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Guar Gum A perspective from the Food Industry presented by. Producer and Exporter of Guar Gum since 1960. Guar Seed, Splits & Powder. Guar Pod. Guar Seed. Guar Gum Powder. Guar Splits. Guar Gum – a versatile hydrocolloid. - PowerPoint PPT Presentation
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Producer and Exporter of Guar Gum since 1960
Guar Gum
A perspective from the Food Industry
presented by
Guar Seed, Splits & Powder
Guar Pod
Guar Gum Powder
Guar Splits
Guar Seed
Guar Gum – a versatile hydrocolloid In the food industry Guar Gum is used as a thickener,
binder of free water, stabilizer, emulsifier
For many years Guar Gum was the cheapest hydrocolloid
in the world
Generally adequate supply to meet all demand
Relatively stable pricing
Hence wide application in the food industry
Traditional food uses of Guar Gum
Bakery Dairy Meat Beverages Others
Breads Ice Cream Sausages Juices Sauces
Rolls Processed cheese Canned meat Nectars Ketchup
Pre-mixes Yogurt Meat pâtés Non-alcoholic Mayonnaise
Cakes Flavoured milk Pet-food Instant beverages
Frozen foods
Muffins Soft spreadable cheese
Instant noodles
Bagels Pies/puddings
Sour cream
Guar Splits Price Movement
Reaction of Guar Gum users
There were and are alternatives to Guar Gum
Changing from one ingredient to another in food
products is not easy but can be done
Food users started working on alternatives and
changes to their recipes by the middle of 2011
All efforts paid by due to the fantastic rise in prices
over the next 9 months
Reaction of Guar Gum users
Guar Gum users in the food and pet-food industry
responded to this challenge by:
Reducing inclusion rate
Combining Guar Gum with alternative products
Replacing Guar Gum completely
As a result Guar Gum usage went down by 50% to 75%
across the food industry!!
Alternatives to Guar Gum
Product Bakery Dairy Meat Beverages Others
CMC Xanthan Fibers Tara Gum LBG Modified Starches
Pricing of alternative products
Product 2011 - 2012 (USD / Kg)
2013 (USD / Kg)
Trend
CMC 4.0 - 5.5 2.8 – 3.8 Xanthan 4.0 - 6.0 3.5 – 4.5 Fibers 0.8 – 2.5 stable Tara Gum 7.0 stable LBG 13.0 – 15.0 12.0 Modified Starches 0.75 – 3.85 stable
What’s happening now?
Guar splits prices have declined nearly 85% from their
peak
Users are taking their time in moving back to Guar
Gum as they fear that prices might again shoot up due
to oil demand and/or price manipulation
Industry might regain 40% to 50% of the lost demand
if prices remain relatively stable at current levels
Guar Gum pricing going forward
Prices should not go back to historical lows
Prices should be more competitive against
alternative products and the price range
should not be very wide
Price range of USD 2.5 – 3.0 per kg could be
the ideal range going forward
Premcem Gums’ Background
Established in August 1960
One of the pioneer producers & exporters of Guar Gum
Headquartered out of Mumbai
Three manufacturing facilities in Gujarat
Total installed capacity – 20000 MT (44M lbs) annually
Supply Guar Gum for a wide range of applications/industries
such as hydraulic fracturing in shale oil/gas, processed food, pet-
food, mining, explosives, etc.
