tara market

Market Survey

TARA CAESALPINIA SPINOSA

Compiled for SIPPO by ProFound – Advisers In Development

2008/2009

Market Survey Tara 2008/2009 2

CONTENT 1 PRODUCT CHARACTERISTICS ................................................................................... 3

1.1 Product description ................................................................................................. 3

1.2 Main uses................................................................................................................ 4

1.3 Customs/statistical product classification................................................................. 7

1.4 Nomenclatures........................................................................................................ 8

2 PRODUCTION............................................................................................................... 9

2.1 Global production .................................................................................................... 9

2.2 Production in Peru................................................................................................... 9

3 EUROPEAN MARKET CHARACTERISTICS................................................................10

3.1 Market segmentation..............................................................................................10

3.2 Status Quo: Market size, Imports and Exports........................................................10

3.3 Consumption patterns and trends...........................................................................14

3.4 Opportunities in the food sector..............................................................................15

3.5 Opportunities in the skin care and cosmetic sector.................................................16

3.6 Opportunities in the leather industry sector ............................................................16

3.7 Opportunities in the natural remedy sector (inclusive information on scientific proofs of efficacy) ........................................................................................................................17

4 TRADE STRUCTURE ...................................................................................................19

4.1 General trade structure ..........................................................................................19

4.2 Value chain Peru....................................................................................................20

5 EUROPEAN MARKET REQUIREMENTS.....................................................................22

5.1 Legal requirements ................................................................................................22

5.2 Importance of existing quality standards.................................................................24

5.3 Relevant trade related issues .................................................................................26

5.4 Tariffs, quotas and taxes ........................................................................................27

5.5 Packaging, documents, marking and labelling........................................................28

6 PRICES.........................................................................................................................30

6.1 Price developments................................................................................................30

6.2 Sources of price information...................................................................................31

7 MARKETING STRATEGIES AND SALES PROMOTION..............................................32

7.1 Marketing strategies and Sales Promotion .............................................................32

7.2 Importance of private label initiatives (organic, fair trade etc.) as a marketing tool .34

7.3 Concrete B2B opportunities....................................................................................35

7.4 Companies interested in Tara based products .......................................................36

7.5 List of companies contacted that showed no interest in importing Tara based products............................................................................................................................37

8 ANNEXES.....................................................................................................................38

8.1 Standards organisations.........................................................................................38

8.2 Sources of price information...................................................................................38

8.3 Trade associations .................................................................................................38

8.4 Trade fair organisers ..............................................................................................38

8.5 Trade press............................................................................................................38

8.6 Other useful adresses ............................................................................................38


1 PRODUCT CHARACTERISTICS

1.1 Product description The plant Caesalpinia spinosa, or ‘tara’ is a native plant species in Peru. The local name in Europe is ‘spiny holdback’. Research into botany can lead to new insights. As a result, the taxonomic classification of plants sometimes changes. The current taxonomic classification of Caesalpinia spinosa is as follows:

Table 1.1 Taxonomic classification by USDA

Kingdom Plantae Subkingdom Tracheobionta Superdivision Spermatophyta Division Magnoliophyta Class Magnoliopsida Subclass Rosidae Order Fabales Family Fabaceae Genus Caesalpinia Species Caesalpinia spinosa Synonyms Poinciana spinosa Molina

Caesalpinia pectinata cavanulles Caesalpinia tinctoria HBK Tara spinosa

Source: USDA (http://www.plants.usda.gov), 2008

Figure 1.1 Tara pods

The fruit of Caesalpinia spinosa is a flat yellow to orange pod up to 10 centimetres long and 2 centimetres wide. Every pod contains up to 7 round seeds with a diameter of 5 to 7 millimetres. The colour of the seeds is dark red when mature. In the food industry, tara is sometimes referred to as Peruvian carob. The properties of tara are similar to that of carob beans and guar gum, which are widely used in the EU.


Tara gum is the powder obtained by grinding the endosperm of the seeds of the shrub Caesalpinia spinosa. Tara gum consists of polysaccharides of high molecular weight composed mainly of galactomannans.

Table 1.3 Specifications of tara gum

Technical specifications Appearance White powder Moisture Max 15.0% Proteins (Nx5.7) Max 3.5% Ash Max 1.5% Fat content Max 0.75% Insolubles in acid Max 2% Starch Not detectable Particle size Mesh 100: >80% Solubility Partially soluble in cold water. Soluble in hot water Viscosity at 20° Solution at 1%, 25° C, 20 RPM, spi ndle #4: 5,000 - 6,800

cps Heavy metals Lead Max 5 ppm Arsenic Max 3 ppm Mercury Max 1 ppm Cadmium Max 1 ppm Microbiological specifications Total plate count < 5,000 ufc/g Moulds and yeast < 500 ufc/g Escherichia Coli-coliforms < 1 ufc/g Salmonella Negative / 25g Source: Molinos Asociados S.A.C. (http://www.molinosasociados.com/), 2008 Tara powder is obtained by removing the seeds from the pods and then grinding the pods. First, the pods are filtered to remove any strange materials. Then, the seeds are removed from the pods. The pods, which constitute around 67% of the weight of the total fruit undergo an extraction process using hot water. The extraction is then purified by separation and filtration processes. Finally, the extract is dried and tara powder remains.

Table 1.4 Specifications of tara powder

Appearance Fine beige powder Tannins >52% Non-tannins <18% Insolubles <20% Moisture <10% pH at 6.9 °Bé 3 - 4 Particle size Mesh 100: >98% Source: Ecopro S.A. (http://www.ecoprosa.com), 2008

1.2 Main uses Gums such as Tara have a very wide range of applications:


• Thickener in food • Tannins for leather tanning • Binder for paint • Pigment binder for photography • Printing industry • Textile industry • Surface densifier and bonding agent in paper industry • Gelling agent for explosives industry • Thickener, emulsifier and stabilizer in the pharmaceutical industry • Cosmetics industry • Drilling aid in oil industry • Flocculation aid in water treatment and mining Tara is not suitable for all of these applications. The most common uses of tara are described below. The pods are used for tanning in the leather industry. A tannin is a substance which converts putrefiable hide or skin into imputrescible leather. Detailed information on specific uses are provided in Section 3.6. Tara gum, which is produced from the seeds is being used in the food industry as a binding agent and/or stabilizer. The pods are also used in medicines. Furthermore, tara is also used for wine-making (to improve taste). Tara is also the source of propyl gallate. Propyl gallate is an anti-oxidant, which is used in the food industry. However, these applications will not be discussed in this survey.

1.2.1 as a tannin Tannins displace water from the interstices between the protein (mostly collagen) fibres in the skin and cements the fibres together, preserving its flexibility and making it resistant to rot. Tara tannin is a pyrogallol or ‘hydrolysable tannin’. Alkaline hydrolysis of the plant extract produces gallic acid. Around 50-54% of tara consists of gallic acid. Tara tannin is stable to oxidation and therefore offers excellent lightfastness. Tara has a neutral colour and produces clear coloured leather, which makes it very suitable for the production of light coloured leathers. Tara is used for the production of leathers which are mainly found in garments (sheep, goat and calf skins), furniture leather, automotive upholstery, milled grain leathers, full grain shoe leathers and tapestries. Tara is also applied for retannage when the skins have been treated with chromium. The application of tara delivers uniform pastel shades. Tara is often mixed with a wide variety of other materials. Tara is particularly useful for making chromium- free leather. Tara is then applied in combination with other tannins. Please refer to 3.6 for more information on the use of tara as a tannin.

1.2.2 as a thickener and stabilizer in food and cos metics The endosperm of the seeds of the Caesalpinia spinosa plant can be ground to obtain tara gum. The hull of the seeds is tough and hard and requires special processes, such as acid treatment or roasting, to be removed before the endosperm and germ can be accessed.


Tara gum is a thickener and stabilizer. Tara gum produces highly viscous solutions, even at 1% concentration. Tara also has synergistic effects when used in combination with other gums, such as guar gum or Locust Bean Gum (LBG) to produce improved gel and colloid stabilities and properties. Tara gum is also applied to control the release of flavours, prevent particle sedimentation or droplet creaming, induce gelation, improve the emulsification of oils and stabilise foams.

Food applications of tara gum Demand for tara gum comes from food manufacturers. Food manufacturers are interested in tara gum for its functional attributes. The main reason for many food manufacturers to use gums, such as tara gum is their cost efficiency compared to other stabilizers such as starches or gelatine. Gums are used at levels below 1% and often even below 0.1%. Although the cost per kg is high compared to other stabilizers, the actual cost of use in the final product is often lower. In the food industry, tara gum is said to bridge the gap between guar gum, which is cold water soluble and LBG, which is insoluble in cold water. Although tara gum is not completely soluble in cold water, it provides high viscosity at low temperatures. Compared to LBG, tara gum delivers the same viscosity at lower concentrations. Moreover, it is more economic in use (20-25%) and the colloid produced is more resistant to high-shear breakdown during processing. Industry sources also indicate a negative characteristic of tara gum. Tara gum is not a good solution for formulations with a pH value below 4. Tara gum also has synergistic effects when used in combination with kappa-carrageenan, xanthan gum and agar, comparable to LBG. In the combination, tara gum increases gel strength and makes the gel less prone to syneresis (liquid separating from a gel on standing). Combining tara gum with xanthan gum produces long-term suspensions giving potential for use in salad dressings, mayonnaises, sauces and comparable products. Other subtle synergistic effects of tara gum are shorter flow characteristics and improved mouthfeel. Some examples of tara gum application are given hereafter. In frozen desserts, tara gum provides a fat-like texture (rich butter mouthfeel) and heat-shock protection by helping to prevent ice crystals. In the meat industry, tara is used to replace meat by water. In a study by the National Agricultural University ‘La Molina’ in Peru, it was shown that the use of 0.28% tara gum allows for a 15% decrease in meat content in sausages through binding water (+27%). Tara gum is also commonly used in fruit preparations. For more detailed information about product applications, you are advised to contact the technical experts of tara gum importers, which are listed in section 7.3 or order the Handbook of hydrocolloids by G.O. Phillips and P.A. Williams (http://www.woodheadpublishing.com/en/book.aspx?bookID=1478). Tara gum could be a solution for many more applications. Currently, a particularly interesting application is the replacement of fats in low-calorie foods. Gums have a wide range of function, including thickening, stabilizing, emulsifying, clouding and flavour encapsulation. These are functions which have often been performed by fats. Food manufacturers often apply these functions of saturated fats to improve the textural and mouthfeel properties of their food formulations. However, consumers are increasingly looking for low-fat and low-calorie foods. This has caused food manufacturers to look for alternatives to fats, as simply removing the fats would result in many changes in the organoleptic qualities of the food, such as reduction of viscosity or loss of mouthfeel. Gums offer a good solution.


