The year seems to have got off to a really busy start. We are continuing to grow with intrinsic growth of existing products, new products from existing customers and new enquiries. The main challenge for us is getting sufficient ingredients to meet our customers’ demands and this is slowing New Product Development as we are refusing to take on new projects if we cannot secure enough ingredients to meet future foreseeable demand.
The enigma is whey protein which is the least of our supply problems but the price keeps going up. The price is expected to fall going forward but it was not expected to get this high either. It seems a great deal is being used in China in infant formula and if this continues we can expect supply to become shorter. I think the industry need to recognise that there are some good vegetable proteins which work as well as whey at a much lower cost and higher health benefits. Time will tell.
The Earthquake in Japan has affected Amino Acid supplies. Cocoa has also been scarce. I seem to spend a lot of my time buying forward these days to get the contracts in place.
Most R&D is now done in house – we built a small lab at Christmas. This is more for time saving as the run to the lab was a 2 day job before.
Demand from new start-ups is increasing but we are having to conclude we are not always best placed to deal with these. We make bespoke product with bespoke flavours and deliver in 3 days from order. To make this worthwhile we really need weekly demand and are selecting new projects which are likely to grow to reasonable volumes so they will benefit from our service.
Work on our ISO Quality Management System is largely completed and we are just waiting for the auditors. This has been a major investment for us although all the systems were in place – we can now prove the systems are in place too.
We are also pursuing technical innovations going forward to continue to support our customers in this rapidly changing market.