Trends
Since most gums are naturally derived from sources such as tree exudates, seeds, and seaweed, they are subject to planting, harvesting or gathering before processing.
Like most other natural ingredients, the market price of gums is determined by conditions that affect planting, harvesting and processing. Weather, cost of labor, and the vagaries of politics, often determine the availability and cost of the finished ingredient. The cost of oil also is a factor, as it is in all aspects of the food processing industry.
In order to reduce the impact of any or all of the possible variables which might move pricing to the higher side, Gum Technology encourages contract purchasing.
Our technology has always enabled us to develop stabilizing systems which are functionally compatible with many of the commodity type gums. These replacements, which might combine two or more gums, have been
effective in aiding us to help our valued customers through difficult pricing and availability cycles. Many of these replacement systems result in significant savings, in some cases up to 50%, vs. a commodity type gum.
For example, when Gum Tragacanth pricing started moving drastically upward and good quality material with low micro levels became difficult to find, Coyote Brand Stabilizer XAC-0810 was specifically developed to replace Gum Tragacanth in some applications.
Our practice of partnering with our growers and manufacturers, our technology and our business philosophy are key elements in protecting against difficult markets. Ultimately, these business practices are in place for Gum Technology to partner with you our customers.
