara
gum producers. Tara gum is used in low concentrations as addi-
tives in composite food products and offers limited possibilities for
labelling to food manufacturers.
6.4 Legislative
Legislative requirements are the minimum requirements which
must be met by tara gum exporters marketed in the EU and EFTA
countries. Products which fail to meet these requirements are not
allowed on the EU and EFTA market.
The EFTA States, with the exception of Switzerland, take part in
the European Economic Area (EEA). This means that Liechten-
stein, Norway and Iceland follow EU food legislation in general.
The main differences between EEA and Swiss legislation applica-
ble to dried physalis is shown in Table 6.1.
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Table 6.1: Legislative requirements applicable to tara gum
Requirement Description Further information
Legislation application to EEA countries
Hygiene of foodstuffs
(HACCP)
The EEA legislation
on hygiene of food-
stuffs (HACCP) is
legally binding for
food processors, and
is recommended for
farmers (primary
production).
EC 852/2004
Microbiological con-
tamination of food
The EEA has set
microbiological crite-
ria for foodstuffs
EC 2073/2005
Additives in food The EEA has set
requirements for the
use of food additives
EC 1333/2008
Legislation application to Switzerland
Ordinance on food
hygiene
Establishes the gen-
eral hygiene require-
ments related to food
products regarding:production plant,
personnel, production
processes and mi-
crobiological criteria.
RS 817.024.1
Tara gum may not be used in jelly mini-cups, which have been
banned by the European Commission. The ban was imposed as
the jelly mini-cups have shown to constitute a risk for choking.
Conclusions:
Critical requirements:
HACCP
Basic documentation (Technical Data Sheet and Material Safety
Data Sheet)GACP, GMP
Traceability
Increasing your competitive edge:
Ensuring consistent quality
Product documentation and information
Implementing a recognized quality management system
Natural resource management
Organic certification
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:226:0003:0021:EN:PDFhttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:338:0001:0026:EN:PDFhttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:354:0016:0033:EN:PDFhttp://www.admin.ch/ch/f/rs/c817_024_1.htmlhttp://www.admin.ch/ch/f/rs/c817_024_1.htmlhttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:354:0016:0033:EN:PDFhttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2005:338:0001:0026:EN:PDFhttp://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:226:0003:0021:EN:PDF8/21/2019 120817_Market Brief Tara Gum Final
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18 | Market Brief for Tara Gum
7.1 Recommendations forpromotion
When highlighting the properties of tara, one can focus
on the natural origin, its viscosifying strength at low con-
centrations, the high resistance to high-shear break-
down, the synergistic effects when used with other thick-
eners, its low calorie content and the possibilities for fat
replacement.
Have your product documentation ready and up-to-date
(see Chapter 6 for relevant documentation). Based on
this product information, a new buyer of tara gum should
be able to assess the features of the product and to easi-
ly compare it with substitutes. Documentation is also of
major importance when approaching existing buyers. Ex-
isting importers are hesitant to switch to new suppliers,
as the assessment for the approval is a time-consuming
process. Suppliers could greatly reduce the efforts need-
ed by importers, by providing proper documentation.
Documents should be easily recognizable and filed in a
logical order.
Suppliers of tara gum should show importers how they
ensure stable supplies to convince them of the reliability
of tara gum supplies in terms of quantities. Transparen-
cy in the supply chain will help to build trust in the rela-
tionships between buyers and suppliers.
Certification schemes such as ISO and HACCP serve to
prove the reliability of a supplier regarding quantities and
quality.
English is the most frequently used language in Europe-
an trade. Although most European trade partners will not
be native speakers themselves, the vast majority speaks
English fluently. In almost all cases, foreign language
skills are essential when entering the European market.
7.2 Trade fairs
The main trade fairs in Europe which are relevant for the promo-
tion of tara gum are:
BioFach (http://www.biofach.de) the largest organic trade fair
worldwide; highly relevant to meet the main industry players
and promote your product in the organic market.
Food Ingredients Europe (FI)
(http://fieurope.ingredientsnetwork.com)leading trade fair in
the food ingredient sector; interesting to meet potential clients
in the food industry.
Prepare your trade fair participation by producing com-
pany and product documentation
Prepare representative samples of different qualities
(e.g. mesh sizes or viscosity), which you can deliver and
indicate in what quantities and with what frequency you
can deliver them.
7.3 Buyer list
The EU market for natural thickeners is consolidating, character-
ised by mergers and acquisitions. The result is that a small and
decreasing number of dominant players dictates the market for
natural thickeners, particularly in the larger, more mature markets
for hydrocolloids, such as xanthan gum and alginates. The consol-
idation results in fiercer competition for Peruvian exporters and in
a smaller number of potential buyers.
You can find a list of potential buyers in a separate document.
7. Promotion
http://www.biofach.de/http://www.biofach.de/http://www.biofach.de/http://fieurope.ingredientsnetwork.com/http://fieurope.ingredientsnetwork.com/http://fieurope.ingredientsnetwork.com/http://fieurope.ingredientsnetwork.com/http://www.biofach.de/8/21/2019 120817_Market Brief Tara Gum Final
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19 | Market Brief for Tara Gum
Abbreviation Explanation
EEA European Economic Area
EU European Union
EFTA European Free Trade Association
GSP Generalised System of Prefer-
ences
HACCP Hazard Analysis and CriticalControl Points
LBG Locust Bean Gum
8. Glossary
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