Related to the value of tara as a fat replacer is the value of the dietary fibre content. Tara gum is a source of dietary fibre with very little if any caloric value added. Food manufacturers are interested in the possibility to claim a higher amount of dietary fibres when they use tara gum. Tara gum has to compete with many other gums. It is important to realize that the food formulation determines which type of gum a manufacturer will use. Gums perform differently in mixtures with other ingredients. Moreover, the temperature needed for the preparation of the food can also influence gum performance. Blends of different gums or blends of gums with other ingredients, which combine into unique properties, are also a common solution. An example is Equacia, a blend of gum Arabic with wheat fibres, from the leading gum Arabic importer CNI.

Cosmetic applications of tara gum Gums are valued by cosmetics companies for their emulsifying and adhesive properties. Gums are used by the cosmetics industry for their functional characteristics when synthetic substitutes are not available, less effective or when cosmetics companies want to produce a natural product. Gums are mainly used in creams and lotions. There is very little information available about the uses of tara gum in cosmetic applications. This indicates that the use of tara gum in cosmetic applications is limited. Importers in the EU have shown little interest in marketing tara gum in the cosmetics market.

1.2.3 as a natural remedy Information on the medicinal properties and uses of tara is scarce. In the production countries, tara is used as a traditional medicine. The medicinal properties of tara include: anti-inflammatory, anti-septic, anti-mycosis (fungal infection), anti-bacterial. Tara pods are used in Peru to prepare gargling infusions, which provide a natural remedy for inflamed tonsils, washing wounds, fevers, colds and stomach aches. Tara is also used in eyewash for its anti-bacterial properties. The gallic acid in tara is the active antimicrobial substance in tara (Adesina et al., 2000; Panizzi et al., 2002). The antioxidants in the tannins of tara are also said to prevent cardiovascular problems. Although various claims have been made regarding the medicinal properties of tara, marketing tara in the EU as a medicine is restricted. Please refer to Paragraph 5.1 for more information.

1.3 Customs/statistical product classification On January 1, 1988, a unified coding system was introduced to harmonise the trading classification systems used world-wide. This Harmonised Commodity Description System (HS) was developed by the World Customs Organisation (WCO), and identifies products by a six-digit code. Europe uses the system as a basis for their Customs tariffs and for the collection of international trade statistics. Tara powder does not have its own code in the Harmonized System, which is used in international trade. Tara powder can be registered by EU customs as part of the product group ‘Tanning extracts of vegetable origin’ (other than quebracho, wattle, sumach, vallonia,


oak, chestnut). The HS code of this product group is 3201909030. Note, however, that Peru has assigned a tariff code to tara powder: 1404902000. Tara gum does not have its own code in the HS either. Tara gum is registered by customs as part of the product group ‘Mucilage and thickeners whether or not modified, from vegetable product, not elsewhere specified’. The HS code of this product group is 130239. The Peruvian tariff code for tara gum is 1302391000.

1.4 Nomenclatures Tara gum is an approved food additive within the Codex Alimentarius Commission (Codex) system with INS (International Numbering System) number 417. The INS was developed to ‘provide an agreed international numerical system for identifying food additives in ingredient lists as an alternative to the declaration of the specific name which is often lengthy and a complex chemical structure’. Thus, 417 is the number used on food labels in Europe. It is shown as E417, where E stands for Europe. Note that the INS is an identification system and does not imply toxicological approval by Codex. The CAS (Chemical Abstracts Service) number is 39300-88-4. The EINECS (European Inventory of Existing Commercial Substances) number is 254-409-6.


2 PRODUCTION

2.1 Global production Approximately 80% of global production takes place in Peru. The source of tara, the plant Caesalpina spinosa is also found in Chile, Ecuador and Colombia. The plant is cultivated in China and also in India (Schiaffino, 2004). According to the World Agroforestry Centre, Caesalpinia spinosa is native to and even wider range of countries: Bolivia, Chile, Colombia, Cuba, Ecuador, Peru and Venezuela. The plant is also cultivated in Ethiopia, Kenya and notably Morocco. Industry sources say that tara gum can also be produced in countries where LBG is grown as production conditions for tara and LBG are similar. Locust beans grow on the carob tree which is native to the Mediterranean. The main LBG producing countries are Spain, Portugal, Italy and Morocco. Producers of LBG are said to switch to tara when prices for tara are high.

2.2 Production in Peru Between 1993 and 2003, tara production in Peru increased from approximately 6,000 tonnes to 13,264 tonnes of tara pods (SUNAD, 1995; Prompex, 2005). The primary production regions are Cajamarca (36%), La Libertad (22%), Lambayeque (21%), Ayacucho (7%), Huánuco (5%) (Prompex, 2005). Much of the tara production in Peru consists of wild collection. A major problem with the production of tara in Peru are the quality differences between wild collected tara and cultivated tara. The farmers and collectors that harvest the tara sell the tara on the open market to the highest bidder. In the past 4 years, supplies of tara from these producers did not meet demand and large buyers, purchasing large amounts of tara aggravated the situation of undersupply. Industry sources are speaking about a monopoly in the market for unprocessed tara with one or a few Italian companies dominating the market. As a result of the undersupply, prices went up. Some processors have therefore started their own tara production. However, it takes several years before the new tara trees start producing. Much of the Caesalpinia spinosa plants in Peru grow in regions which are prone to heavy rains. As the roads are generally poor in those regions, the rain can delay delivery of tara pods for weeks. Major exporters of tara products are Exportadora El Sol S.A.C., Exportaciones de la Selva S.A., Transformadora Agricola S.A.C., Productos del pais S.A., Exandal S.A., Agro export Cajamarca S.A.C., Extractos Tannicos S.A, Inka gums S.A. and Argos Export S.A.


3 EUROPEAN MARKET CHARACTERISTICS

3.1 Market segmentation Tara gum is produced from the seed of tara, while tara powder for the tanning industry is produced from the pods of tara. In that respect, the markets for tara gum and tara pods exist parallel to eachother and do not compete for supplies. Tara tannins are used in the leather industry. The leather production in Europe is mainly aimed at the footwear industry. Footwear has a 50% share in total leather production. The other markets for leather are the clothing industry (20%), furniture and upholstery (17%) and the leather goods sector (13%). The main market for tara gum is the food industry. The exact share of the food industry in tara gum purchases is not known. However, the fact that uses other than food applications are hardly mentioned by industry sources, indicates that the food industry dominates the market. Moreover, according to SRI Consulting, food applications account for 90% of the global market for hydrocolloids, which include gums, such as tara.Tara gum is used in many food and drink applications, including water based flavoured drinks, liquid milks, frozen dairy desserts, breads and bakery products, processed fruit and vegetables, mixed foods, prepared dishes, condiments, sauces and many other products. Tara gum is also used in the pharmaceutical and cosmetic markets. According to industry sources, the pharmaceutical market for tara gum is bigger than the cosmetic market. The EU market for organic food is growing at around 10% annually. Organic food currently accounts for approximately 1.5% of the total EU food market. Demand for organic tara gum is still small, estimated at only a few tonnes.

A niche market for tara gum is the consumer market. The only company known to target this market segment is the French company Kalys. For Kalys, the consumer market accounts for 10-15% of total sales. Refer to paragraph 3.4 for more information on the consumer market. 3.2 Status Quo: Market size, Imports and Exports Although exact figures for the size of the markets for tara based products are not available, it is possible to give an indication of the market size by using figures for related markets. Market size of the leather industry In 2006 about 3.710 leather/tanning companies have been estimated in EU 27.


Further structural data on the leather goods industry in EU-27: http://ec.europa.eu/enterprise/sectors/leather/statistics/index_en.htm Based on the turnover of the leather goods sector, Italy (€ 5,260 million) is by far the leading country in the leather sector, followed by Spain (€ 976 million), Germany (€ 480 million), France (€ 270 million), the UK (€ 220 million) and Bulgaria (€ 199 million) (European Commission, 2008). Based on the number of companies active in the leather sector, the leading countries are Italy (41%), Spain (16%), Poland (15%), Portugal (10%) and Romania (6%). The leather industry declined significantly between 1995 and 2005, due to appreciation of the Euro against the Dollar and particularly the increased competition from China. Added value decreased by 25% between 1995 and 2006. This put a lot of pressure on profit margins, but also on raw material procurement, including tannins. The strong competition in the leather sector resulted in the disappearance of 12% of the companies between 2000 and 2004 (EC, 2008). The leather industry in the UK declined fastest. Currently, the leather industry has great difficulties to cope with the effects of the global economic crisis. Demand for leather and, as a consequence, for tannins has decreased significantly. Some tanneries are currently only using 20-30% of their full capacity. The leather from the EU leather industry is supplied to the following sectors: Shoes (47%), furniture (21%), leather goods (e.g bags) (16%), clothing (6%), car upholstery (5%) and other (5%) (Italian Association of the Leather Industry (UNIC), 2007). Developments in consumer demand for leather differs between market segments. Although no data are available on the development of demand for leather products in particular, it is possible to provide data on the market segments in which leather is used. Household expenditures on clothing increased by 7% between 2000 and 2005. Most growth was realised in Eastern Europe. Consumption of household textiles increased by 4% in that period. Footwear consumption increased by 12%. Most growth was realised in Eastern Europe, Portugal and Finland. Furniture consumption increased by 7%. Developments in the markets of Germany and Italy lagged behind. Tara tannin and other natural plant tannins are still widely used in the leather industry, but synthetic chemical tannins such as chromium salts are dominant. Chromium salts are estimated to be used for the production of about 70-80% of the leather worldwide (Biomatnet, 2000). Vegetable tannins, including tara, are estimated to be used for the production of 20% of global leather production. According to industry sources, tara tannins are more expensive and the tanning process takes longer with tara tannins. Consequently, tanneries mostly use chromium salts. One industry source estimated the value of the EU trade in tara powder at 10,000-12,000 tonnes annually. Note that this figure cannot be confirmed.


