**MARKET UPDATE* Mr. JohnMonaghan Robertet Flavors 10 Colonial DriveuP.0.

Box 6840 Piscataway, NJ 08855-6840

more information contact: Tim Andon technical account manager tjandon@ticgums.com

(410) 273-7300

Gum Arable Market Report

White Marsh, MD-October 20,2009-The 3rd Quarter is the rainy season for the gum Acacia growing region. From a harvest perspective, it is the quietest time of year. Sufficient rains during these months are necessary for proper yields and crop totals come early 2010 when collections are at their peak. Rains over the last few months have been moderately low compared to normal. While this is not disastrous for the upcoming crop, it is an indication that we may not see bumper crop totals in early 2010. From a strictly harvest perspective, the expectation should be an average to slightly below average crop. This 3rd Quarter, however, has been less quiet than most due to non-harvest related events. The Sudan government owned Gum Arabic Company, the GAC, is liquidating its inventory and will close after 40+ years of operation. Years of decreasing market share and mismanagement are the drivers. One of the key roles the GAC historically has played is to carry a buffer stock, especially of Acacia senegal, and the availability of this buffer stock has helped to mitigate the effect of periodic shortages. The short-term effect of weak demand and the GAC liquidation is an abundance of Acacia senegal available at a time in the harvest cycle when there is historically very little raw material purchase activity. This has helped further move pricing of Acacia senegal towards that of Acacia seyal. The longer-term effects are not known yet, but logically it should result in greater price and supply volatility, which is not good for processors or end users.
So the main story heading into 2010 for Acacia senegal is actually the sell off of inventories in Africa that have been held and stored from prior seasons. The senegal market is weakening in price for the moment, and more normal supply/demand forces will begin to take over in a few months time. At that point, the upcoming crop will have significant influence over pricing moves although demand is still expected to be soft.
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Disclaimer: This market report has been compiled keeping the present facts and figures and the past trends of the market in mind, with an aim to helping buyers in taking a good buying decision. However, buyers should check their own situation, work out their own figures, and make a decision on their own. Any decision based on this report will not be our responsibility. This report has been compiled only for the benefit of the buyers and industry in general with utmost good intentions.

Acacia seyal demand has been steadier than that of senegal, so pricing has likewise remained more stable. We do not expect significant movement in the price of seyal until the new harvest begins to arrive and a better supply/demand picture for 2010 appears. The long positions taken by many on Acacia senegal this off season should provide resistance to upward price pressure on seyal even if the crop is slightly below average in size since it is illogical to pay more for seyal than senegal. Norths interest for consumers to continue to move from senegal to seyal for lower prices.

With a potential for greater volatility in price and supply of gum acacia ahead, many customers are evaluating a move to our patent-pending TicaPANR technology which replaces gum acacia in sugar and sugar-free panning, binding, sealing and polishing applications. It is approximately 20% lower in cost than gum acacia, is made in the USA from locally available ingredients, and offers several other processing and functional benefits. or For more information on TicaPAN@, how gum acacia market conditions will affect you, please contact your sales representative or our technical service hotline at (800) 899-3953 or (410) 273-7300. For specific details, please contact: Tim Andon technical account manager tjandon@ticgums.com (410) 273-7300

Disclaimer: This market report has been compiled keeping the present facts and figures and the past trends of the market in mind, with an aim to helping buyers in taking a good buying decision. However, buyers should check their own situation, work out their own figures, and make a decision on their own. Any decision based on this report will not be our responsibility. This report has been compiled only for the benefit of the buyers and industry in general with utmost good intentions.