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BASF has agreed to sell its food and health performance ingredients business to Louis Dreyfus Company (LDC). The binding agreement, signed in December, includes a production site and state-of-the-art R&D centre in Illertissen, Germany, plus three application labs outside of Germany.LDC, a leaferrous fumarate easy on stomachding processor of agricultural goods and involved from farm to fork across commodities including coffee, grains and oilseeds, juice, rice and sugar, said the agreement is an opportunity to accelerate its involvement in the plant-based ingredients market.“We are excited about the prospect of this transaction, as LDC’s first investment in dedicated facilities to produce food and health performance ingredients at scale,” said Michael Gelchie, LDC chief executive officer. The move is “in line with our strategic plans for revenue diversification through more value-added products and growth in downstream markets”, he added. BASF’s food and health performance ingredients diferrous fumarate 210mg tablets buyvision manufactures plant-based ingredients and emulsifiers for food formulators. This includes food performance ingredients such as aeration and whipping agents, food emulsifiers and fat powder grades; health ingredients such as plant sterols esters, conjugated linoleic acid (CLA), omega-3 oils for human nutrition and some smaller product lines.LDC, which is headquartered in The Netherlands, said it would leverage its existing strengths in oils and fats, glycerin and lecithin, as well as its global supply chains, to “reinforce its global position in nutritional and functional ingredients”.It is no secret that the plant-based market has been struggling for sales. However, the picture is far more nuanced than the ‘crisis’ headlines suggest. Plant-based meat alternatives certainly have some challenges in certain markets but plant-based ingredients remain in pretty rude health (despite actual sales data being hard to decipher).For example, the global pulses market, which includes beans, peas, chickpeas, and lentils, is experiencing notable growth as consumers increasingly seek plant-based proteins and sustainable food options. A recent RaboResearch report highlighted the potential for pulses to expand beyond their current niche status within the global grains and oilseeds sector.Market growth is largely driven by two key factors: increasing consumption of pulses as a primary protein source in emerging markets – with growing demand for mung beans in China, chickpeas in India, and a variety of pulses across Africa – and rising demand in developed countries for plant-based meat and dairy alternatives. While soy remains the most common alternative protein in many plant-based foods, pea and chickpea proteins are gaining attention. The Ra75 mg ironboResearch noted opportunities for both established players and new entrants in the pulses market. LDC’s agreement with BASF certainly shows it is one of those seeking to grab that opportunity.Indeed, in August the company launched a dedicated pulses business unit, underscoring the increasing importance of pulses in global food systems. The new unit will focus on yellow peas, chickpeas, red lentils, faba beans, and pigeon peas, targeting key importing markets such as India, China, and the Middle East. LDC chief commercial officer and head of food and feed solutions James Zhou explained how BASF’s food and health performance ingredients business is “highly complementary to [our] existing food and feed solutions platform portfolio”. He added: “[W]e see strong potential to accelerate [our] evolution from reliron gluconate pillsiable raw material provider to trusted solutions advisor as well, partnering our global customers to develop attractive applications for bakery and confectionary, non-dairy, instant foods, personal care and healthcare.”For BASF, the agreement signals its desire to focus attention on its “core businesses in nutrition and health. We remain committed to leveraging our core product platforms and expanding our business in key areas such as vitamins, carotenoids and feed enzymes,” said Michael Heinz, member of the board of executive directors and responsible for the nutrition and health division. December also brought news of a merger between dairy cooperatives FrieslandCampina and Milcobel. The intended merger will create a super-cooperative that “has dairy front and centre for member dairy farmers, employees, consumers, and customers”, the cooperatives said in a statement. The proposed merger is subject to approval by FrieslandCampina’s members’ council, Milcobel’s extraordinary meeting of shareholders, and antitrust authorities. Member dairy farmers, employees, works councils and trade unions have been inferrous lactate manufacturerformed about the merger proposal. A joint press statement noted that the merger “offers further business development opportunities in market segments such as consumer cheese, mozzarella, white dairy products (such as milk, buttermilk, and yoghurt), and ingredients, as well as benefits in efficiency and expertise, for example in the area of sustainability”.
Louis Drefyus Company powers on in plant-based with BASF ingredients acquisition
