Leading gelatine supplier Rousselot has announced a price increase of its hide gelatin portfolio on the back of 'severe drought' in Brazil and upward pricing pressure in the South American market.
The price increase, effective from July 1st 2014 until the end of the year, comes after droughts since the beginning of the year in the south, southeast and midwest regions of Brazil - lading to 'seriously reduced' cattle slaughter levels in the Brazilian market.
"Moreover, raw material availability for bovine gelatine production in South America has reduced substantially due to very strong demand from the global leather industries, an alternative end-markets for the same raw material," said Rousselot in a statement. "Together, this has created upward pressure on raw material pricing."
The firm said that the development may also affect the duration of gelatine pricing agreements in sales contracts.
"Specific adjusted price levels will be communicated via the local Rousselot sales representatives," it said - noting that individual price increases may vary due to local market situations and will also depend on the validity period of the latest agreed price.
"It should be noted that Rousselot has taken steps to secure appropriate supply for customers´ volume commitments and will keep on focusing on supporting customer growth," the gelatine specialist said.