• Condensed by Lynda Kiernan

Traders Turn to Organic, Gluten Free Markets for Profit

After multiple years of global bumper grain crops, supplies are so high that there is no money to be made in trading wheat, corn, or soybeans.

Traders are now turning toward niche markets such as organic grains, or gluten-free ingredients in their hunt for returns, as the gluten-free market is growing at about 10 percent per year with global sales expected to reach $7 billion by 2020, according to a presentation by Cagnolati at the recent Black Sea Grain conference held in Kiev.

And while this tactic may not have much of a difference to the bottom lines of some of the largest global traders, small and mid-sized traders are benefiting from capitalizing upon health-conscious consumers’ willingness to spend more for organic, gluten-free products or alternatives like quinoa, rice, amaranth, or lentils.

Bloomberg reports that a better course of action for the largest global traders would be to expand into processed, value-added commodities – something that Bunge is pursuing as it finalizes its new plant in the U.S. to produce soymeal and soybean oil. Cargill is expanding its animal nutrition business, while France’s top grain coop, Axereal, is turning to barley due to a growing demand for beer.

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Lynda Kiernan is Editor with HighQuest Group Media and of the Oilseed & Grain News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@highquestgroup.com.

©2017 HighQuest Group. All rights reserved.

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