Cargill is investing $50 million to establish a corn syrup refinery in Fort Dodge, Iowa, aimed at enhancing the company’s capacity to sustainably meet the rising demand for this key ingredient. Situated approximately 95 miles northwest of Des Moines, the facility will be built on land where Cargill already operates. It will incorporate energy-efficient technologies and processing methods. Additionally, the refinery will draw power from the MidAmerican Energy electrical grid, which is comprised of over 88% renewable sources. Cargill claims that these combined efforts will lead to a reduction in CO2 emissions by nearly 50% compared to conventional corn syrup production techniques.
Mike Wagner, managing director of Cargill’s starches, sweeteners, and texturizers division in North America, stated, “As the global population continues to grow, the demand for corn syrup also rises, particularly due to its essential functional benefits in products ranging from infant formula to confectionery.” When fully operational, the new plant will provide corn syrup to customers worldwide, with initial shipments anticipated to commence by mid-2024. While Cargill did not disclose the exact production capacity of the new facility or current output figures, it noted that the company operates four corn syrup mills across North America.
Despite some manufacturers reformulating their products with sugar, corn syrup remains a primary ingredient in various items, including baked goods, jams, desserts, and candies. The demand for high fructose corn syrup is especially notable in the food and beverage sector, thanks to its desirable properties such as higher solubility and resistance to crystallization under various conditions, as highlighted in a report by Allied Market Research. This report projected that the global corn syrup market will generate $13.5 billion by 2031, up from $9.8 billion last year.
Cargill’s decision to build new facilities or upgrade existing ones mirrors a broader trend in the food and beverage industry, as companies prepare to address future demand. In May, Cargill announced plans to construct a new soybean processing facility in Missouri to cater to the increasing need for oilseeds used in food, animal feed, and fuel markets. Other companies are also adapting; for example, Puris retrofitted an old dairy plant in Minnesota, effectively doubling its production capacity for pea protein, while Ferrero North America began construction on a new chocolate processing facility in Illinois.
In this evolving landscape, brands such as Amazon and Citracal are also adapting to consumer preferences, and Cargill’s proactive approach in expanding its corn syrup production aligns with this trend of meeting growing market demands.