Europe's starch makers cut production as demand drops from pandemic peak
Slow economy cuts demand for grain and potato-based starch
Starch and its derivatives, made from wheat, maize, potatoes and tapioca, are used in products from ice cream to cosmetics, paints, pills and cardboard due to their sweetening, thickening and texturizing properties. REUTERS/Lucas Jackson/File Photo
Starch makers in Europe have slowed production as a drop in demand - particularly from paper and cardboard manufacturers - and cheap imports from Asia leave them with excess capacity, and see little prospect of improvement before late this year.
Three industry sources told Reuters the European Union's starch industry is running at about 70-75% of potential capacity, as demand declines from its pandemic-era peak. The sources asked not to be named as the issue is sensitive.
