WHEAT FOCUS: Speciality focus pays off for wheat ingredients supplier

Related tags Wheat

Speciality ingredients continue to deliver improved results for
wheat-based ingredients supplier MGP Ingredients with the company
this week raising its estimated revenue for the year on the back of
higher than expected sales.

At a time when raw material prices - particularly for wheat - continue to squeeze margins, sales of speciality ingredients - primarily wheat proteins and wheat starches - at the US-based firm are neatly counteracting a decline in sales of commodity ingredients, such as wheat gluten and commodity wheat starch.

Yesterday the company told the market that on the back of strong demand for its speciality wheat ingredients, earnings for the year would be higher than previously estimated. The news sent its shares on NASDAQ up nearly 12 per cent.

Growth is underway for the manufacturer of wheat based ingredients with the company confirming yesterday that its board had cleared nearly $1million ($900,000) in spending to boost speciality wheat starch production capacity at its Atchison, Kansas plant.

The spending is part of a wider $2 million plan to boost wheat starch and wheat protein production, first announced in December.

Last year the company expanded this plant for the production of speciality wheat proteins for bakery, pasta and noodle markets.

"Our growth strategy is focused on building our speciality products by concentrating our manufacturing, research and development, and marketing activities on this area,"​ said Ladd Seaberg, CEO of MGP Ingredients. "Since adopting this strategy in recent years, our efforts have resulted in steady progress which has now begun to move at a more accelerated and profitable pace."

In November the company reported a 33 per cent rise in sales for the first quarter of fiscal 2004 to reach $57 million, up from $42 million for the same period a year ago.

Related topics Markets Ingredients

Related news

Show more

Related products

show more

Dairy proteins now available from Univar Solutions

Dairy proteins now available from Univar Solutions

Content provided by Univar Solutions | 20-Sep-2023 | White Paper

Foodology by Univar Solutions proudly partners with Leprino Nutrition as their North American distributor of nutritional ingredients and dairy products.

Clean Label Ingredients for Shelf-Life Extension

Clean Label Ingredients for Shelf-Life Extension

Content provided by Lesaffre | 19-Sep-2023 | White Paper

Product waste skyrockets without anti-staling agents and mold inhibitors. But consumers are scrutinizing labels more than ever before. How can you have...

Sustainability Claims Impact on Consumer Purchases

Sustainability Claims Impact on Consumer Purchases

Content provided by ADM | 07-Sep-2023 | Insight Guide

Discover what consumers say about sustainability claims versus what they do in the grocery aisle. Find out in this can’t-miss proprietary study from ADM:...

Cost-effective & efficient: Angel Prebake Solution

Cost-effective & efficient: Angel Prebake Solution

Content provided by Angel Yeast – Yeast and Baking Ingredients | 31-Jul-2023 | White Paper

After years of systematic research and practical application in the production process and essential ingredients for frozen dough, Angel's pre-bake...

Related suppliers

Follow us


View more