1. Sustainability of Guar Gum Demand on Food Market
Guar Gum Conference – 2016 Jaipur
Anauyla Batista
Mondelēz International    1

3. Contents of this document
Guar Gum on Food Market
Functionality
Food Industry’s Main Concerns
Big End Users
Guar Gum Pros & Cons
Volatility
Financial Benefit & Healthy Call
Technology and Innovation Importance
Conclusion

4. Guar Gum on Food Market

5. Functionallity Why use hydrocolloid systems in food products?
Provide mouthfeel and texture.
Gelling agent, thickness, suspension, physical stabilization, film-forming, body agent, texturizer, improving bake-stability

6. Food Application
For what applications guar gum can have an important role?
...and other applications
Helps to modify the viscosity of food systems and create the desired texture.

7. Big End Users of Guar Gum

8. What Matter Most for Food Industry
The world’s exploding population presents enourmous challanges in supplying sufficient amounts of the right food. To address these growing challenges we need to invest on science, technology and bold ideas.

9. What Matter Most for Food Industry
We are worried about nutrition, enviroment, responsible sourcing.
Common Challenges
Find solutions that improve quality and safety food, while lowering costs.

10. Big End Users Statement & Challenges
DuPont is a leader in solving the global challanges of food, energy, and protection.
We have a call for well-being.
Bring health through food to as many people as possible.
We are paving our path toward improved health—through better diet and lifestyle—is one essential way we strive to create value for society.

11. Driving the Virtuous Circle of Growth
Because companies do not survive only investing in technologies which will bring health and sustainale sourcing, they need to focus on cost reduction and margin enhancemet.
And how would they do that if not in searching for more cheapest solutions and launching new products, leveraging scale, simplyfing.
So this is the Virtuous Circle of Growth, extracted from Unilever webpage.
To Drive Profitable volume growth, we need to drive cost leverage and drive efficiencies, it will bring cost saving (but if it doen’t we will need to find cost saving), maybe investingin innovation, thinking bold, partnering with R&D... All this will drive profitable volume growth and so we restart, looking for how we can drive cost leverage and gain efficiency and how we can bring more cost saving.
This is the survive manual. If you want to survive in the jungle, you rather learn how to hunt. If you want to survive in a competitive market, you need to invest on research and technologies, to drive significant cost saving and sustainable productivity.
And this is what people like me do daily: 1) Cost reduction, simplification and sustainabe sourcing.
Cost Reduction
Source: Unilever USA webpage – Introduction Presentation
Simplification
Sustainable Sourcing

12. Guar Gum Pros & Cons

13. Over one billion chronically undernournished and malnourished
Fundamentals
World populate growth
+ Rising Incomes
Over one billion chronically undernournished and malnourished /

14. Fundamentals
World Crop Production Increase
+ Increase Yield

15. It includes Crude Oil, Food and other
Fundamentals
ESTIMATED
In million MT of guar seeds -
Supply
Demand
Nov 2013
3.60
2.16
Nov 2014
3.59
1.7
Nov 2015
2.79
1.5
WHY?
It includes Crude Oil, Food and other

16. New countries, such as USA, Australia and Sudan
Fundamentals
Chart 1. Global Supply (per region)
Major Producing Countries
New countries, such as USA, Australia and Sudan
What if ?!?!

17. Fundamentals Food industry with low margins No control over exposure
Chart 2. Demand (per industry)
Food industry with low margins
No control over exposure
Chart 3. Correlation
High correlation

18. Technical Analysis Chart 3. Price Trend (2010 – 2014)
I want to catch your attention here, this is not a volatility graphic but it shows the volatility, and what everybody knows that on 2011 the prices increased 1000%. And how could food industry stand it?

19. What if?
Legend:
MDLZ Buyer when the price spikes.

20. May we suffer the same volatility suffered on 2011 - 2012?
This second graphic, you know what it “remete”?

21. BEFORE A TSUNAMI, THE OCEAN IS VERY CALM...

22. Past Years
Low margins. We prefer stability and control our exposure than have the best CIU, if it is not sustainable. Food market is shrinking because of other products can be used as substitute, but as long as the price remains low Guar can be sold. Remember: We are not traders, we produce food!

23. What are the advantages of Guar Gum?

24. Health Is a natural product, without any additives Gluten free
Low calorific food value
Water-soluble fiber
Lower cholesterol
None GMO
Derives from na actual food

25. Financial Very profitable crop Perform well Low cost
Economical: 6-8 times the water-thickening potency of cornstarch
Derives from na actual food

26. Sustainability How can you build a business case?
Helps local community
Corporate Social Responsibility (CSR)
No addition of chemicals
Renewable
CASE L’ORÉAL and SOLVAY : Sustainable Guar Initiatives
Solvay and L’Oréal have teamed up in a scalable three-year project to teach and promote sustainable agricultural practices among 1,500 guar bean farmers across ten villages in India’s desert region of Bikaner, Rajasthan state. guar is the main resource for many farming communities .
Solvay’s “Sustainable Guar Initiative” aims to empower countless farmers with the tools and knowledge to cultivate the crop through good agricultural practices*, resulting in more continuous, high-yield production.
“Solvay’s initiative and partnership with L’Oréal, acting as a founding member, brings many benefits – for farmer communities, their environment as well as for demanding industrial applications. The project will help farmers improve the use of water and preserve the soil, it will raise their income and support local communities,” said Emmanuel Butstraen, President of Solvay Novecare and sponsor of the “Sustainable Guar Initiative”. “Our approach will also reinforce the availability of bio-based guar for industries and allow them to promote their ambitious sustainability goals.”

27. Trend of Demand JUICES COCONUT BLUEBERRIES POMEGRANATE ANTIONXIDANTS
FIBERS
ABU DHABI – NOV 16th 2015

28. GUAR FUTURE IS JUST STARTING
What to do?
Partnering
Find solutions to mitigate risks
This is the 3rd Guar Gum Conference. I hope I’ll be here on the 30st.
GUAR FUTURE IS JUST STARTING

29. Conclusion

30.
Derives from na actual food

31. Conclusion
Are we allowing that volatility dictates the rules of the maket?
Derives from na actual food

32. Conclusion Invest in technology & Research Partnering
Or are we taking control of or futures?
Derives from na actual food
Invest in technology & Research
Partnering
Find solutions & path the future

33. THANK YOU!