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

By Nathan Gray+

05-Aug-2014

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."

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