Cargill poised to become "major supplier" of supplement ingredients, firm predicts.
This article was originally published in The Tan Sheet
Executive Summary
CARGILL POISED TO BECOME "MAJOR SUPPLIER" OF SUPPLEMENT INGREDIENTS, Nutraceuticals Business Development Manager Cynthia Leaf declared at the second Adams, Harkness & Hill Healthy Living Conference in New York City March 18. Leaf, who heads the nutraceuticals division formed in mid-1997, outlined the agricultural products giant's plan to "become a major supplier of natural health-promoting ingredients" to the dietary supplement industry. In addition, she hinted Cargill eventually will consider "moving up the value chain" and manufacture its own finished supplements.
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CARGILL POISED TO BECOME "MAJOR SUPPLIER" OF SUPPLEMENT INGREDIENTS, Nutraceuticals Business Development Manager Cynthia Leaf declared at the second Adams, Harkness & Hill Healthy Living Conference in New York City March 18. Leaf, who heads the nutraceuticals division formed in mid-1997, outlined the agricultural products giant's plan to "become a major supplier of natural health-promoting ingredients" to the dietary supplement industry. In addition, she hinted Cargill eventually will consider "moving up the value chain" and manufacture its own finished supplements. Minneapolis-based Cargill buys and trades grains, oilseed, and other agricultural commodities in North and South America, Europe, Africa, Asia and the Pacific Rim. The company is privately held. Cargill produces large amounts of potentially valuable byproducts it has been "almost giving away for years," Leaf said. In addition, the company has separation technology and fermentation expertise that make it well suited to being an ingredient supplier for the industry. The nutraceuticals division is "responsible for converting raw materials, products and co-products into ingredients designed to enhance both human and animal health." Raw materials to be sourced will come primarily from the company's oilseed processing, corn wet milling, flour and rice milling, juice, cocoa and meat processing divisions, Cargill predicted. The company has developed proprietary technology for removing pesticides from these materials to make them suitable for use in supplements, Leaf said. The first ingredient Cargill is focusing on is natural source vitamin E. The company has had a joint venture with Hoffmann-La Roche since June 1994 to manufacture natural source vitamin E at a dedicated Cargill manufacturing plant in Eddyville, Iowa, which began construction in September 1995. The Cargill Nutri-Products plant will be fully operational within the next several months, Leaf said. Vitamin E was chosen as the initial target because of serious shortages of the vitamin resulting from greatly increased consumer demand. The Cargill vitamin E will be derived largely from soybean byproducts. Phytosterols used for cholesterol blocking also are found in soybean byproducts and will be produced in the same plant, Leaf noted. Other ingredients Cargill eventually hopes to supply to the dietary supplement industry include SDG derived from flax for cancer prevention, as well cow and pig cartilage for use in arthritis supplements. Cargill also hopes to capitalize on the antioxidant properties of byproducts created during fruit juice production. Numerous additional ingredients likely will follow, Leaf predicted. |