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
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
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
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.