KMC expectations of the potato starch market for 2012

Chief Commercial Officer Bjarne Larsen of Potato Starch manufacturer KMC gives his expectations for the 2012 potato starch market.

The 2011/2012 potato starch production year started with totally empty carry-over stocks due to the poor harvest last year. Entering into 2012 we are now well into the starch production campaign and our harvest seem to be on a normal level. We do not expect a dramatic under-supply situation during the next few months;however the industry has a need to re-establish at least a minimum carry-over stock before next year’s harvest.

In spite of current relatively low economic activity in many countries around the World, global demand for raw materials are continuing on a high level, which is true also for potato starch.

Consequently, demand and supply is expected to balance in the first half of 2012 and no major changes to the current market situation are foreseen at this time.