Kerry expands organic ingredients in US

By Lorraine Heller

- Last updated on GMT

Related tags Organic ingredients Organic food

Irish firm Kerry Ingredients has responded to the growth of
organics in the United States by expanding its organic ingredient
product range across the board, the firm announced yesterday.

The group said the move will affect its flavors, cereal, cheese & dairy, lipids, proteins, seasonings and sweet ingredients.

This is designed to "provide food and beverage manufacturers the support and expertise needed to succeed in the growing natural and organics marketplace,"​ said Kerry Ingredients.

Kerry's organic expansion will provide ingredients for applications including: beverages, soups and sauces, meat products, infant formulas and snacks, such as crackers, tortilla chips and pretzels.

The firm's range of organic cereal ingredients include clusters, coatings, granola and extrusion products, such as nuggets, crisps and cookies. Kerry's sweet ingredients include drops and ice cream inclusions, while its range of savory ingredients include marinades and seasonings.

Cheese and dairy ingredients available include butter, cheese, cream and yogurt powders. The company also provides a range of soy ingredients, lipids and 'mastertaste' products, such as flavors and essential oils.

The expansion comes at a time when food and beverage manufacturers are facing growing difficulties in securing supplies of organic ingredients, with a surge in consumer demand for organic and natural products continuing to outstrip supply.

According to a recent report published by organic watchdog Organic Monitor, undersupply of organic ingredients is undermining the long-term stability of the sector.

The Global Market for Organic Food & Drink​estimates that 2006 revenues approached $40bn as consumers increasingly seek the healthy and nutritious option. But the rising demand is outstripping supply, despite reported triple-digit growth in organic farmland in Latin America, Asia and Africa since 2000.

"Over-concentration of demand could put the global organic food industry in a fragile condition,"​ said Amarjit Sahota, director of Organic Monitor.

The shortages are most evident in North America, and, according to Organic Monitor, many US-based companies are currently scouring the globe for organic ingredients.

According to the consultancy, organic ingredients like nuts, beans, and seeds are increasingly being imported from Turkey, China, and Brazil, herbs and spices are coming from Paraguay, India, and Ethiopia, and organic fresh fruit and vegetables are increasingly coming in from African and Asian countries.

According to the US the Organic Trade Association, The overall food organic market has grown 28 percent since 2003 to reach a total value of $14bn in 2005, and is expected to reach $16bn by the end of 2006.

Kerry's investment in the organic marketplace began in 2000 with the launch of Nutriant, a line of 100 percent natural, non-GMO, expeller-pressed soy flours, grits and oil.

The company continued to expand its capabilities in 2003 with theacquisition of Pacific Seasonings. And Kerry Group's Mastertaste division also developed a collection of organic and organic-compatible flavors, as well as freeze-dried powders, essential oils and oleoresins.

Kerry currently has certified organic production lines in 18 facilities.

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