Starch & Fermentation

Experience and Expertise

Our team of starch specialists have a detailed knowledge of the major end use markets for derivatives including food and paper as well as more minor end uses in textiles and other sectors. They understand what drives prices and value in this sector. They work closely with our team analysing developments in raw material costs. This ensures that we are able to provide objective analysis of the full value chain of the starch industry in different parts of the world. Our continual monitoring and analysis of developments in this sector means that we are able to help clients plan effectively and successfully to identify and seize opportunities and to pre-empt threats. These may include, for example, sudden policy changes; new market developments; or changes in raw material prices.

A sample of the broad range of types of LMC consultancy services we can provide is given below.

Market and price forecasting

A market survey and analysis of the food starch industry

The analysis focused on the market potential for a range of novel grain traits focusing on the European and North American markets.

Cassava root price outlook

The report explained the evolution of fob BKK starch prices, Northeast Thailand root prices, chip and pellet prices, prices of competing grains and Chinese corn and starch prices. The analysis also examined the profitability of cane production and the impact on cassava root prices. This included an explanation of the link between root/pellet prices and the price of grains and starch.

Developments affecting the global intense sweetner market

Developments affecting the intense sweetener market focusing on aspartame, sucralose and ace-k, as well as stevia and neotame. This included consumption forecasts for the main sweeteners to 2015 on a regional basis (US, Europe and Japan). Data was broken out for beverages and table top. Consumption estimates were run for a number of different scenarios including: rapid growth of stevia, patent expiry of sucralose

Dextrose and sucrose in Eastern Europe

This study focused on the market for dextrose and starch (from wheat and maize) and the market for sucrose (from sugar beet) in Eastern Europe. The report examined recent developments and the market outlook for these products.

The Asian market for fermentables

For the six Asian markets of China, Indonesia, South Korea, Taiwan, Thailand and Vietnam, the report provided a market analysis of three fermentable products MSG, citric acid and lysine. It provided country level capacity data, export and import volumes and indicative prices for each of the main products. The names of the most significant companies involved in producing MSG, citric acid and lysine were also given for each of the featured countries.

Benchmarking performance & competitiveness

Cane, sugar and ethanol production costs at Brazilian cane mills

Cost estimates for processing fermentation raw materials glucose, sucrose and molasses

The report presented detailed cost estimates for processing. Costs were estimated by raw material, process method and plant size.

EU starch capacity data for the top ten leading starch producers

Total grind capacity by raw material (e.g. maize, potato, wheat) was provided for the top ten starch producers in the EU.

North American corn wet milling plants in the US and Canada

Review of production capacities for starches, sweeteners and ethanol

The competitivness of ethanol production by location and raw material

This report benchmarked the competitiveness of ethanol production by location, choice of crop (corn, wheat, tapioca, sugar and molasses) and process. The report specifically focused on Brazil, Thailand and Central Europe and assessed the raw material advantages, disadvantages and risk of all three options.

The competiveness of EU vital gluten supply

The report provided an overview of EU producers of wheat starch and gluten (plant capacities, estimated production, assessment of the cost of wheat starch production in the EU). It examined how policy changes (sugar reform and growing ethanol production) will affect EU vital gluten supply.

Feasibility/due diligence/investment appraisal

A feasibility study for a bioethanol plant in Northern Europe

This included an analysis on the market outlook for ethanol, wheat and DDGS. The market outlook for wheat looked at both future demand for wheat in the EU and its potential impact on prices. The market outlook for DDG was analysed with reference to developments in the US ethanol market, where a surge in dry milling has boosted the availability of DDG. The implications of this for DDG pricing in the EU were assessed. The study also examined the energy balance of wheat ethanol and it's potential to reduce green house gas emissions. In the final part, future policy developments impacting on ethanol at both EU and national levels were discussed.

Investment oppourtunities within the polyols sector

Production, trade and consumption forecasts for sorbitol, mannitol and other significant polyols (isomalt, xylitol, erythritol and maltitol) were given together with price trends in different regions. The competitive landscape was examined including capacities for the leading producers, together with a SWOT analysis by producer (focusing on raw material, scale and technical expertise).

Market advisor for project finance for a bioethanol plant located in France

The project involved the collection and analysis of information necessary to assess the market risk for the Project, including analysis of pricing, quality and volume sourcing of feedstocks as well as the transport logistics, marketing strategy a market potential for by products.

Value chain analysis

The value chain for biofuels from raw material through to the final product

This included value chain analysis from cane juice to ethanol (Brazil), maize to ethanol (US), soybean to biodiesel (US), rapeseed to biodiesel (EU), wheat to ethanol (EU).

The European starch industry: the continuing search for value addition

This study provided an authoritative analysis of the starch industry in the European Union, covering participants, markets, materials, policy, technology and the prospects for market participants.

UK and France value chain for wheat

A comparison of the value added through the marketing chain from planting to first processor for wheats of different quality, and destined for different end-uses, in the UK and France.

International and national policies

Biofuel demand projections on the basis of a 20% biofuel inclusion rate by 2030

The paper assessed the implications for the demand for carbohydrate and oilseed crops, the current and future areas that would be needed to meet food/fuel demand as well as fuel demand (identifying those areas where land could be brought into farming) with an analysis of the implications for crop prices if they were valued as a raw material for biofuels rather than as conventional food/feed uses. The study also looked at the impact of the expansion of biofuels production on by-product markets: DDGS and glycerine.

For the European Commission an evaluation of the CAP starch regime

The study formed part of a series of major reviews of the CMO support measures that the Council of Ministers required in order to assess whether policy reforms would be advisable in key agricultural sectors. It examined the cost of the support measures together with their efficiency. The effect of the measures on the chain of value added products produced by the EU starch industry was examined in detail, resulting in an analysis of the impact that the measures have on the price of starch in the EU. Recommendations were put forward for the reform of the measures for support.

Evaluation of the CMO for the cereal sector for the European Commission

This high profile and very large project involved a comprehensive review and analysis of all of the main cereal crops in the EU. The project examined the effectiveness and efficiency of the Cereals CMO and associated policy instruments; these measures were evaluated both individually and as a package of instruments taken collectively. LMC acted as the lead contractor undertaking the bulk of the work. Sub-contractors were used for specific country reports in France, Germany, Italy, Spain, Denmark, Hungary and Poland

The EU potato starch sector

The study explained the support provided to the potato starch sector and how this translates into subsidies for: Poland, Germany, Netherlands, Denmark and France. The explanation of policy included a discussion of the minimum price for starch potatoes and production and export refunds. The report also explained the changes to the market environment facing potato starch producers following the proposed reforms and how this is likely to affect different producers, depending on the size and location of their plants.

Starch & Fermentation

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