The recent BSE case in Canada could lead to a consumer panic over bovine-derived gelatine, despite scientific evidence that gelatine is BSE-free. What can the North American gelatine industry learn from its European counterpart and will it be able to fend off any attack on the product’s reputation? Patrick McGuigan finds out.


The news that BSE has been discovered in Canada, combined with media stories suggesting the killer disease is likely to be present in US cattle, could be the prelude to a consumer panic over bovine-derived ingredients in North America. For suppliers and users of gelatine, the mere mention of the disease is bad for business, as the European BSE crisis of the late 1990s showed all too well. During this time, consumers were scared away from gelatine-containing products, while prices for manufacturers exploded.


But the North American gelatine industry can also take heart from Europe’s experience. The crisis sparked the industry into a spirited defence of the product, which has been so successful that not only has gelatine been scientifically proven to be BSE-free, but it is now promoted as a functional ingredient with health benefits.

One of the most prominent companies in the fight to restore gelatine’s European reputation was Gelita. “We invested a lot of time and money, with the help of our customers, informing the public about the safety of gelatine,” says vice president market coordination and marketing Wolf-Dieter Barth in Germany. “The next step for us has been to make lots of studies into its functional nature. Gelatine is a product with many possibilities for joint and bone health.”








“Gelatine is promoted as a functional ingredient with health benefits”


A new chapter in the gelatine story


 In line with this tactic, the company will unveil new functional product ideas at this year’s Food Ingredients Europe show. Visitors to the Frankfurt exhibition can expect to see applications such as protein chews, prebiotic fruit gums and energy bars, all made with gelatine. Barth says that as the health benefits of gelatine become more accepted by European consumers, Gelita will export the marketing initiative to other regions, including the US. “It’s a good way of getting a higher value out of the commodity,” he adds.

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Of course, the European gelatine industry’s most significant weapon in the crusade to clear its name was the publication of independent scientific research proving there was no link between gelatine and BSE. Funded by the Gelatine Manufacturers of Europe (GME), in conjunction with the EC, Barth says the report’s findings, which were published at the end of 2001, have finally started sinking in with European consumers. “Attitudes towards gelatine are now much more positive,” he says.


One major consequence of the BSE crisis in Europe was a huge rise in pig skin gelatine prices. According to sales manager Luciano Testa at Italian supplier Italgelatine, porcine gelatine prices rocketed by some 40% between 1999 and 2001, as panicked food manufacturers switched from bovine gelatine. “By the end of 2000, there was a critical situation with the price and availability of pig skin gelatine because there was such high demand at very short notice,” he says. “In the space of one month virtually all our customers wanted porcine gelatine and we just couldn’t get the raw materials.”


Interestingly, back at Gelita, Wolf-Dieter Barth says that porcine gelatine went up in price because of natural market cycles rather than the BSE crisis. “There was rising demand from the pet food and meat industries for pig skins,” he says. “Slaughterhouses get more money selling to these industries than to gelatine manufacturers, which is why it was hard for us to get the raw materials.”


Whatever the reason, Luciano Testa says that porcine gelatine prices have since dropped significantly, as food manufacturers drift back to using bovine gelatine and consumers feel less worried about BSE. “The situation is back to normal now and there is equilibrium in the porcine gelatine market once again,” he says.


Problematic trading









“Consumer attitudes to gelatine are more positive “


 According to Testa, the BSE case in Canada could present opportunities to European suppliers, if North American consumers start to doubt the safety of gelatine. “The US already imports a lot of gelatine from Europe because its own production is not enough,” he says. “It is possible that what happened in Europe with BSE a few years ago could happen in the US. If public opinion goes the same way, there could be a big jump in demand for porcine gelatine. South America produces 90% bovine gelatine, so it would be an opportunity for European suppliers to meet the higher demand.”


However, gelatine trading between the US and Europe has been problematical over the past few years. Both regions have imposed tariffs on gelatine imports; there have also been problems with the certification of the small amount of US gelatine exported to Europe. “It is part of the general war of economies. We have to pay duty on the gelatine which we export to the US,” says Testa. “But what is far more damaging to trade is the weakness of the dollar compared to the euro. This makes our products expensive for US buyers. The dollar has lost something like 20% of its value compared to the euro in the past six months.”


According to George Masson, president of the Gelatin Manufacturers Institute of America (GMIA), Europe’s tariff rate for gelatine is far greater than that imposed by the US. “Of the 80,000 tonnes of gelatine used in North America, around a quarter is imported from other markets. We are net importers of gelatine, but we also export a small percentage. At the moment the US duty for gelatine imports is something like 3%, while Europe imposes a tariff of around 10%. EU duty rates are far more punitive than the US,” he says.


Safeguarding public opinion


When it comes to the discovery of BSE in Canada, Masson is unsure how it will affect public opinion in the US. “The adverse effect of the European crisis certainly had a spill-on effect with the American public,” he says. “Negative stories ricochet around the world and the public tends not to differ between whether they apply to porcine or bovine gelatine – the gelatine industry as a whole is impacted.”


The GMIA has worked closely with the GME and the FDA to demonstrate that there is no link between gelatine and BSE. And the FDA has publicly declared that all versions of the ingredient, including gelatine derived from cow bones, are completely safe. It is easy to understand why the public may jump to conclusions about gelatine derived from cow bones, as BSE has been linked to the skulls and vertebrae of cattle. But ironically, Canada does not manufacture bovine bone gelatine, while it accounts for a very small percentage of the US’s output. The US is also yet to report a single case of BSE.







“There is absolutely no risk of BSE”



“About 60% of North America’s gelatine comes from pigs, while most of the remaining 40% is made from cow hides. Anyway, bovine gelatine is used mainly in the photographic industry, not for food,” says Masson. “Regardless of this, the rigorous processes that gelatine goes through, such as acidulation and liming, mean that there is absolutely no risk of BSE.”


This may be the case, but as European manufacturers know all too well, it only takes a handful of negative media reports to have a serious impact on gelatine’s image. If the discovery of BSE in Canada turns out to be a one-off case, then North American gelatine suppliers shouldn’t have too much to worry about. But if the situation develops and cases are found in the US, they may be calling their European cousins for a few words of advice.