Production problems and low world stocks will keep global cereal
prices high this year, according to a new report, suggesting that
the food industry's struggle to maintain margins will not end any
time soon.
Rising costs and shrinking supply of sugar molasses are driving up
the cost of yeast extract production, says Bio Springer, which is
today announcing a double digit price increase for its extracts as
of next year.
Hot weather, the rising cost of raw materials and a poor potato
harvest have contributed to a downturn in the German snack market –
threatening profits for producers balancing mounting costs with
waning demand.
FMC Biopolymer will again increase prices for its food ingredients
on the back of high energy and raw material costs, and the company
says it expects prices to continue rising.
US manufacturer Kraft Foods has announced a massive extension to
its three-year restructuring plan that will see a further 8,000
jobs and 20 production plants go, as the company absorbs rising
energy and ingredient costs.
Prices for raw materials and energy are forecast to rise by around
five to 10 per cent this year, but Nestlé believes cost cuts will
balance the equation out, the company's chief executive said
yesterday.
Sun Chemical will increase the prices in Europe for it inks by
between six to 10 per cent, marking another rise in packaging imput
costs for processors.
Kraft Foods has confirmed that it is increasing prices of many of
its products in the United States by an average of 3.9 per cent
because of rising energy and packaging costs caused by higher
global oil prices.
Amcor, the world's largest producer of PET, is pushing for a third
round of price increases this year, while a report forecasts
polymer prices are set to hit new highs next month.
In the face of steep increases in the price of oil-based packaging
continuing to rise, Ticona says it has developed a lower-cost grade
of polymer for food products.
Sealed Air is still finding a growth market for its Cryovac food
packaging products, despite the price increases the company made to
offset higher input costs.
UK-based Grampian Country Food has issued a warning to customers
stating it will raise prices for its meat products due to the
escalating cost of oil, gas, electricitity, feed and packaging.
In an interview with FoodProductionDaily.com (FPD), Frost &
Sullivan packaging machinery specialist Kallol Bagchi talks about
the strategies food processors are using when sourcing their
equipment. He identifies 'one-stop'...
A range of additives that allow extruders to improve melt strength,
increase throughput and reduce costs when processing polyester
resins has received FDA sanction for food-contact packaging
applications.
Alcoa has announced a significant jump in sales and profit for it
first quarter on the back of strong steel prices, a sign that
packaging costs will continue to impact many food and beverage
producers, reports Simon Pitman.
Del Monte has announced that its profits fell significantly for its
latest financial quarter, mainly as a result of rising steel prices
- further proof that food manufacturers are feeling the pinch as
steel prices continue to rise,...
BASF is set to raise its European prices for the styrene polymers
Terluran (ABS) and Luran (SAN) by €200 per metric ton, while Saudi
comments have triggered fears that high oil prices will be
sustained. Anthony Fletcher reports.
The rising cost of aluminium, oil-derived chemicals and other raw
materials has lead to major soft drink packager Pepsi Bottling
(PBG) to issue a profit warning, illustrating the increasing impact
that peak metals and plastics prices...
A new report analysing IT budget and spending trends suggests that
many firms separate, to their detriment, IT investment from
investments in production capabilities.
Chinese consumption is a major factor behind potential steel price
increases in Europe, something that could hit food and beverage
packagers globally, writes Anthony Fletcher.
EU fruit and vegetable canners are concerned that major European
steel producing companies such as Arcelor, Corus, Rasselsein and
US-steel could be about to increase steel prices by 20 to 30 per
cent. Anthony Fletcher reports.
The European steel market seems to have gone crazy, according to
MEPS, a UK supplier of steel market information. The company says
that in 25 years of analysing steel prices, it has not seen
anything like the present mania.
Surging wheat prices are leading to some hard bargaining along the
supply chain over where the extra costs can and should be taken,
according to millers and bakers.
Finsbury
Food Group, the UK speciality cakes manufacturer, had such a
successful Christmas trading period that it found itself unable to
meet demand for its products and suffered a reduction in profits as
a result.
Northern Foods has warned that pre-tax profits for the first half
of 2003 are likely to be lower than expected as a result of rising
ingredient costs and the loss of several contracts.
Ahlstrom's LabelPack division, one of Europe's main producers of
specialty papers for flexible packaging and labelling, has
announced a price increase of €100/tonne for all paper grades.
Burcon NutraScience Corporation claims that a third-party
engineering report relating to the company's protein separation and
purification technology has proved the process to be financially
viable.
Sonoco, the global provider of packaging products for the food and
beverage industry, has announced that it will increase prices for
all coreboard grades manufactured in and shipped to continental
Europe by €50 per metric tonne.
Sonoco, the US-based global packaging manufacturer, has announced
it will increase prices for its paper-based engineered carriers
(tubes and cores) by between 7.5 and 12 per cent for its North
American and European operations, effective...
Graphic Packaging International Corporation, the North American
folding carton manufacturer, reported first quarter net income
attributable to common shareholders of $2.4 million (€2.7 million)
on sales of $263.7 million, compared...
