Shrinkage in the chicory area for the 2017 harvest. Sensus wants to reduce the stock in the coming years and has therefore contracted less area. This can be read in the 2016 annual report Cosun.
Due to the above-average revenues from the last 2 campaigns, the stock of inulin has increased and is higher than expected. Although sales in the European market grew in 2016, the inulin producer wants to contract less area in the coming season. About the exact area Census no statements, but CBS figures show that chicory was grown on 2016 hectares in 3.857. That is slightly less than the 3.903 hectares in 2015.
After a well-run campaign, Sensus achieved a slightly better result in 2016 than in 2015. The trend towards sugar reduction is the impetus for this growth in Europe. This creates opportunities for inulin, which can be used as a sugar substitute.
Baby food Asia
Sales of the ingredient to manufacturers of baby and infant food remained stable. These products are mainly sold in Asia, because consumers in these countries have more confidence in the quality of imported products of Western origin. European customers of Sensus therefore produce more for export from China and Southeast Asia.
Prices in the US under pressure
Disappointing sales in the United States. Due to increased competition, sales prices remained under pressure. The American Food Safety Authority will most likely make a decision in the first half of this year on whether inulin will be added to the list of approved fibers.
However, the overall sales expectations are such that the chicory processor assumes that the area can increase somewhat after 2017. The target of 10 tons of inulin per hectare is maintained unabated.
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