Exploring Export Strategy for Peruvian Tara Gum and Powder
Tara Powder is a natural source of tannins extracted from the Tara Pods (Caesalpinia Tinctoria). Tara Powder is mainly used as a tanning agent in the leather industry but also in the wine and food industry; tara gum is primarily used in the food industry as hydrocolloid where it competes with guar gum and LBG. Due to the increased demand for clean and natural products demand for tara powder has increased significantly in the last decade.
Products
tara powder, tara gumYear
2015 – 2017
Country
Brazil, EU (general), Hong Kong, Italy, PeruType of activity
- Business Matching
- Consulting
- Market Intelligence
Year
2015 – 2017
Country
Brazil, EU (general), Hong Kong, Italy, PeruType of activity
- Business Matching
- Consulting
- Market Intelligence
Tara Powder is free of extraneous substances, making it possible to process very bright and lightfast leathers with maximum softness and fullness and a very fine, tight grain. The grain of leathers tanned with Tara Powder also has a higher resistance to breaking load, in comparison with other vegetal tannins. Despite its' unique characteristics, the tara powder market for tanning agent used has been very competitive, as the competition takes place in established markets where margins are generally low.
One of the largest Peruvian tara producer cooperatives received Globally Cool's support to review their export strategy and advice on new directions for their strategy.
Activities
To help the Peruvian cooperative, Globally Cool went through different phases:- International market research - Several data sets were analysed before approaching buyers and sector peers. Data analysis included: identification of global trade flows, prices, channels, segments and requirements.
- Compilation of the long list of potential buyers in key markets - more than 100 potential buyers were long-listed.
- Field research (making connections with buyers) - To contact buyers Globally Cool's consultants have visited the 2 most important leather trade fairs in the world: Lineapelle (Italy) and APLF (Hong Kong). A large number of meetings was pre-arranged and interviews were held.
- Long-list of 100 companies was shortened to 32 potential prospects.
- Several selected prospects were matched with the cooperative.
- Presentation in Lima for the cooperative with the theme 'export strategy alternatives and beyond'.
