Wheat transformation: Cargill invests US$200m in corn to wheat switch at German plant
The demand for vegetable proteins and rise in e-commerce has upped customer wheat needs, says the agribusiness giant
10 Jul 2019 --- Cargill is investing US$200 million to diversify its starches and sweeteners portfolio produced at its Krefeld, Germany site, by switching the processing facilities focus from corn to wheat. The move reflects changing market dynamics in the nutrition and packaging space, such as an increased demand for protein-rich foods and paper packaging. Construction will begin early next year, with completion expected by the summer of 2021. The first deliveries of high-quality wheat products are scheduled to start in the autumn of 2021.
Speaking with FoodIngredientsFirst, Alain Dufait, Managing Director Cargill Starches, Sweeteners & Texturizers Europe, explains how the agribusiness giant’s diversification is partly driven by the growing world population, projected to reach 9.8 billion by 2050 as well as the rising need for industrialized starches used in paper packaging, that in turn is driven by the boom in e-commerce.
“Diversifying Krefeld’s product portfolio will allow us to address changing market trends like the increasing demand for vegetable proteins,” says Dufait. “In order to diversify the portfolio, we need to transform our Krefeld site from a corn processing facility to a wheat processing facility. We believe such a transformation will help to improve Cargill Starches, Sweeteners & Texturizers Europe’s competitiveness, position the business for future growth and allow it to sustain its market leadership.”
Currently, the Krefeld plant produces a range of corn starches and sweeteners for the food and industrial markets. However, by transforming the site from corn to wheat, Cargill can add wheat proteins and specialized starches to its portfolio.
Cargill says this diversification will help “to better serve customers’ needs.” However, the company has not detailed any figures on plant production capacity or tonnage of wheat.
Alain Dufait, Managing Director Cargill Starches, Sweeteners & Texturizers Europe.
An efficient and sustainable manner
“Cargill remains committed to serving our food producing customers globally with corn starch-based ingredients in a safe and responsible way,” Dufait adds. “The majority of the ingredients currently produced in Krefeld can be produced from wheat with the same specification. Should the customer require corn-based products, we will evaluate alternatives to ensure continuous supply from our European network for all our customers.”
Dufait adds the new facility, that will be built on the current factory site, will use the latest production technologies to increase the plant’s reliability and viability, contributing to Cargill’s goal of “feeding the world in a sustainable and responsible way.”
The site is strategically located near to the river Rhine and the rail network which allows the company to serve European and global customers over water and land in an efficient and sustainable manner.
This investment will also support the local economy and the European farming community while positioning the business for future growth, notes Cargill.
Last month, construction work began on Cargill’s state-of-the-art pectin plant in Bebedouro, Brazil, with a completion date scheduled for the end of 2021. The new facility will produce HM pectin, a versatile texturizing agent derived from citrus fruit 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 first announced in August 2018, 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 its customers need and consumers demand.
Cargill Starches, Sweeteners & Texturizers processes corn, wheat, seaweeds, fruit-peels, sunflowers, rapeseed and soy to manufacture a comprehensive collection of value-added ingredients dedicated to the food and beverage industry.
In the nutrition space, it focuses on fiber and protein innovations and its portfolio also includes sweeteners: glucose syrups, glucose-fructose syrups, dextrose, low-caloric polyols and zero calorie stevia-based sweeteners; as well as starches: native, functional, modified, maltodextrin, lecithins (fluid, de-oiled, fractionated and modified), carrageenans, pectins and biopolymers (xanthan and scleroglucan).
By Gaynor Selby