Tara is one of many hydrolysable tannins. Chestnut, oak, valonea, sumach, divi divi, algarobilla, gambier, mimosa and myrabolans are the other common hydrolysable tannins. Compared to the other tannins, tara is particularly useful for the production of uniform pastel colours and has a high light fastness.

Market size of the food and cosmetics sectors Tara gum is a hydrocolloid. A hydrocolloid is substance which forms a gel with water. The global hydrocolloid market (excluding starches) was estimated at € 2.9 billion in 2008 (IMR International, 2008). The EU accounts for around one third of the global hydrocolloid market. Furthermore, food applications account for approximately 90% of the global hydrocolloids market (SRI Consulting, 2007). The cosmetics sector is a much smaller market for gums, accounting for less than 5% of the total market. Between 2003 and 2008, the global hydrocolloid market grew by approximately 1.5 to 2.5% annually. Table 3.1 Composition of global hydrocolloids market in 2008

Tara gum falls under the category ‘other’. Other products in this group are karaya gum, gum tragacanth, gum ghatti and cassia gum. Together these products are estimated to account for around 1% of the total hydrocolloids market. The table above clearly shows that tara gum only comprises a small part of the total hydrocolloids market and that competing products hold much larger shares. It is important to realize that the competing products have been on the market for a much longer time. Tara gum was only introduced on a commercial scale in the 1980’s, while other gums have been


on the market for centuries. In that sense, the market for tara gum still has to develop. Industry sources indicate that the market for tara gum is currently developing fast. However, it should be noted that tara gum cannot replace all other hydrocolloids. Paragraph 1.2.2 already stated that tara gum is primarily a substitute for LBG, which has a market share of around 2%. Therefore, demand for tara is strongly related to the market for LBG. Importers indicate that demand for tara gum went up in 2006-2007, because supplies of LBG were low. Demand for tara gum was negatively affected when supplies of LBG recovered. Importers switched back to LBG, as the price/performance ratio of LBG was better and they prefer to trade with European partners. Some importers say that users have already been switching back to LBG since two or three years. For more information on price developments, please refer to chapter 6.

Imports European trade statistics do not distinguish between tara powder and other ‘raw vegetable materials used in dyeing or tanning’ nor between tara gum and other ‘mucilages and thickeners whether or not modified, from vegetable product, not elsewhere specified’. Consequently, European trade statistics do not show how much tara is imported by the EU. Schiaffino estimated the share of Peru in global tara production at 80% in 2004. Importers have confirmed this figure. Export figures for Peru can therefore be used to get an indication of the imports of tara by Europe. Exports of tara (HS 14041030) from Peru for the leather industry in Europe increased from € 2.5 million in 2003 to € 3.1 million in 2006. In 2007, exports decreased to € 0.8 million and in 2008, exports of tara stopped (Prompex, 2008). Tara can no longer be exported in unprocessed form. Exports of tara powder (HS 1404902000) from Peru amounted to € 3.9 million in 2007. In 2008, exports reached € 5.8 million. Note that this increase partly reflects the shift from exports of unprocessed tara (HS14041030) to tara powder (HS1404902000). Exports of gallic acid (HS29182919) and propyl gallate (HS29182912) are insignificant. The latest figures on tara exports (HS 1404902000) from Peru show that demand for tara dropped since the global economic crisis. Total exports decreased by 88% in December 2008 compared to the previous month. In the period January-August, 2009, exports only reached 40% of the level of January-August 2008. The Italian market performed particularly bad. The share of Italy in Peruvian tara exports decreased from 17% in 2008 to only 10% in 2009. Many exports were diverted towards China, which significantly increased its share in Peruvian tara exports, from 18% in 2008 to 37% in 2009 (Departemento Comercial de la Cámara de Comercio Suiza, 2009). Peru is by far the leading supplier of ‘raw vegetable materials primarily for dyeing or tanning’ to the EU. Tara powder is only one of the vegetable materials which are used in the EU as a tannin. Other vegetable tannins, such as Gambir and Myrabolan, are supplied by India and Indonesia. The principal market in Europe for tara powder is Italy, which has a major leather industry (Eurostat, 2002). Other major importers in 2008, according to their shares in Peruvian tara exports were Belgium (7%), France (4%) and Germany (3%) Sistema Integrado de Informacion de Comercio Exterior, 2009). Exports of tara gum from Peru for the food industry in Europe increased from € 0.6 million in 2003 to € 3.4 million in 2007 and € 4.6 million in 2008 (Prompex, 2008). Tara gum competes with other thickeners. The main suppliers of ‘mucilages and thickeners derived from vegetable products’ are the Philippines, Norway, Chile, Indonesia and India. All of these countries are major producers of seaweeds used for production of competitive products like


carrageenan and alginates. The principal market for tara gum and other ‘mucilages and thickeners derived from vegetable products’ in Europe is Denmark. However, industry sources have indicated that Denmark does not import much tara, but mainly imports other mucilages and thickeners. Other significant importers of ‘mucilages and thickeners’ are the UK, France, Germany, Belgium, The Netherlands and Italy. Export figures for tara products from countries other than Peru are not available.

Exports Exports of tara based products by EU countries is small and mainly consists of re-exports.

3.3 Consumption patterns and trends

Leather sector The leather industry in the EU is under pressure. Increasing prices of hides and skins, increasing environmental costs and increasing international competition are forcing tanneries to reduce processing costs or stop completely. The tanneries in Denmark and Ireland have already stopped their activities. In Germany, a major application of tara is upholstery leather for the car industry. Due to the decline in car production, as a result of the financial crisis, demand for tara for the production of upholstery leather has decreased. Strict environmental standards introduced in Europe regarding waste and water treatment have obliged the companies to make significant progress in this field. Producers estimate that the implementation of REACH will lead to further increase the price of chemicals. More information on the implications for tara suppliers is provided in section 3.6. During the leading trade fair for the leather industry, Lineapelle in Italy, the following elements of popular design were identified: authentic elegance, natural quality, soft feel, warm natural colours and environmental-friendly processes (Lineapelle news, 2008).

Food and cosmetics sectors For the period 2008-2012, growth in the hydrocolloids market is expected to reach 2.5-3% annually. However, the growth rates for hydrocolloids differ significantly between products. The highest growth rates are registered for xanthan gum, pectins and carrageenan. The market for tara gum is estimated to be stable. In general, all natural gums markets are consolidated. Importers indicate that margins have become minimal and that demand for natural gums does not show any signs of growth. The main cause of the current low margins in the gum trade is the competition from (modified) starches, carrageenan, xanthan gum, pectins, agar-agar, alginates and synthetic gums and resins, which are manufactured industrially through biotechnology. The competition from these substitutes is largely the result of supply chain problems when using natural gums. The production of natural gums is subject to climatic conditions. Bad climatic conditions can lead to small harvests and a shortage in supply. Manufacturers need a constant and reliable supply of ingredients. Sudden shortages can lead to production problems, which are harmful to sales and relationships with buyers. Another competitive advantage of synthetic gums and resins over their natural counterparts is their homogeneity and quality consistency. Natural products are sometimes derived from different botanical sources and can vary a lot in quality. In conclusion, synthetic gums pose a severe threat to


natural gums, such as tara, if suppliers of the latter do not stabilise their supplies and do not guarantee quality consistency. The substitution of gums and resins is accelerated by the increasing scale of operations of many EU ingredient suppliers. The ingredient suppliers follow developments in the food and cosmetics industries which are consolidating. The larger companies put more emphasis on stability of supply in terms of both quantity and quality and are developing a strong preference for synthetic substitutes. Although the substitution of natural gums by synthetic products is a dominant trend in the EU food and cosmetics industry, there is one trend countering the effects. This trend is the increasing demand for healthy food products. The increasing awareness of the importance of diet and nutrition among EU consumers has been accompanied by increasing concerns about the safety of food. Together with a higher appreciation of products from nature and a growing environmental consciousness, this has made natural products more popular. Food manufacturers have responded by producing more natural products. In 2007, more than 4,000 processed food products labelled as additive- and preservative-free were released in Europe. The niche market for consumer tara gum is a very different market from the industrial market. Volumes are much smaller and packaging is much more important. For example, agar-agar is offered in sachets of 2 grams. Another aspect of marketing gums in the consumer market is the provision of recipes. Kalys develops recipes (applications) to promote the use of their gums. The products are sold through specialized retailers (culinary shops) and at cooking lessons. The consumer market for gums is mainly driven by molecular gastronomy. The Spanish cook Ferran Adria is famous for his cooking skills using molecular gastronomy. His recipes are very popular among professional and hobby cooks in many countries. The largest groups of professional and hobby cooks applying molecular gastronomy are found in France, Spain and Belgium. For a better understanding of molecular gastronomy, please refer to ‘Texture: a hydrocolloid recipe collection’ available at: http://khymos.org/hydrocolloid-recipe-collection-v2.2-screen-res.pdf.

