Fedima: dramatic increases in raw material prices

Brussels / BE. (fed) Recently there have been many articles in the media highlighting the worldwide increase in demand of food, feed and fuel. This demand is creating an ever growing need for agricultural products, however, it is obvious that higher yield alone would not satisfy the increasing market requirement and hence arable acreages would have to rise – says the Federation of European Union Manufacturers and Suppliers of Ingredients to the Bakery, Confectionery and Patisserie Industries» (Fedima; Brussels) in a press release:

As a consequence, key raw materials for the bakery industry have seen dramatic price increases. Some examples of these over the last six to twelve month: soya bean- and palm oil prices plus 40 percent; grain prices plus 50 percent; cereal derivates – flour – plus 15 to 20 percent; starches plus 30 percent; dextrose plus 30 percent; milk powder plus 35 percent; dairy based derivates such as lactose and whey plus 100 percent.

Fedima is very much concerned that the significant rise in the prices of these agricultural products is not a short term measure but rather represents the beginning of a more permanent structure. In addition, continuous news on the influence of climate change on agriculture is also fuelling further price speculation. Fedima is therefore very anxious about the ability of its members to continue to compensate for the trend of rising agricultural commodity costs, a trend which is totally outside its control.