UK-based food ingredients group Tate & Lyle said today (22 July) it made a “sound start” to its fiscal year as demand for speciality ingredients remained “steady”.
The company, which is focusing on food ingredients after deciding to offload its sugar operations, said it saw “solid growth” in sucralose volumes in the three months to the end of June.
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Volumes of corn sweeteners were “somewhat above” the levels seen a year ago due to higher demand in Mexico and increased capacity in Europe.
However, Tate & Lyle said the performance of its industrial starch business in Europe and the Americas was “marginally lower” as higher volumes were offset by weaker margins.
Nonetheless, the company said it continued to “anticipate progress in the current full financial year”.
“In speciality food ingredients, we expect a continuation of the steady demand patterns experienced during the first quarter,” Tate & Lyle said.
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By GlobalData“In bulk ingredients, we expect the firm demand for corn sweeteners into Mexico to continue alongside the modest decline in US domestic demand, and stable demand in our other food markets. Despite some improvement in demand, industrial starch margins are expected to remain at lower levels, reflecting industry over-capacity, and we continue to see little near term improvement in US ethanol markets.”
