Breaking News on Food & Beverage Development - EuropeUS edition | Asian edition

Headlines > Business

Pectin prices: Tight supply and high raw material costs lead to price rise for Andre Pectin

Challenges in the raw material supply chain for apple pomice and citrus peel have led to Andre Pectin putting up prices.
Challenges in the raw material supply chain for apple pomice and citrus peel have led to Andre Pectin putting up prices.

DSM subsidiary Yantai Andre Pectin Co. has announced price increases of between 10 and 30% for its complete pectin portfolio in response to 'tremendous cost increases' caused by tight supply chains and rising costs.

The price adjustment, effective immediately for all markets, comes after 'unprecedented challenges' in the raw material market for citrus peel and apple pomace, said the DSM-owned firm.

Apple and citrus peel pectin products are widely used in a variety of food applications, including jams and fruit spreads, confectionery, fruit preparation for yoghurt, beverages, acidified dairy drinks and health supplements.

Cleo Ren, communications officer for DSM Hydrocolloids told FoodNavigator that continuous growth in demand for raw materials coupled with unfavourable weather conditions and tree infestation in the major global growing regions have come together to mean that "all raw material prices, but especially the citrus peel prices have gone up significantly."

She explained that an increasing demand tied to much lower harvests for current year and projection for future crops has led to shortage of the fruits and peel as well as price inflation, "creating enormous pressure on our pectin production cost and global supply."

"We are doing all we can to solve the problem and reduce the impact to our customers," said Ren - who also told FoodNavigator that there is continuing research to identify new sources of alternative raw materials.

Andre Pectin added that despite the current 'extreme external challenges' it continues to invest in and broaden its apple-based pectin range while remaining fully committed to the long term growth of citrus pectin "to ensure sustainable supply to its loyal customers in all markets."

Subscribe to our FREE newsletter

Get FREE access to authoritative breaking news, videos, podcasts, webinars and white papers. SUBSCRIBE

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Related products