Concern around stock levels of commodities such as sugar, wheat and corn, is claimed by ingredients group Jungbunzlauer as the rationale behind its 10 per cent hike in the price of its xanthan gum, erythritol and citric acid products.
The Swiss company said that with the spiralling costs of those agricultural raw materials, it is obliged to pass on higher input costs to its food manufacturing customer base.
The company, which has its headquarters in Basel, specialises in natural and nature identical ingredients. It said that the price increase will apply across its citric acid and citrate range, as well as its xanthan gum, gluconates and specialty products and erythritol.
Jungbunzlauer would not give any further comment on the move or any precise indication as to when the price increases would take effect.
The Swiss group operates production sites in Austria, Canada, France and Germany and has been increasing capacity in recent years to extend the volumes of xanthan gum, citric acid, calcium citrate, and gluci-delta-lactone ingredients range.
It added that it is reviewing its manufacturing processes to determine how to secure greater efficiencies and lower manufacturing costs, while not compromising on quality.
The citric acid industry, in particular, continues to be influenced by an increased supply from China and an abundant global capacity. And European suppliers have been restructuring in order to enhance the competitiveness of their citric acid production activities.
Chinese imports of citric acid to Western Europe grew significantly from 2004 to 2007, with the rise in such imports during those years leading to high European Commission antidumping duties in 2008. However, the antidumping measures are considered to have been not as effective on import volumes as was expected.