Managing volatile raw material supply

In this special edition, we provide another chance to read the five most popular articles on raw material prices and volatility in 2011 so far.

Raw material prices remain one of the most pressing worries for food manufacturers, as sky high prices for certain commodities have repercussions through the markets. Who would have thought oil fields could impact beverage stability, or that the popularity of bell peppers could determine the fate of beetles used for red food colouring?

This butterfly effect calls for careful management, and wise firms learned from the 2007/8 peaks and put in place cost control strategies and new contractual arrangements.

In some cases, however, high prices for one raw material can yield new opportunities for another, and stimulate innovation from ingredients suppliers.

FoodNavigator.com’s usual breaking news coverage will resume on Monday.

CEO shares how Nestle copes with raw material price hikes

Hydrocolloid supply in worst state for 30 years, Cargill

Chr Hansen explores new carmine sources as prices bite

High sugar prices stimulate neotame take up, NutraSweet

Prolonged guar gum price hikes due to oilfield demand, expert