Sustainability of Guar Gum Demand on Food Market Guar Gum Conference – 2016 Jaipur

Anauyla Batista Mondelēz International

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Contents of this document

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Guar Gum on Food Market–Functionality –Food Industry’s Main Concerns–Big End Users

Guar Gum Pros & Cons–Volatility –Financial Benefit & Healthy Call–Technology and Innovation Importance

Conclusion

Guar Gum on Food Market

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Functionallity

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Why use hydrocolloid systems in food products?

Provide mouthfeel and texture.Gelling agent, thickness, suspension, physical

stabilization, film-forming, body agent, texturizer, improving bake-stability

Food Application

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Helps to modify the viscosity of food systems and create the desired texture.

...and other applications

Big End Users of Guar Gum

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What Matter Most for Food Industry

The world’s exploding population presents enourmous challanges in supplying sufficient amounts of the right food.

To address these growing challenges we need to invest on science, technology and bold ideas.

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We are worried about nutrition, enviroment, responsible sourcing.

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Common Challenges

What Matter Most for Food Industry

Find solutions that improve quality and safety food, while lowering costs.

Big End Users Statement & Challenges

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We have a call for well-being.

DuPont is a leader in solving the global challanges of food, energy, and protection.

Bring health through food to as many people as possible.

We are paving our path toward improved health—through better diet and lifestyle—is one essential way we strive to create value for society.

Driving the Virtuous Circle of Growth

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Source: Unilever USA webpage – Introduction Presentation

Cost Reduction

Simplification

Sustainable Sourcing

Guar Gum Pros & Cons

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FundamentalsWorld populate growth

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+ Rising Incomes

Over one billion chronically

undernournished and

malnourished

FundamentalsWorld Crop Production Increase

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+ Increase Yield

Fundamentals

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ESTIMATED

It includes Crude Oil, Food and other

- Supply Demand

Nov 2013 3.60 2.16

Nov 2014 3.59 1.7

Nov 2015 2.79 1.5

In million MT of guar seeds

WHY?

Major Producing Countries

Chart 1. Global Supply (per region)

Fundamentals

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New countries, such as USA, Australia and Sudan

What if ?!?!

Chart 2. Demand (per industry)

Chart 3. Correlation

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Fundamentals

Food industry with low margins

No control over exposure

High correlation

Technical AnalysisChart 3. Price Trend (2010 – 2014)

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What if?

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Legend:MDLZ Buyer when the price spikes.

May we suffer the same volatility

suffered on 2011 - 2012?

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BEFORE A TSUNAMI, THE OCEAN IS VERY CALM...

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Low margins.

We prefer stability and control our exposure than have the best CIU, if it is not sustainable.

Food market is shrinking because of other products can be used as substitute, but as long as the price remains low Guar can be sold.

Remember: We are not traders, we produce food!

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Past Years

What are the advantages of Guar Gum?

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• Is a natural product, without any additives

• Gluten free

• Low calorific food value

• Water-soluble fiber

• Lower cholesterol

• None GMO

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Health

• Very profitable crop

• Perform well

• Low cost

• Economical: 6-8 times the water-thickening potency of

cornstarch

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Financial

How can you build a business case?

• Helps local community

• Corporate Social Responsibility (CSR)

• No addition of chemicals

• Renewable

CASE L’ORÉAL and SOLVAY : Sustainable Guar Initiatives

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Sustainability

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Trend of Demand

ABU DHABI – NOV 16th 2015

JUICES

COCONUT

BLUEBERRIES

POMEGRANATE

ANTIONXIDANTS

FIBERS

What to do?

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GUAR FUTURE IS JUST STARTING

Partnering

Find solutions to mitigate risks

Conclusion

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ConclusionAre we allowing that volatility dictates the rules of the maket?

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Conclusion

Invest in technology & ResearchPartnering

Find solutions & path the future

Or are we taking control of or futures?

THANK YOU!

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