Ladies and Gentlemen, 
 
For a start, we are happy to introduce today our new colleague to you. Mrs. Samare Tashakori joined us at the beginning of March as Reinforcement of our Team and is supporting us now in the completion of our correspondence in foreign languages and in the execution of orders. We wish her every success in her new activities!

 
Many business sectors have to suffer innocently from the effects of the current financial crisis, with the exception - and this is rather pleasant from our point of view – most areas of the Food Industry to which we as Suppliers of Raw Materials are closely adherent.
 
Many of our additives are also applied to technical purposes. In this field the sales have gone down considerably, which had a positive effect on the prices – in connection with good yields of the recent harvests. 
 
Hopefully, we are offering you some help with our assessment of the market, when you have to make your decisions. Please do not hesitate to contact us whenever some further questions might arise. 
 
Agar Agar 
Prices in the countries of origin are stable. Due to a rather weak demand (specifically in Eastern Europe) there are larger quantities available. Here we have to observe a somewhat distorted competition, since also for low-grade qualities unrealistic prices exist. We recommend covering your demand in the medium term. 
 
Carragheenan 
The market situation has unwound, and both the raw materials (algae) as well as the product are now available again. The result: Prices fell since the beginning of this year. Here we would like to recommend to wait and see what the further development of prices will bring, and to buy only meeting
the immediate requirements for the time being.
 
Guar Gum 
Quotations reached the lowest level ever since many years. The reasons may be seen to some extent in quite satisfying yields of the last harvest, to some other extent in the circumstance that the demand (specifically for technical applications) peaked off. We recommend covering your demand for the third
and fourth quarter of 2009 already now. 
 
Locust Bean Gum 
Prices on an 8-years’-low! Presently, the bottom has been reached. This is a good opportunity to cover any long-term demand.
 
Konjac
In comparison to the yield of 2007, the quantity of the harvested Konjac roots (the raw material for Konjac Powder) went down by one third in 2008. The crop failures were caused mainly by a very cold winter season 2007/2008, and by the devastating earthquake in China.  Due to these unfavourable factors, we have to note already now a rise in prices which – from our point of view – will continue until the middle of this year. 
 
Tara Gum 
Here, too, prices have settled on a low level, in comparison to the months before. An uncertainty has to be observed in the market, with respect to the development of prices in the future. Our recommendation: to cover only the short-term demand, and await the further developments. 
 
Xanthan Gum
Favoured by a stable demand, and a normal situation regarding the raw materials, we do not expect any increase in prices for the next few months, and hence recommend covering your short- and medium term demand. 
 
NEW: 
With immediate effect, we took over the representation of the Danish manufacturer Seafood Flavour AS, the producer of a Natural Extract of Blue Mussels. The product is optimally suitable as a flavouring agent and enhancer for all fish products. 
 
• a Clean Label Product
• available as a ready-to-use liquid and/or as a spray-dried powder
 
 
Hopefully, we could raise your interest.
 
 
With best regards from Hamburg
 
Yours,
A2 Trading Team