Cosmetics The EU natural cosmetics markets has grown around 20% annually in the last couple of years and is expected to have exceeded € 1 billion in 2007, with a share of 2.0% of the total cosmetics market. The fastest growing markets are Germany and France. Italy and Germany are the largest markets, accounting for almost 70% of total EU sales. German-speaking and Nordic countries have a high per-capita spending on natural and organic cosmetics while the UK market is developing fast. The UK is among the countries with most natural product launches (Colipa, 2007). Interesting to note is that an increasing proportion of natural cosmetic products is now also organic. Of the 15,000 natural cosmetic products launched worldwide in 2007, Mintel estimates that around two thirds is also organically certified, or at least contains a large proportion of organic ingredients (Mintel, 2008).

3.4 Opportunities in the food sector Fat replacement


Changes in consumer preferences are causing food manufacturers to constantly adapt their food formulations. A current trend in consumer preferences which affects the market for tara gum is the preference for low-fat and low-calorie foods. Gums, such as tara gum can be used in fat-replacement systems and have consequently become of interest to food manufacturers. Traders of gums can profit most from this trend by providing complete and accurate information about the characteristics and appropriate use of gums in fat-replacement systems. Exporters can facilitate this provision of information by supplying as much information about their product as possible. This also offers possibilities for value addition. Sources providing information on fat replacement by gums include Food Technology magazine (1999, Vol. 53, No. 8: http://www.dict.uh.cu/Bib_Dig_Food/ift/ft/ft53/08-99-p&t-ing.pdf) and http://hubpages.com/hub/Fat_Replacement_Products. The fat replacement capacity also makes tara an interesting ingredient for nutraceuticals, such as weight management products. Natural Another change in consumer preferences with implications for tara gum is the natural trend. Many consumers in Europe have developed a preference for natural products. This also includes foods with additives. A large number of food manufacturers respond to this demand for natural products by substituting synthetic ingredients with natural ingredients. Again, traders have an important role in informing and advising food manufacturers about natural gums. Exporter can facilitate this process by supplying information. The market for organic tara gum is small, but growing. Importers indicate that the availability of organic tara gum is limited and that organic tara gum offers answer to the specific requirements of specialised organic food producers. Consumer market The consumer market for tara gum as described under section 3.3 is still a niche market requiring extensive business-to-consumer promotion. However, margins are high and there is potential for growth. Note, however, that this market will always remain a niche market, due to the limitations of the applications in molecular gastronomy.

3.5 Opportunities in the skin care and cosmetic sec tor The natural trend, which is visible in the food sector is also recognizable in the cosmetics sector. Cosmetics manufacturers are increasingly using natural ingredients in their products. However, interviews with traders of tara gum made clear that the cosmetics sector is not particularly interesting for exporters of tara gum. The market is very small and cosmetics producers only need small quantities. Direct imports by cosmetics producers are negligible or even non-existent. Please refer to chapter 4 for more information on trade channels for the cosmetics market.

3.6 Opportunities in the leather industry sector Interesting countries Italy is by far the leading producer of leather in the EU. Therefore, most trade in tara tannins is concentrated here. The shoes and clothing segments are particularly important for the Italian leather industry. Germany, and to a lesser extent also France, are particularly interesting markets for tara tannin as a substitute for chrome in the car upholstery segment.


Most growth in consumption of leather products takes place in Eastern Europe. The major leather producing country in this region is Bulgaria. Bulgaria could therefore be an interesting country for suppliers of tara powder. However, keep in mind that the European leather industry is internationalised and that countries in Western Europe are also very active in Eastern Europe. Reduction of Chromium use Currently, many companies in the EU leather industry are working hard to limit the amount of chromium being returned to the environment from tanneries. Even though trivalent chromium has been shown to be relatively harmless in sewerage sludge from tanneries, the European Union sets limits for chromium in tannery waste through Integrated Pollution Prevention and Control (IPPC) directives. Environmental costs are estimated at around 5% of the turnover of European tanneries (Integrated Pollution Prevention and Control (IPPC) European Commission, 2003). Tanneries are improving their waste management, but are also trying to replace chromium salts and other metals or at least minimize their use. The automotive industry is one of the main drivers of chromium reduction in leather tanning. Tara exporters thus have a great opportunity in the segment for car upholstery. Tara tannin is an excellent substitute for chromium. Research into more environment friendly substitutes for chromium salts could further increase the opportunities for vegetable tannins, such as tara: http://ec.europa.eu/research/agriculture/projects/qlrt_1999_00913_en.htm Because of potential environmental problems perceived with chromium-tanned leathers, many automotive interior manufacturers now call for chromium-free tannages. A common way of achieving this is for a glutaraldehyde pre-tannage to be followed by syntans (synthetic tannins) and vegetable tannins, using Mimosa for black dyeings and Tara for light colours. The resulting leather has the added benefit of shrinking less (compared to chrome leather) when making up the seats and panels inside the vehicle. However, new market opportunities must be seen as limited because a smaller part of automobiles uses leather upholstery and form this share only a part uses light colours. In this context the global economic crisis has also lead to a significant decline in sales of luxury cars. Leather characteristics Tara is particularly useful for the production of vegetable-tanned, white, tight, full, soft leathers and has a high light fastness. Vegetable tannins, such as Tara, get more deeply and uniformly dispersed in the hide, resulting in better roundness and feel. Even areas with prominent growth marks and around backbone show better filling and even dyeing. Another strength of tara tannin is the positive influence on the leather’s grain resistance to breaking load. Extract mixtures for vegetable tanning contain up to 50% tara powder. In combination with other vegetable tannins, the light fastness of the latter is considerably improved. In retannage of chrome leather (wet-blue), tara tannins, applied after neutralisation, lead to uniform pastel shades. Tara can be used for the production of both full grain and corrected grain leathers. Re-tannage of chrome leathers is done with 4-7% tara powder, based on the shaved weight. Production of full grain shoe leathers is done with 6-12% tara powder.

3.7 Opportunities in the natural remedy sector (inc lusive information on scientific proofs of efficacy)


No opportunities were identified for tara, as tara cannot yet be sold as a medicine due to EU legislation. The first step towards marketing of tara as a medicine is to get marketing authorisation. The company NeoTropico Consultants (http://www.neotropico.net/) can be hired to produce a monograph for tara.


4 TRADE STRUCTURE

4.1 General trade structure

Exporter

Importer/Processor

Trader

End-user

Agent

Tara gum Gums enter the EU through mostly specialised importers, concentrated in Hamburg (Germany) and Marseilles (France). Direct trade with end-users in the food and cosmetics industries is not possible as many end-users require small quantities, which cannot be imported cost effectively, or do not have the means to import the products themselves (quality control, logistics, customs). Importers and often traders or agents handle this business. The number of traders handling gums in the importing countries has declined considerably in the past 10 to 20 years. The decline is partly the result of consolidation in the industry. An example of this consolidation is the sale of Alfred L. Wolff’s business in a number of products to A2 Trading in February 2008. Alfred L. Wolff was a major trader in gums. Gums are processed on large scales by various companies in the EU, both importers and traders. Consequently, most demand for unprocessed gum comes from the facilities of these importers and traders. There are no importers which have specialised in the supply of the pharmaceutical or cosmetics market. Importers focus on the food market and sometimes find extra customers in the pharmaceutical or cosmetics markets. The importers sell the products either directly to the end-user or to other traders or agents. Traders keep stock, while agents never own the products. If more traders or agents are involved in the value chain, they often process the product and/or provide extra services to the end-users. Those services are usually technical solutions for end-users. For example, a food manufacturer requiring improved mouthfeel and stability of its food formulation may get advice from the trader on the (blend of) gums to use. End-users of gums can have a wide variety of problems with food formulations, which require gums. The variance in the problems requires that solutions are tailor-made. Traders in the EU therefore gather information on the food formulation of the end-user in which the gum (blend) will be used and on the manufacturing process. The information is then used to find the correct gum solution.


Tara powder The trade in tara powder for the leather industry is very similar to the trade in tara gum. In the EU, tara powder is mostly imported by specialised wholesalers of input materials for the leather industry, including tannins. The number of tara powder importers is not known. Many importers only purchase erratically. They wait for low prices and sell the tara powder over a long period, sometimes even years. However, it is estimated that regular trade is dominated by a handful of companies, including Silvateam. The importers break the bulk and distribute the tannins in smaller quantities through a network of smaller wholesalers and agents. The difference between traders and agents is that traders keep stock, while agents never own the products. Agents offer a variety of tannins to the tanneries and advise the individual companies on the best tannins for their applications. Many wholesalers and agents also prepare mixes of tannins, which combine different product characteristics, such as light colours and light fastness. They can also prepare tailor-made mixes to tanneries. Direct trade with tanneries is not very common, due to the small quantities required by the tanneries and a need to limit stocks to a minimum.

Developments in EU distribution The current trend amongst end-users in the gum market is to skip the blenders and deal directly with the producers or importers. The end-users no longer accept to rely on blenders for their supplies of gum blends. Blenders create blends without disclosing the information on the composition of the blend to the end-user. This makes the end-user completely dependable on the blender as it is a costly process to find another solution. In the past, some blenders used this advantage to increase their prices without negotiating with the end-users. Since recently, end-users are increasingly asking for the formulations of gum blends and purchase the gums themselves. The blending process is also done by the end-users or is outsourced to blenders. The effect of the trend described above is a decreasing number of blenders. Another development is concentration of the industry. Due to the consolidation in the food and cosmetics industries in the EU, trade in natural ingredients for these industries is concentrating. Companies in the trade of natural ingredients are increasingly producing both conventional and organic product lines, and are offering ingredients destined for the cosmetic and food sectors. The expansion offers the companies economies of scale. In the leather industry, concentration is the result of past problems of undersupply, which led to severe competition between processors of tara. The least competitive companies were pushed out of the market. Due to increasing expectations of the reliability of supplies in EU trade, many importers are becoming more hesitant to switch between suppliers. Importers strongly prefer long-term business relationships over short-term profits. Even when new suppliers offer better price-quality ratios, importers tend to favour existing business relationships. Switching to a new supplier implies a time-consuming approval process. The importer will have to request and assess a lot of information on product quality, supply capacity, management, company track record, etc. A thorough assessment is required to make sure that the new supplier is reliable.

