Pectin expansion: Cargill to break ground on new US$150 million Brazilian facility next month

17 May 2019 --- Cargill will break ground in June on the construction of a state-of-the-art pectin plant in Bebedouro, Brazil, with a completion date by end of 2021. It will produce HM pectin, a versatile texturizing agent derived from citrus fruits to help meet the growing and global demand for label-friendly pectins for fruit preparations, dairy, confectionery and bakery food applications.

Initial plans for the investment were announced last August, when it was revealed as part of a comprehensive plan to strengthen Cargill’s full pectin footprint, including improvements to its existing three plants in Europe (Germany, France and Italy) and the new plant in Brazil to take advantage of local resources. The intention to invest in a plant in Brazil, which has an abundant citrus fruit supply, allows Cargill to deliver the pectin our customers need and consumers demand.

"The new production facility will produce several thousand metric tons of commercial product," Judd Hoffman, texturizers segment leader, Cargill Starches, Sweeteners and Texturizers tells FoodIngredientsFirst. "Cargill aims to expand to be a significant and sustainable player in the pectin industry."

Consumers want ingredients in their foods they recognize. Pectin, a nature-derived texturizer with superior functionality, helps to meet these needs, states Hoffman. “The investment in Brazil in combination with our European pectin facilities illustrates our commitment to customers around the globe to provide innovative and label-friendly solutions,” he notes.

The new plant comes as part of the company’s comprehensive pectin strategy. “By growing our pectin footprint and investing in our plants in Europe (France, Germany and Italy), we aim to meet the growing demand for label-friendly ingredients. In this context we are also announcing the modernization of our pectin plant in Redon (France),” says Hoffman.

The Bebedouro location (Brazil) is in the center of the citrus region, offering an abundant supply of fresh peels needed to produce HM pectin. The construction of the new unit will begin in the first half of 2019 and expected to be completed by end of 2021. It is expected to add 120 new direct jobs in the production and support areas.

“With a cost-competitive structure based on innovative production processes, the new plant only further strengthens Cargill’s commitment to Brazil’s growth,” says Laerte Moraes, Cargill’s Managing Director of Starches, Sweeteners and Texturizers in South America. “The new plant represents an investment of approximately US$150 million. This will not only open global market possibilities for our pectin business but also boost the innovation of our portfolio and offers the option to expand our high-end pectin offering for the European markets.”

Operating in Brazil since 1965, Cargill is one of the largest food companies in the country. Headquartered in São Paulo (SP), the company operates in 17 Brazilian states through its industrial units and offices in 191 cities with more than 10 thousand employees.

At the time of initial announcement of the investment last year, Cargill noted that the pectin market has seen a strong growth for several years, primarily driven by the acid dairy drink market, as well as the growing global consumer demand for label-friendly ingredients.

“For several years the pectin market has been growing by 3-4 percent,” Christine Nicolay, Global Communication Director at Cargill Starches, Sweeteners & Texturizers. “This is mainly driven by a strong growth in the acid dairy market and the growing global demand for label-friendly ingredients in various applications,” she noted.

Moving forward, Hoffman stresses that Cargill is always in the process of advancing and developing its businesses. "Texturizers and Specialties are key for food processing, so we have a close focus on this area. We will inform the markets when new projects come to fruition," he concludes.

By Robin Wyers