The global demand for plant-based protein is growing significantly and is forecasted to increase by 7 percent to 10 percent per year globally, supported by customer demand for healthier nutrition, sustainable farming allergen free and farm-to-fork traceability. As this put pressure on the global supply chain, Belgium-based Cocucra has announced that the company is increasing its price for pea protein.
Commercial Director, Eric Bosly dismissed suggestions that the decision was related to the European drought. “The drought of this summer has no impact on the pea availability for Cosucra. The volume of raw material is secured by contract with a supplier from several European countries. Despite a disappointing yield in the 2018 yellow pea harvest in France, the European production is more than sufficient to supply the ingredient industry. Indeed the pea usage for pea protein isolate production, although requesting the highest quality, is still a minor part of the overall pea consumption. The major part remains for the use of animal nutrition.”
Bosly would not confirm the specific price increases that customers could expect, but admitted that it was a “substantial value.”
Cosucra’s ability to anticipate consumer trends has led to investments over the last five years that amount to a total of €35 million, including a recent expansion in the US. The company is targeting the plant-based foods market with its range of pea protein ingredients.
According to Cosucra, the pea processing business is a challenging one where a profitable business model depends not only on the success of pea protein but also on the commercialization of the starch/fiber fraction naturally present in the pea. Indeed, during the processing of yellow peas, used for Pisane, Cosucra produces specific quantities of pea protein, of pea fiber and approximately double quantities of pea starches.
For those pea co-products, despite an exciting evolution, Cosucra does not observe a similar growth as in the pea protein sector. This imbalance has led to a decreasing revenue by a ton of processed pea that does not cover capital requirements to support our customers’ ever-increasing global consumption for pea protein, according to the company.
The pea protein market is undoubtedly experiencing growth, with strong opportunities for innovation. Earlier this week, Roquette and Equinom, an innovative Israeli-based breeding technology company, signed a partnership agreement for the development and sourcing of new pea varieties with high-protein content. In addition to this new collaboration, Roquette and Equinom’s current shareholder Fortissimo Capital will jointly invest US$4 million in the company to support its further development.