4.2 Value chain Peru It is estimated that only 3% of the tara production in Peru is commercialized in Peru. The other 97% is exported.


The value chain in Peru for export tara consists of 5 chains. • Inputs • Production • Wholesale • Processing • Export Inputs are provided by forests (Caesalpinia S. plants), cattle farms (manure), nurseries (seeds) and equipment suppliers (manure, equipment). Production is the responsibility of the farmers. The farmers prepare the soil, weed, sow, fertilize, irrigate, trim and harvest. The farmers also grade the product. Wholesalers organize bulk. The wholesalers unload, grade, store, package, load and transport the products. Processing adds value to the physical product. Processing mainly takes place in Lima, where the companies are located with the equipment which is required for processing tara. The activities undertaken by processors are unloading, storage, processing, selection, packaging and transport. Possible value addition activities for tara gum include: organic production, grading tara seeds according to origin/viscosifying strength, minimizing contamination by improving hygienic production conditions (HACCP), grinding of the endosperm to produce a powder, further grinding with finer mesh sizes, blending tara with other gums to produce gum blends which tailor to specific needs of end-users, packaging in paper bags with polyethylene lining (plastic inner bag), information provision (improving documentation). Export is the last chain of the value chain for tara in Peru. After that the product enters the EU value chain. Exporters arrange international transport and deal with customs. They also coordinate the wholesale and processing of the product to be able to supply their customers on time (logistics).


5 EUROPEAN MARKET REQUIREMENTS The following requirements are all based on the work done by the Codex Alimentarius. Consequently, the requirements are not very different from countries outside the EU.

5.1 Legal requirements

Food products The EU has several legislative requirements for imported food products, in order to provide safety to the consumers. The following requirements are important for tara gum: • General Food Law 178/2002/EC: basic principles • EU Official Controls Regulation 882/2004: for imported products • EU Regulation 852/2004: food hygiene • EU Regulation (EEC) 834/2007 (has come into force in 2009): organic food • EU Regulation 89/107: food additives

The General Food Law (GFL) 178/2002/EC, established in 2002, contains the basic principles of food legislation in Europe. The GFL aims to prevent fraudulent or deceptive practices, adulteration of food and other misleading practices. This is realized through legislation on the product, the processing/handling and communication about the product. Furthermore, the EU Official Controls Regulation 882/2004 applies to food products that have no animal content, and are imported from outside the EU. The regulation ensures official control performed for the verification of compliance with the food law. When products are suspected to be a risk to public health, the product may be banned. Moreover, when exporting a food product to the EU, it needs to comply with the European food hygiene legislation, which has been renewed in 2006. The general hygiene requirements for all food business operators are laid down in Regulation (EC) 852/2004. The new regulation on organic markets, which has come into force in 2009, brought several improvements to the legislation on the organic market. The EC no longer restricts organic imports to those from third countries which have organic standards and a control system officially recognised as equivalent to that of the EU. From 2009 on, the EC also accepts authorisations from inspection bodies approved by the EU in third countries which are not on this list. Important inspection organisations in the EU include Ecocert (Germany, France, Belgium, Italy), BCS and Naturland (Germany), SKAL (The Netherlands), Soil Association (United Kingdom), and KRAV (Sweden). For exporters of tara, the legislation of the EU basically implies the following: Tara may not be contaminated by substances unintentionally added to the product. This is regulated through contaminant levels as set by the EU. Exporters can prove that they comply with this legislation by providing a certificate of analysis, issued by an approved laboratory. Processors of tara (and in the future maybe also producers) should put in place, implement and maintain a permanent procedure based on HACCP principles. Next to HACCP, food business operators (incl. producers and exporters) are also responsible for the traceability of their products. Food business operators have to provide the correct information on product labels. Labels have to indicate: (1) the name under which the product is sold; (2) the list of ingredients; (3) the quantity of certain ingredients or categories of ingredients as provided for in Article 7;


(4) in the case of prepackaged foodstuffs, the net quantity; (5) the date of minimum durability or, in the case of foodstuffs which, from the microbiological point of view, are highly perishable, the ‘use by’ date; (6) any special storage conditions or conditions of use; (7) the name or business name and address of the manufacturer or packager, or of a seller established within the Community. (8) particulars of the place of origin or provenance where failure to give such particulars might mislead the consumer to a material degree as to the true origin or provenance of the foodstuff; (9) instructions for use when it would be impossible to make appropriate use of the foodstuff in the absence of such instructions; (10) with respect to beverages containing more than 1,2 % by volume of alcohol, the actual alcoholic strength by volume. Food business operators may only use the organic label when they comply with Regulation 834/2007 on organic production and labeling. Furthermore, tara gum can no longer be used in jelly mini-cups, which have been banned by the European Commission. The ban was imposed as the jelly mini-cups have shown to constitute a risk for choking. Tara gum is not subject to the novel food regulations, as tara gum was already accepted by the market before 1997 and has been considered safe by the Scientific Committee for Food (SCF). Moreover, food additives, such as tara gum, are excluded from Novel Food Regulation, as they are covered by other legislation (EC/89/107). Several countries also have regulations on the composition of typical products from their country, such as beer in Germany and pasta in Italy. Companies in those countries, which include potential buyers of tara gum, are not allowed to use other ingredients than the ones which are permitted (e.g. wheat flour and water for pasta). Note that the limitations for use do not require any actions from tara gum exporters. They only reduce the potential demand for tara gum slightly.

Medicinal products The EU has very strict requirements for the marketing of medicines. Medicinal products require marketing authorisation, which is described in Directive 2001/83. Exceptions are traditional herbal medicinal products with a long and proven use in the EU (Directive 2004/24). However, products which only have a proven use outside the EU will still require marketing authorisation. The EU has established the Committee on Herbal Medicinal Products (part of the European Medicines Agency) to prepare monographs for traditional herbal medicinal products. However, the committee has not yet established a monograph for Caesalpinia spinosa. Moreover, other sources consulted for this survey haven’t published monographs on Caesalpinia spinosa either. Consequently, a monograph for Caesalpinia Spinosa has to be elaborated, containing all the available scientific evidence, to get marketing authorisation from the EU. The article ‘ISLMRs from tara’ can be used to substantiate claims about the use of tara for the treatment of infections (http://findarticles.com/p/articles/mi_hb3363/is_/ai_n29256690). The article shows that tara can help to cure MRSA infections by intensifying MRSA’s susceptibility to [beta]-lactams.


5.2 Importance of existing quality standards

Company ISO 9000 and 14000 Although not an obligatory standard for producers of food ingredients, the ISO 9000 is strongly increasing in importance in Europe. Companies can obtain a certificate that is valid for three years. Keep in mind that to become ISO 9000 certified means that the whole company must be dedicated to it, and that it takes time and financial resources. The ISO 9000 standards provide a framework for standardising procedures in an entire organisation, regarding quality, health, safety and environmental issues. Furthermore, the best known environmental system is ISO 14000, within which ISO 14001 is specifically aimed to minimize a company’s impact on the environment. ILO and SA8000 The International Labour Organisation (ILO), installed Conventions and Recommendations so that basic human and labour rights are respected within a company. Issues that are addressed in the Conventions are for example minimum wage, minimum age, and discrimination. The ILO is internationally accepted and provides information and guidance to companies regarding human rights. SA8000 is one of the most well-known voluntary global standards to ensure social accountability. SA8000 includes standards in the form of a Code of Conduct. The codes are based on the ILO Conventions and on other human rights Conventions. GMP and GACP The Good Manufacturing Practice (GMP) and Good Agricultural and Collection Practice (GACP) state the minimum quality and hygiene requirements. These standards are binding for UN member states and have to be incorporated in their legislation. HACCP The Hazard Analysis Critical Control Point (HACCP) system focuses on hygiene procedures in food production processes throughout the production and transport chain. Through monitoring the process (rather than the final product), the system is established to ensure food safety. The HACCP system is applicable to companies that process, treat, pack, transport, distribute or trade foodstuffs. The new regulation (EC) 852/2004 is based on the HACCP system and also applies to products that are imported into the EU. Note that the HACCP system is increasingly being used in the cosmetic and pharmaceutical industries.

Product Tara gum At EU level, quality standards are set by the European Commission. These standards are minimum requirements. Products which do not meet these requirements cannot be imported into the EU, no matter what the requirements of the importer are. The Joint FAO/WHO Expert Committee on Food Additives (JECFA) and the EU Scientific Committee for Food (SCF) have allocated tara gum an Acceptable Daily Intake (ADI) level of ‘not specified’. Tara gum is approved in the EU since 1995. The product specification of the EU for tara gum is shown in the following table. Criterion Specification limit


Loss on drying Not more than 15% Ash Not more than 1.5% Acid insoluble matter Not more than 2% Protein Not more than 3.5% Starch Not detectable Arsenic Not more than 3 mg/kg Lead Not more than 5 mg/kg Mercury Not more than 1 mg/kg Cadmium Not more than 1 mg/kg Heavy metals (as Pb) Not more than 20 mg/kg Tara gum is available in viscosities of 2,500 to 6,000 cps (1% concentration). However, in the EU, only two grades of Tara are traded. The medium viscosity grade offers 4,500 cps in a 1% concentration. The high viscosity grade offers 6,000 cps in a 1% concentration. It is important to realize that importers also assess the variance in viscosity in the gum supplies. Normally, the variance of a batch of high viscosity grade should be between 5,500 cps and 6,500 cps. The smaller the variance, the better. Another aspect of quality is mesh size. Importers often prefer finer mesh sizes. Importers also value the origin of the gums. Gums from different origins can differ in transparency level and molecular changes in their applications. Batch sizes are also an important indication of the quality consistency that suppliers can offer. Larger batch sizes (>10 tonnes) indicate a better quality consistency. Larger batch sizes also have the advantage that the importer has to perform less analyses. European importers attach great value to certifications. ISO and HACCP are widely recognized. Importers prefer to trade with certified suppliers and are prepared to pay a price premium for it. Please refer to chapter 6 on prices for more information. Importers have shown interest in organic certification. However, organic certificiers cannot certify wild collection. Requirements from food, pharmaceutical and cosmetics producers do not differ. However, it is expected that the analysis of allergenic substances will be more important for cosmetics companies than for food producers. Tara powder There are no known quality issues for tara powder. The quality of tara powder only depends on the weather, which is a problem for the entire industry. Quality requirements are less strict than in the food industry. However, tannin content is of importance, iron content, purity, colour and a fine mesh size. Tannin content must be at least 50%. The iron content must not exceed 200 p.p.m. Producers of tara powder can minimise contamination by iron by using stainless steel grinding machinery. The colour must be as light as possible. The optimal mesh size is 200. Mesh sizes of 150 are also encountered in the trade, but are not recommended. Variance in the quality of the powder must be as small as possible, as it affects the quality of the leather. Moreover, requirements on company level are similar to the requirements for suppliers of tara gum. Note that the reliability of supplies is of major importance. Tanneries cannot change the formulation of their mixes, which contain tannins. Therefore, they need a constant supply of uniform quality tannins. Some EU traders of tara tannin also supply liquid tara, which is tara powder dissolved in water. Supposedly, liquid tara mixes better with other ingredients for tannage.


