Procurement & Supply Chain: Raw Material Analysis and Outlook

This report, prepared for a Procurement & Supply Chain Management module, provides a comprehensive analysis of the procurement and supply chains for essential raw materials including mustard flour, wheat flour, and xanthum gum. The report delves into factors critical for the procurement of these materials, examining market developments, import trends, consumer preferences, and industry dynamics. It explores the significance of these raw materials in the food and beverage, pharmaceutical, and other industries, highlighting current developments in their supply, including global market sizes, production challenges, and the impact of factors such as gluten-free trends and rising demand. The report also touches on key industry players and the strategies they employ, providing a detailed outlook on the supply chain management of these crucial ingredients. The document aims to provide insights into the current state and future prospects of these supply chains, supporting informed decision-making in the field of procurement and supply chain management.

Procurement & Supply Chain Management
Name of the Student
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Author Note

Table of Contents
Section 2:....................................................................................................................................3
2.1 Factors essentials for procurement of key raw materials:....................................................3
[a] Mustard Flour...................................................................................................................3
[b] Wheat Flour......................................................................................................................3
[c] Xanthum Gum..................................................................................................................4
2.2 Current developments in the supply of these raw materials:...............................................4
[a] Mustard Flour...................................................................................................................4
[b] Wheat Flour......................................................................................................................5
[c] Xanthum Gum..................................................................................................................6
References..................................................................................................................................8

Section 2:
2.1 Factors essentials for procurement of key raw materials:
[a] Mustard Flour
The development of the market over the globe is relied upon to delineate critical development
in the general market inferable from expanding interest for mustard seeds in cooking and as a
substitute for different oils, for example, sunflower oil and different oils in the market. The
worldwide mustard seeds showcase observes a huge development which is primarily credited
to an expansion in the utilization of mustard seeds in the nourishment and refreshment
industry, pharmaceutical industry, individual consideration, and restorative industry and
others (Gardner et al. 2019). Among all businesses, nourishment and drinks portion is the
predominant application section in the general mustard seeds showcase owing to it is across
the board use as a topping; trailed by beautifiers industry, wherein it is utilized as a
characteristic clean, hydrating specialist, age-challenging operator and helps in hair
development, along these lines contributing towards income age in the general mustard seeds
advertise (Gu et al. 2019). Following elements are fundamental for acquisition of mustard
flour:
• Increased Imports of Mustard Seeds;
• The developing purchaser enthusiasm towards various taste inclinations and dietary
patterns are expanding the fixing sauces request;
• The showcase is divided, and with the solid nearness of residential players, it is
disorderly.
[b] Wheat Flour
Wheat is gathered just once every year, in April. Right now, our system of specialists and
distribution centers causes us develop a monstrous stock of wheat. This support empowers us
to shield our clients from varieties in quality and wild changes of costs in item advertises
(Fleming et al. 2019). Simultaneously, since this wheat is put away in stockrooms oversaw by
us, we can guarantee the most sterile and clean conditions for our grain. The acquirement
specialists anticipate that the accompanying elements should assume a key job in affecting
the worldwide classification spend for the flour showcase.
• Rising request from the nourishment and drink industry

• The ascend sought after for entire wheat flour
• The interest for bread kitchen items
[c] Xanthum Gum
Thickener is a nourishment thickener produced using microscopic organisms that taint
various plants. It is a fixing in a wide assortment of nourishments, just as items, for example,
toothpaste. In spite of the fact that it might offer some medical advantages, it is utilized
essentially to change the surface of nourishment, not for a particular wellbeing need
(Daryanto et al. 2016). The variables that drive the thickener showcase development are
request from nourishment and drinks industry, without gluten nourishment items, multi-
usefulness of thickener, change in customer inclinations, and ascend in utilization of
accommodation nourishment. Nonetheless, significant expense of thickener and accessibility
of moderately modest substitutes and hostile to dumping strategies on thickener hamper the
market development during the gauge time frame. Increment sought after for oil and gas
penetrating and creation of thickener utilizing reasonable and inexhaustibly accessible crude
materials is relied upon to give a significant development opportunity sooner rather than later
(Mills et al. 2018).
2.2 Current developments in the supply of these raw materials:
[a] Mustard Flour
Mustard seed are frequently found to a great extent in nations, for example, Canada, Russia,
China and South Asian nations. The majority of the exchange for mustard flour is from
nations, for example, Canada, France, Germany, Poland, Netherlands, Belgium and the U.K.
what's more, the significant purchasers of mustard flour incorporates nations, for example,
the U.S., Spain, Japan, and Australia.
In 2017, the worldwide Mustard Flour showcase size was 1500 million US$ and is conjecture
to 2360 million US in 2025, developing at a CAGR of 7.5% from 2018. The targets of this
examination are to characterize, fragment, and undertaking the size of the Mustard Flour
showcase dependent on organization, item type, application and key areas (Ladha et al.
2016).
These give are sans gluten and progressively gainful options when stood out from customary
wheat flour, subsequently bread shops have started development of such flours and come up
with new inventive things. These things are standard among the prosperity perceptive

