KMC expects increasing starch pricing over the coming months

At the beginning of 2013, Danish Potato Starch Manufacturer KMC offers their view on the starch supply situation in the new year:

Chief Commercial Officer Bjarne Larsen expects the global undersupply of raw materials to continue into 2013. Economic growth especially in Asia continues to increase global demand for raw materials when at the same time especially the US harvest of corn turned out to be very disappointing.

Corn starch being by far the most dominant volume starch type combined with the fact that the US is the dominant corn producer means that the disappointing US corn harvest has presented significant supply issues for starch customers around the world.

The production of European potato starch seems to be below normal this year with significant differences between the leading European producers. Production in Germany is expected to be clearly below normal, in Netherlands somewhat below normal and in Denmark slightly above normal. With European potato starch having only a relatively limited global market share, this year's potato starch production will not change the current overall starch under-supply situation.

Consequently, starch pricing for the coming months are expected to be increasing over the coming months.