5.3 Relevant trade related issues

5.3.1 Registered Trade Marks in connection with Tar a The World Intellectual Property Organisation (WIPO) is an agency of the United Nations, established to develop an international intellectual property (IP) system. A trademark is a distinctive sign which identifies certain goods as those produced by a specific person or enterprise. Through a trademark, the owner is protected by having the exclusive right to use the mark to identify goods. Trademarks can for example be one or a combination of words, a drawing, symbol, or audible sign. The following trademarks were identified for products including tara gum: • Palgum® is the trademark of Carob S.A. from Spain. • Polygal® is a trademark of Polygal AG from Switzerland. Note that no trademarks were found in the database of the Office for Harmonization in the Internal Market (OHIM) for gum products (for the food and cosmetics industries). Other tradenames used for gums are provided below (names with the ® symbol are known to be registered tradenames): • Caregum® and Careguar® from Caremoli S.p.a.: http://www.caremoligroup.com/ • Cremodan®, Meypro®, Grindsted® and Jaguar from Danisco:

http://www.danisco.com/cms/connect/corporate/media+relations/news/frontpage/businessupdate_293_en.htm

• Victus, Carobfiber, • Polygum® and Polygel® from Polygal: http://www.polygal.ch/ • Soageena, Soalocust from Mitsubishi Rayon Co: http://www.mrc.co.jp/trademark.html • Satiagum, Aubygel, Satiagel from Cargill: http://www.cargilltexturizing.com • Seagel, Gelcarin, Lactarin, Manucol, Manugel from FMC: http://www.fmcbiopolymer.com/ • Secogel, Secolacta and Ibergel from Hispanagar: http://www.hispanagar.net/ • Aquagel from Marcel Trading Company: http://www.marcelcarrageenan.com/ • Diagum™ of Lubrizol: http://www.lubrizol.com • PROVIgel®, PROVImel® from Provisco: http://www.provisco.ch/ • Deltagel, Betagel and Sherex from Kerry: http://www.kerrygroup.com/ • Ticaloid®, Ticagel®, Aragum®, Caragum® and others from TIC gums:

http://www.ticgums.com/ • Vidogum and Vidocrem from Unipektin: http://www.unipektin.com/ • Nutriguar and Prokol from Hindustan Gum & Chemicals Ltd.:

http://www.hindustangum.com/ • Kelcogel® (gellan), Kelgum® (xanthan), Keltrol® (xanthan), Genu® gum and more from

Kelco: http://www.cpkelco.com • Liangel™, Oenogum®, Instantgum®, Spraygum®, Gelamix™, Fibregum™, Biogum from

CNI: http://www.cniworld.com/ • Premcas and Foodaid from Premcem gums: http://www.premcemgums.com/ • Aargum from Rajasthan Gum industries: http://www.aargum.com/ (not active at time of

writing) • Bengel, Benvisco, Puregell from Shemberg: http://shemberg.com.ph/ • Easea from East Coast Seaweed Inc. : http://www.seaweedindia.com/index.html • Supreme from Supreme Gums Pvt. Ltd.: http://supremegums.com/


Some of these tradenames have been registered and others not. Use the Madrid Express Database of the WIPO to find out if a trademark is registered (http://www.wipo.int/ipdl/en/search/madrid/search-struct.jsp). In the databases of OHIM and WIPO, no trade names were found for tannins. However, internet searches gave the following results: Ormotan® from Silvateam, Tanosin from Sochive, Lecosin from FGL, Fortan from A-Forte, Chimitan from Stefani Chimis, Floretan from Codyeco and Chemitan from Chemipol.

5.3.2 Registered patents in connection with Tara A patent search is done at ESP@CENET (http://ep.espacenet.com). Searching for the term ‘tara’ in the titles and abstracts of patents results in 222 patents (of which one refers to a new plant variety).

Food The search was refined by selecting European Classification codes ‘A21’ and ‘A23’, which are defined as ‘Baking; Edible doughs’ and ‘Food or foodstuffs; their treatment, not covered by other classes’. The new search led to 25 patents (http://v3.espacenet.com/results?EC=A21+OR+A23&AB=tara&sf=a&DB=EPODOC&PGS=15&CY=ep&LG=en&ST=advanced). In many of these patents, tara is mentioned as one of the optional substances for the patented mixture. An example of these patents is ‘Gelling compositions’ from Gen foods corp, which refers to a gelling system containing xanthan gum and either starch or tara gum. The gelling system offers a solution to problems regarding acidic stability and syneresis. All the patents refer to combinations of certain products with tara to prepare foods with specific characteristics. These combinations are developed by food manufacturers. They do not have implications for the production or processing of tara.

Leather Searching for the terms ‘tara tannin’ in the titles and abstracts of patents results in 9 patents (http://v3.espacenet.com/searchResults?locale=en_EP&AB=tara+tannin&ST=advanced&compact=false&DB=EPODOC). Of special interest are the two results of the search using the term ‘tara’ and selecting the European Classification code ‘C14C’, which is defined as ‘Chemical treatment of hides, skins or leather, e.g. tanning… compositions for tanning’: http://v3.espacenet.com/searchResults?locale=en_EP&EC=C14C&AB=tara&ST=advanced&compact=false&DB=EPODOC

Medicines A patent search for ‘tara’ in titles and abstracts and a selection of European Classification code ‘A61’ (defined as ‘Medical or veterinary science; Hygiene’) results in 22 results. However, a quick scan of the patents reveals that the patents mostly relate to the use of tara as a thickener in preparations.

5.4 Tariffs, quotas and taxes


Tariffs on raw materials are generally low, in particular for ingredients originating in developing countries. In order to support supplies from developing countries, the EU operates the Generalised System of Preferences (GSP). Under the GSP scheme of the EU, imports from a number of developing countries are admitted at a reduced tariff or at a zero tariff. Peru belongs to the GSPE group of countries. A "EUR-1 form" has to be provided by the exporter to take advantage of the GSP tariff. The EUR-1 form is a certificate of origin that is used in preferential trading between the EU and associate countries. Imports of tanning extracts of vegetable origin (other than quebracho, wattle, sumach, vallonia, oak, chestnut) are restricted by an import tariff of 5.30%. Imports of tara gum are unrestricted. A 0% import tariff applies. No quotas exist for tara powder and tara gum. The VAT on these products differs per country. The standard VAT rate varies between 15-25%. Reduced rates of 0-20% often apply to foodstuffs. Note, however, that VAT has to be paid on all products and are not of concern to exporters, as it is paid by the importer to the customs authorities.

5.5 Packaging, documents, marking and labelling

Packaging Tara powder for the leather industry is packaged in polypropylene (PP) or polyethylene (PE) bags (plastic) of 25 or 50 kg. The packaging of tara gum should preserve the organoleptic qualities of the gum, such as colour and viscosity. Gums are hygroscopic and should therefore be packaged in waterproof material. Tara seeds can be packaged in paper bags, cartons or jute bags. Tara gum powder is normally packaged in multi-wall paper bags with a plastic (e.g. polyethylene) lining.

Documents The documents required by gum importers include a certificate of analysis (stating amongst others if the product is foodgrade, that the product is allergy free and the amounts of heavy metals), GMO-free certificate, certificate of origin and a health certificate. Tara powder importers can also demand a certificate of analysis (stating tannin content, solubility, pH value in a certain solution). A packing list and a bill of lading are also required for the transport of tara products. Cash-Against-Documents (CAD) and letters of credit are both used for payment of the goods. Some importers prefer CAD, as it is a faster payment method for them.

Marking The required marking mostly depends on the specific requirements of the importer. Information that is often required includes date, supplier name, address, product name, net weight, if the product is intended for food use, grade, recommended storage conditions. The


information should be in English and using EU measures (e.g. grams). Please, refer to section 5.1 for details on marking requirements.

Labelling Quality labels, such as a label for organic products or Kosher or Halal products could also be put on the packaging. Sometimes, the attachment of certain documents can also be required. These may include a certificate of analysis or a certificate of origin. Depending on the sourcing methods of the importer, documentation might be important and elaborate or obsolete. Some importers prefer to visit companies from which they have received interesting offers, while others prefer to gather documentation which proves that the company can meet their requirements.


