USA— Cargill has announced plans to invest more than US$50 million to build a new, cutting-edge, corn syrup refinery in Fort Dodge, Iowa, significantly expanding the company’s ability to meet growing demand for corn syrup and in a more sustainable way.

Corn syrup is produced by hydrolyzing the cornstarch either by heating the cornstarch with diluted acid or by adding enzymes to the cornstarch. Corn syrup is extensively used in the production of jams & jellies, baked food, and various other foods such as dairy products, confectioneries, and beverages.

The demand for corn syrup is expected to grow significantly in the food & beverages industry, owing to increase in demand for sweeteners in different processed foods.

According to a report by Allied Market Research, the global Corn Syrup industry generated US$9.8 billion in 2021, and is anticipated to generate US$13.5 billion by 2031, witnessing a CAGR of 3.2% from 2022 to 2031.

This growth is further catalyzed by an exponential increase in global population, rise in disposable income, rapid urbanization, changes in food habits, and surge in demand for packaged food.

The combination of an electrical grid made up of more than 88% renewable sources, and the new corn syrup production process will reduce CO2 emissions by nearly 50% compared to typical production methods

“Adding this new corn syrup refinery further fortifies our supply network and ensures customers can continue counting on Cargill to be a reliable source of this sought-after ingredient.” said Mike Wagner, managing director of Cargill’s starches, sweeteners and texturizers business in North America.

The new refinery, which is expected to be operational by mid-2024, will utilize technology and processes to reduce Scope 1 and Scope 2 emissions, the company said. Cargill’s Fort Dodge facility is powered by the MidAmerican Energy electrical grid, which is made up of more than 88% renewable sources.

The combination of this electrical grid with the new corn syrup production process will reduce CO2 emissions by nearly 50% compared to typical production methods, according to the company.

“This new refinery is the latest example of how Cargill is working to lower our environmental impact across operations using advanced technology to minimize our carbon footprint,” said Sydney Pokorny, facility manager at the Cargill Fort Dodge biotechnology campus.

However, as increased prevalence of diabetes and other diseases due to growing consumption of sweeteners and rise in health consciousness among consumers is expected to restrict the market growth of corn syrup market, Cargill has also invested in healthier sweetener alternatives.

Recently the company invested US$2.4 million to upgrade its sweetener plant in Indonesia, more than doubling the company’s production capacity for organic non-GMO tapioca syrup which is contains fewer calories and carbs as compared to sugar.

Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE