The current low grain prices are interesting for producers of the sweetener isoglucose; maize in particular is a relatively cheap raw material. Despite a sugar market with low prices, it is still worthwhile for some countries to get started with the sweetener.
The European Commission expects the area of cereals in the European Union to decrease by 2018 hectares for the 2019/718.000 season. This brings the total area to 54,83 million hectares. Looking at the average yield over 5 years, this results in a harvest of 304 million tons.
Higher glucose production
The Commission's expectation that grain consumption for the production of isoglucose will increase is striking; this concerns grain maize and wheat. This is made possible by the end of the sugar quota. In the past, production of the sweetener glucose-fructose syrup was also limited (to 690.000 tons). Estimates for production in the quota-free era vary widely, with maximums of 2 million tons.
Interest in the sweetener is determined by 2 factors: the price of grain and the price of sugar. With a sugar price of €350 to €400 per tonne, the sector must do its best to compete. Moreover, the reputation of isoglucose is sometimes an issue.
Opportunities in Eastern Europe
There are opportunities for producers, especially in Eastern Europe. Countries such as Romania and Hungary produce a huge amount of corn, while beet cultivation has the greatest difficulty in becoming profitable. Switching to isoglocose may be a solution. Moreover, existing glucose factories are relatively easy to convert.
Starch manufacturers have also made investments in recent years to produce isoglucose. New factories are not built; the risk is too great for that.
Grain price gives room
If beet sugar processing becomes more difficult for Central and Eastern European countries, a sugar shortage may arise. This gives isoglucose new opportunities. If the price of grain rises, the situation is difficult. In recent years, maize has proven to be a stable raw material on the Matif. Prices have been fluctuating around €155 per tonne since the end of last year. The last time corn was above €2013 was in 200.