Starch demand returns to regular levels due to slow but steady global economic recovery. On the supply side however starch crops face severe problems such as heat, drought and flooding in Russia and Europe resulting in reduced harvests for both wheat and potatoes. In South-East Asia cassava crop suffers the mealy bug resulting in 30% lower tapioca harvest. Also in Africa and South America cassava crops seem to be affected by viruses.
Early 2010 carry over stocks at European potato starch producers disappeared completely and delayed harvest creates further shortages. Latest estimates predict 20-25 % lower potato starch harvest for 2010. Although Emsland Group will do the utmost to deliver key customers we expect shortages of potato starch in the EU.