6 PRICES

6.1 Price developments

Tara powder According to industry sources, the price for tara powder was approximately € 0.70 / kg FOB Callao early 2007. In 2008, prices rose to € 1.40 / kg FOB Callao. In September 2009, price quotations stated prices of around € 0.76 / kg FOB Callao. The variation in price quotations has had a large impact on the trade in tara powder. Industry sources have become frustrated from the price fluctuations. Purchasing tara for a good price became more difficult and long delivery times (4-5 months) combined with price fluctuations made tara procurement a speculative business. Importers place very irregular orders, to profit most from low prices. The unreliable prices have resulted in the abandonement of the market by various traders. Consequently, end-users have more difficulty in sourcing tara powder and tend to switch to alternative products. Industry sources have indicated that € 1.40 is the absolute price maximum for importers. Tanneries will switch to other tannins when prices exceed the € 1.40 price level. The substitution of tara, coupled with decreased demand, due to the financial crisis, has led to sharp price decreases in the past year.

Tara gum The price structure of natural gums, resins and waxes is complex. In many cases, the products first go to an intermediary. Depending on the value addition by the intermediary, the price of the product can increase from a few percent to a few hundred percent. The mark-up will be minimal when the intermediary limits activities to only executing the administrative work associated with purchasing and selling items. The mark-up will be much higher when the intermediary actively sources by visiting suppliers, arranges transport including documentation, stores products and advises clients on the application of the products. The intermediary often sells the product to a processor. The mark-up of the processor also depends on the kind of processing. The (re)cleaning of natural gums does not have to be very costly, but when the processor develops new blends of gums with applications in complex food formulations, value addition will be much higher. The price for high-quality refined gum Arabic is 8-10 times higher than that for the crude exudate. Exporters can maximize the value of their products through integrated systematic selection, cultivation, tapping and processing. Processing may include cleaning, sorting, grading, filtering, pasteurizing and spray-drying. The products will often be further processed in the EU. Organic versions of hydrocolloids command a price premium of 30% to 40%, according to Dennis Seisun of IMR International (2008). Global trade in tara gum has increased significantly in the last 3 decades. Due to undersupply of tara and high prices for locust bean gum, prices increased particularly fast between 2005 and 2008. In France, the price of one kilo of Tara gum increased from € 5 to € 8. Other sources indicate that end-user prices of most hydrocolloids increased in 2005 and 2006 due to rising energy, raw (processing) material, transport and environmental


compliance costs. Increased demand from China also contributed to price increases. Most price increases, as announced by leading food manufacturers, were in the range of 5 to 10% for their processed hydrocolloids (xanthan gum, carrageenan, pectin). Prices for other hydrocolloids, such as natural gums are expected to follow, although at a slower rate. An exception is Tara gum for which prices increased by approximately 50% in 2007. The sharp increase in prices until 2008 made Tara gum a lot less competitive. A generally accepted price level is less than half the current price of € 7.5 /kg FOB. As a consequence, end-users are considering tara gum substitution. The most suitable substitutes are locust bean gum (LBG) and guar gum. Importers indicate that the price of tara gum has to fall between the prices of these two gums to be an attractive product. Currently, the € 7.5 per kg price level approaches the price level of locust bean gum (approximately € 11 /kg), while guar gum costs only € 0.63 /kg. Consequently, substitution by LBG or guar is tempting. It is of major importance for the trade in Tara gum that supplies increase and prices stabilise.

Price-setting Tara products have to compete in established markets where margins are generally low. Prices are based on actual costs of business operators (e.g. producers or processors). This kind of price-setting is called cost-based or cost-plus pricing. Many suppliers compare their prices with the prices of competitors and adjust their prices to improve their price performance ratio (competitive pricing). However, one should bear in mind that competitive pricing requires extensive knowledge of the products and services of competitors, as there are many value addition activities (see Paragraph 4.2), which influence prices. Tara gum exporters are also advised to follow the developments in price levels of LBG and guar (http://www.commodityonline.com/FuturesWatch/future-spotrates.php?selcmdty=4908). Price levels of these competitive products also influence demand and, subsequently, prices for tara gum.

6.2 Sources of price information • Promperú • IMR International • Online market places


7 MARKETING STRATEGIES AND SALES PROMOTION

7.1 Marketing strategies and Sales Promotion

Tara gum This survey identified various opportunities and threats for the export of tara gum from Peru to the EU. However, before dealing with these opportunities and threats, exporters have to comply with the following critical requirements for exporting tara gum to the EU: General � Traceability documentation (certificate of origin) � ISO certification � GMP/GACP certification Food industry: � Certificate of analysis � HACCP certification � Technical data sheet Compliance with the above mentioned requirements gives the exporter a very positive lead in entering the European market. However, the exporter will need to compete with other suppliers and substitutes of the respective product. Exporters should keep in mind that tara gum is a fairly expensive thickener and therefore has to distinguish itself from other thickening agents, notably LBG and guar. When highlighting the properties of tara, one can focus on the natural origin, its viscosifying strength at low concentrations, the high resistance to high-shear breakdown, the synergistic effects when used with other thickeners, its low calorie content and the possibilities for fat replacement. Tara gum has to compete principally with LBG and to a lesser extent also with guar gum. Suppliers of tara gum could therefore profit from low supplies of LBG in recent years. However, EU importers still have a preference for European LBG. Substitution of LBG by tara gum is thus not always permanent. Suppliers of tara gum should convince importers of the reliability of tara gum supplies to make substitution of LBG by tara gum more sustainable. Reliability of supplies concerns quantities, qualities and prices. Quantities available for export should be stable. This will imply that production should be planned and controlled as much as possible. It could also imply that buffers are kept. The quality should be consistent. Differences in quality aspects, such as viscosity and mesh size for tara gum powder, should be minimal between batches. This can be realised by grading the raw material and separating processing of different grades. Certifications such as ISO and HACCP serve to prove the reliability of a supplier regarding quantities and quality. Price fluctuations should be kept to a minimum. Price increases are accepted as long as they are based on cost price calculations. When approaching a buyer who is new to the tara market, it is of the utmost importance that the exporter has good product documentation (technical data sheets). Based on this product information, an importer should be able to assess the features of the product and to easily compare it with substitutes. Documentation is also of major importance when approaching existing buyers. Existing importers are hesitant to switch to new suppliers, as the assessment for the approval is a time-consuming process. Suppliers could greatly reduce the


efforts needed by importers, by providing proper documentation. Information such as product specifications (e.g. technical data sheet), certifications (certificate of analysis, certificate of origin, GMO-free certificate, health certificate, HACCP certification, ISO certification), company history (e.g. track record) should be readily available. The documents should be easily recognizable and filed in a logical order. An example of a technical data sheet can be found here: http://www.exportselva.com.pe/goma_en.html. Note, however, that this particular data sheet is very short and lacks information about subjects such as packaging, the relation with LBG and guar, solubilty, pH value, shelf life, etc. Value addition is possible by meeting the requirements of the buyers. Value addition by further processing of tara gum is limited. Gum blends are mostly tailored to the individual needs of end-users. Providing such services to end-users requires a local representative with access to all required gums (incl. gums other than tara). Value addition by applying tara gum in food products or cosmetics is similar to supplying tara to local end-users in Peru. Marketing tara gum to the Peruvian (export oriented) food industry could, however, also be an option to sell tara gum. When dealing with European importers, English is the most frequently used language. Although most European trade partners will not be native speakers themselves, the vast majority speaks English fluently. In almost all cases, foreign language skills are essential when entering the European market. Besides, all documentation (company profiles, technical data sheets and so on) should be made available in English. Also a website available in English (including photos of production sites and produce) can be useful for promoting new contacts and sales. Increasing your competitive edge: � Highlighting unique characteristics � Extra product documentation and information (GMO-free certificate, health certificate) � Stability of supplies and short delivery times � Quality (consistency) � Language and communication � Organic certification (please refer to Section 7.2)

Tara powder Critical requirements for supplying the selected markets: (For information on these issues, please refer to Chapter 5) General � ISO certification � GMP/GACP certification Leather industry: � Technical data sheet (containing product specification (see Table 1.4), product characteristics (description of production process and applications) and application (explanation of advantages). A good example is provided by Chimont Group (http://www.chimontgroup.com/admin/indexlista.php?IDcat=12&lingua=EN). Marketing efforts need to focus on restoring confidence of importers. Prices have to become more stable and delivery times have to become shorter. For a sustainable trade in tara, profit-making has to be based on long-term business relationships instead of short-term selling to the highest bidder. Contract-farming offers a safe solution for both suppliers and buyers. Note, however, that not all buyers are willing to make long-term commitments.


The price fluctuations of the past years are strongly related to the availability of tara on the global market. Stocking tara can be an effective tool to stabilise prices. Stocking has to start at minimum price levels of around € 0.70 per kg FOB Callao, while stocks must be sold at maximum price levels of around € 1.40. Vegetable tannins are niche products (compared to chrome salts) and should be marketed as such. The main advantage of vegetable tannins is that they are more environment friendly. With increasingly strict EU legislation regarding waste and waste water treatment, vegetable tannins offer specifically interesting solutions for tanneries aiming to reduce their pollution. With the EU leather industry under pressure from environmental legislation and competition, the industry has to lower margins. Due to the relatively low labour costs in Eastern Europe, some of the leather tanning is moving to Eastern Europe. Consequently, it could be interesting to target Eastern Europe, next to the traditional markets of Italy, Spain, Germany, France and the UK. As the EU member countries in Eastern Europe (e.g. Bulgaria) also have to comply with EU legislation, advantages of vegetable tannins regarding their impact on the environment apply there as well. Language and communication are also important in the trade of tara powder. Increasing your competitive edge: � Highlighting unique characteristics � Stability of supplies and short delivery times � Quality (consistency) � Language and communication

Tara medicines Tara has a long way to go before it can be used as a medicine in the EU. More research is required to provide scientific evidence for the medicinal properties of tara. Furthermore, a monograph needs to be elaborated to acquire market authorisation.