purchasers just as among the children and energetic age who are ceaselessly mentioning and
prepared to endeavor new things. This is presumably going to make further advancement
open entryways for the flour premixes creators. The overall mustard promote is creating at a
CAGR of 5.7% during the figure time allotment (2020-2025) (Dayanand and Mehta, 2016).
[b] Wheat Flour
The worldwide wheat flour showcase arrived at a utilization volume of 385 Million Tons in
2018, enlisting a CAGR of 1.3% during 2011-2018. The utilization volume of wheat flour
will arrive at almost 411 Million Tons by 2024, at an anticipated CAGR of around 1.2%
during 2019-2024 (Dayanand and Mehta, 2016).
Wheat flour presently speaks to one of the most famous nourishment fixings utilized over the
globe. It offers medical advantages, for example, bringing down cholesterol levels, improving
digestion, controlling corpulence and directing glucose levels (Dayanand and Mehta 2016).
Wheat flour is utilized widely attributable to the nearness of gluten, a protein that gives
quality and flexibility to the mixture just as adds to the surface of heated items. Factors, for
example, populace development, expanding dispensable wages, rising utilization of bread
kitchen items and changing ways of life have additionally added to the worldwide interest for
wheat flour.
Wheat flour is utilized as the principle fixing in a few pastry shop and cheap food items, for
example, bread, noodles, pasta and breakfast grains. Development in the interest for these
items has prompted a heightening in the general deals of wheat flour over the globe. In
addition, wheat flour is cheap when contrasted with the flour produced using different grains
by virtue of which it is effectively accessible to customers having a place with all financial
gatherings (Ladha et al. 2016).
[c] Xanthum Gum
The worldwide Xanthan Gum size interest was 138.6 kilotons in 2013 and is relied upon to
develop at a CAGR of 5.1% from 2014 to 2020. Developing interest for gluten free
nourishment and drink added substances is required to move request. Moreover, expanding
item interest for upgraded oil recuperation activities is relied upon to impel the business
development (Daryanto et al. 2016).
The business is commanded by barely any significant players including ADM,
Jungbunzlauer, Cargill, Danisco, Fufeng Group Company Ltd and CP Kelco. Key activities

taken by the significant players in the market, for example, joint endeavors and organizations
is relied upon to reinforce their situation in the business (Fleming et al. 2019).
(Medicalnewstoday.com, 2020)
Developing interest for gluten free nourishment and refreshment added substances is relied
upon to impel request. Moreover, expanding item interest for upgraded oil recuperation tasks
is relied upon to push the business development. The business is ruled by not many
significant players including ADM, Jungbunzlauer, Cargill, Danisco, Fufeng Group
Company Ltd and CP Kelco. Vital activities taken by the significant players in the market,
for example, joint endeavors and associations is relied upon to fortify their situation in the
business.
Fufeng Group and Jungbunzlauer are major incorporated item makers, with their assembling
base situated in China and Austria, where starches is gotten from potato and other starch
items, for example, sugarcane (Daryanto et al. 2019).
The organizations including Pfizer, Cargill and ADM are incorporated in their activities
where the organizations get crude materials from providers and assembling thickener; these
organizations attentively devour the item to make an assortment of nourishments and
refreshments just as pharmaceuticals.

References
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Dayanand, R.K. and Mehta, S.M., 2016. Boosting mustard production through front line
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Fleming, J., Pint, E.M., Duke, J., Veronneau, S., Lewis, A. and Reimer, J.R., 2019. Right-
Sizing Marine Corps Intermediate Supply Units: A Staffing Model and Proposed Process
Improvements. RAND Corporation.
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A., Lake, S., Larsen, R.K. and Mardas, N., 2019. Transparency and sustainability in global
commodity supply chains. World Development, 121, pp.163-177.
Gu, W., Archetti, C., Cattaruzza, D., Ogier, M., Semet, F. and Speranza, M.G., 2019,
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Kumar, A., 2016. Production barriers and technological options for sustainable production of
rapeseed-mustard in India. Journal of Oilseed Brassica, 1(2), pp.67-77.
Ladha, J.K., Tirol-Padre, A., Reddy, C.K., Cassman, K.G., Verma, S., Powlson, D.S., Van
Kessel, C., Richter, D.D.B., Chakraborty, D. and Pathak, H., 2016. Global nitrogen budgets
in cereals: A 50-year assessment for maize, rice and wheat production systems. Scientific
reports, 6(1), pp.1-9.
Mills, G., Sharps, K., Simpson, D., Pleijel, H., Broberg, M., Uddling, J., Jaramillo, F.,
Davies, W.J., Dentener, F., Van den Berg, M. and Agrawal, M., 2018. Ozone pollution will
compromise efforts to increase global wheat production. Global change biology, 24(8),
pp.3560-3574.