Cargill planning new pectin facility in Brazil

27-Aug-2018 - Last updated on 27-Aug-2018 at 14:27 GMT

The company is planning to invest $150 million in a new facility in Brazil to meet market demand for high-quality pectin.

HM pectin is a citrus fruit-based texturizer that can be used for jams, beverages/juices, acid dairy drinks and confectionery.

“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,” said Bruce McGoogan, strategy and innovation leader for Cargill starches, sweeteners and texturizers business.

“HM pectin plays a significant role in delivering on both trends—as it is a plant-based texturizer designed for acid dairy drinks as well as for jams, beverages and confectionery products. 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 intended project is part of Cargill's plan to strengthen its pectin footprint. The company is also planning improvements to its existing three plants in Europe (Germany, France and Italy).

“Adding an industry-leading pectin asset in Brazil will complement Cargill’s existing European network and create the capacity to serve our customers around the globe with premium pectin ingredients,” said Laerte Moraes, managing director of Cargill’s starches, sweeteners and texturizers business in South America.

“The intended investments also illustrate Cargill’s commitment to its employees and the economies in both Europe and Brazil through job growth and financial contributions. The intention is to start construction early 2019.”

Acid milk drinks the main growth area?

Commenting independently on the announcement, hydrocolloids expert Dennis Seisun from IMR International noted that the new facility in Brazil will make Cargill the first competitor to CP Kelco's pectin production in Brazil.

“Only HM pectin production is planned,” added Seisun, “which perhaps indicates that orange peel is most suited to HM production only, or it is an indication that HM pectin in acid milk drinks is the main pectin growth area forecast by Cargill.”