CHICAGO, (Reuters) — Commodities trader Cargill Inc. and a Danish partner plan to invest US$22.5 million in a new potato starch production unit in Denmark.
The move comes as the U.S.-based company seeks to capture consumer demand for simpler ingredients.
Cargill and Danish potato starch partner AKV Langholt AMBA plan to operate the project through AKV Langholt’s facility in Denmark.
Cargill did not say how much of the investment it would account for.
Cargill has been expanding in new “native starches” produced from plants such as corn and wheat as an alternative to more processed starch derivatives used to bulk up food products such as pasta sauce.
The boost in so-called “label-friendly” ingredients comes amid a broader push for diversification as Cargill and other merchants battle tight margins amid excess grain supplies.