7.2 Importance of private label initiatives (organi c, fair trade etc.) as a marketing tool The organic label is mostly used in the food industry. Many EU consumers perceive organic food as safer and more healthy food than food produced under conventional conditions. Demand for organic ingredients by the cosmetics industry is increasing, but small in absolute size. Consequently, exporters with interest in organic production should have more opportunities in the food industry. Moreover, trade channels for tara gum are mostly the same for the food industry and the cosmetics industry. Both industries are supplied by the same specialised importers/traders. Price premiums for organic hydrocolloids could be up to 30-40% according to IMR International. However, actual price offers at online market places show that premiums for organic tara gum are around 5%. Products with fair trade labels are gaining popularity. However, the labels are put on consumer products. Fair trade certification is not very interesting to buyers of tara-based products as they are used in low concentrations as ingredients in food products or for the processing of other products. The end-products cannot be labeled as fair trade, except for food products which also comprise other fair trade ingredients. Nevertheless, certification of social accountability (e.g. SA 8000) is appreciated by buyers.


7.3 Concrete B2B opportunities Various companies have shown interest in tara based products. These companies are listed under Paragraph 7.4. The companies are most interested in receiving product offers. However, companies which are dedicated to improving their position in the tara market are also interested in collaborating with suppliers to improve the product offers. Kalys (www.kalys.com) is a French importer of gums with extensive knowledge about the application of gums in the food industry. Kalys imports between 50 and 100 tonnes of tara gum annually. Price stabilisation, quality consistency and proper documentation are important to Kalys. Kalys is willing to invest time in a trade relationship with tara suppliers. Contact person: Yannick Hus Tel. +33 (0)4 76 52 95 00 e-mail: [email protected] Haan Special Ingredients (http://www.haanspecialingredients.nl/) in The Netherlands does not trade tara at the moment. Natural gums account for a very small part of their turnover. They are more interested in alginates and carrageenan. Nevertheless, they are interested in receiving product offers. Contact person: Toni Haan Tel. +31 (0)182 38 39 33 e-mail:

[email protected] A2 Trading (http://www.a2-trading.com/) is a major importer of gums in Germany. A2 Trading has extensive knowledge about the market for gums, including tara, and about the applications. Contact person: Mr. Jeremias Mueller

Tel. +49 40 52 38 87 20 e-mail: [email protected]

CE Roeper (http://www.roeper.de) is another major importer of gums in Germany. CE Roeper was very active in the trade in tara gum when prices of LBG were high. However, prices of LBG already went down 2 years ago and CE Roeper has returned to LBG. CE Roeper is mainly interested in product offers for tara if it is price competitive with LBG. Contact person: Jennifer Lohmann

Tel. + 49 40 73 41 03 28 e-mail: [email protected]

Christian D. Markmann (http://www.cdm-tannin.de/) is a german trader of vegetable tannins. Markmann was a major trader of tara powder for the leather industry, but stepped out of the market. Price fluctuations and long delivery times were major problems for Markmann. Contact person: Mr. Markmann

Tel. + 49 (0)40 550 44 75 e-mail: [email protected]

Chemipol (http://www.chemipol.eu/) is an importer of materials for leather production. Chemipol is currently stuck with 7 tonnes of tara powder, as they lost their only buyer of tara. Contact person: n.a. Tel. +48 42 253 00 90 e-mail:

[email protected] Rompa Leather (http://www.rompaleather.com) is a Dutch tannery. Rompa leather already has a ‘gentlemen’s agreement’ with a European distributor for tara powder. Rompa Leather is not interested in purchasing full containers and requires short delivery times. Contact person: Mr. Eskens Tel. + 31 (0)16 122 30 25 e-mail:

[email protected] Figli di Guido Lapi (http://www.fgl.it) is an Italian trader of materials for leather production. Contact person: Mr. Pinori Tel. + 39 (0) 571 47591 e-mail: [email protected]


Biokimica Group (http://www.gruppobiokimica.com) is an Italian importer of materials for leather production. Already purchases tara from Peruvian exporters. Contact person: Mrs. Marina Tel. +39 0571 36 31 e-mail:

[email protected] Silvateam (http://www.silvateam.com) is a leading Italian importer of materials for leather production. Has own production of tara in Peru, but also purchases from other suppliers. Contact person: Mr. Poles Tel. +39 0174 220283 e-mail:

[email protected] Branwell (http://www.branwell.com) is a UK importer of hydrocolloids, including gums. Contact person: Mr. Richard Kenny

Tel. + 44(0)1992 577333 e-mail: [email protected]

Provisco (http://www.provisco.ch) is a Swiss trader of hydrocolloids (including gums) and stabilising systems. Provisco is interested in tara gum, when the price is between the price of guar and locust bean gum. Mostly use tara gum in their compounds, which are tailored to the application of the customer. Contact person: Mr. Domeisen

Tel. +41 71 422 66 55 e-mail: [email protected]

Larbus (http://www.larbus.com) is a Spanish trader of additives for the dairy, meat and fruit juice sectors. Larbus is not yet trading tara gum, but is expanding its activities and might consider to import tara gum after a survey of the market. Contact person: N.a. Tel. +34 91 408 30 68 e-mail: [email protected] Brenntag (http://www.brenntag.es) is a Spanish trader of chemicals for different sectors. Brenntag is not yet trading tara gum. Contact person: Mr. Rodriguez

Tel. +34 954 91 94 00 e-mail: [email protected]

Productos Giro (http://www.productosgiro.com/) is a Spanish trader of gums for the food and pharmaceutical industries. Contact person: Mr. Ferre Tel. +34 618286518 e-mail: n.a.

7.4 Companies interested in Tara based products • Kalys: Interested in tara gum. Available for information on market requirements. • Haan Special Ingredients: Interested in product offers. Does not experience any

increases in demand for tara gum. • A2 Trading: Interested in tara gum offers. • CE Roeper: Has had bad experiences with stability of tara gum supplies from Peru and is

therefore only importing from EU. Peruvian companies will have to prove that they can provide stable supplies of tara.

• Christian D. Markmann: Interested in tara powder. Only trading one container (18-20 tonnes) per year, compared to 20 containers before. Price sensitive.

• Chemipol: Interested in tara powder offers. Currently no customers with regular tara powder needs.

• Rompa Leather: Interested in tara powder offers. Requires small quantities (1-2 tonnes) at regular intervals with a delivery time of only a few days.

• Figli di Guido Lapi: Interested in tara powder offers.


• Biokimica Group: Interested in tara powder offers. Purchases full containers directly from suppliers in Peru.

• Silvateam: Interested in tara powder offers. • Branwell: Interested in tara gum offers. Currently does not import tara. • Provisco: Interested in tara gum offers. Requires regular market information, including

price, quantities, grades, certifications, Incoterms (FOB or CIF). • Larbus: Interested in tara gum offers. Not yet trading tara gum, but has received several

requests from customers. Might start trading tara in future. • Brenntag: Interested in tara gum offers. • Productos Giro: Interested in tara gum offers. • GFN Selco: Product developer Dr. Karen Mörs expressed interest in tara seeds and tara

gum for testing (www.gfn-selco.de). • Ziegler GmbH: This company has already a suppliers of organic tara (tannin) but sales

quantities are small at the moment (www.zieglerco.de). • Other companies with a light interest in tara powder (tannin) are

www.schomisch.de/us/1_ecopell.htm and www.carranza-asociados.co as well as in tara gum (www.wild.de).

• 7.5 List of companies contacted that showed no interest in importing Tara based products • Singelmann: Not interested in tara gum. Already too busy with other gums. • Alland & Robert: Not interested in tara gum. Focus on just two gums (Arabic and karaya). • Alfred L. Wolff: Not interested in tara gum. Sold most of the gum business to A2 trading. • Kerry PLC: Not interested in tara gum. Only use little amounts of tara gum. Not worth

investing time in new suppliers. • Caldic: Not interested in tara gum. Only purchase small amounts (1 tonne annually) from

Kreglinger. Not interested in direct imports and more confidence in LBG and guar. • Töpfer: Not interested in tara gum. Applications of töpfer (creams and lotions) require a

different gum (xanthan). • Conceria Sice S.p.a.: Not interested in tara powder. Only use other tannins. • PPS Tannery Europe: Not interested in tara powder. Not interested in new suppliers. • Bradley’s: Not interested in tara powder. Purchase processed (chrome-tanned) skins. • Otto Dille: Not interested in tara powder. Lost confidence in suppliers after sharp price

increases. • Macchi & Salvadori: Not interested in tara powder. Requires small quantities. Purchases

from Silvateam. • SCRD: Not interested in tara powder. Already has a good trade relationship with current

supplier. • Argolanda: Not interested in tara powder. Does not have a stable customer base for tara.

Purchased once from a trader in Germany. • Chemipal: Not interested in tara powder. Do not have tara powder in their product range. • Biodermol: Not interested in tara powder. Do not use tara powder in their products.


8 ANNEXES

8.1 Standards organisations • ISO: http://www.iso.org/iso/home.htm • ILO: http://www.ilo.org • SA8000: http://www.sa8000.org • GMP and GACP: http://www.who.int • IMO: http://www.imo.org

8.2 Sources of price information • Prompex • IMR International • Online market places

8.3 Trade associations • AIPG - http://www.treegums.org – Association for International Promotion of Gums

8.4 Trade fair organisers The most interesting trade fairs for tara gum are: • BioFach (certified organic products): http://www.biofach.de, the next fair will be held in

February 2010. • HI Europe (food ingredients): http://www.fi-events.com, the next fair will be held in Madrid

16-18 November 2010. • SIAL (food and beverages): http://www.sial.fr, the next fair will be held in 2010.

8.5 Trade press An interesting place to learn about applications of hydrocolloids and possibly promote your products could be one of the two conferences on hydrocolloids: • Food Hydrocolloid Conference - http://www.hydrocolloid.com/ - Conference organized

annually by IMR International. The next conference will be held in January 2010 in Berlin. • International Hydrocolloid Conference - http://www.9ihc.org/ - Conference on theoretical

an applied aspects of hydrocolloids structure and interactions with natural food ingredients and pharmaceuticals. The last conference was held in June 2008.

8.6 Other useful adresses • Gum Technology Corporation - http://www.gumtech.com – The website of Gum

Technology Corporation from the USA offers a good introduction to gums.