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Bio Springer is announcing price
hikes for yeast extracts
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2007-09-25
Energy and raw material costs, combined with supply issues are currently
contributing to price hikes for yeast extracts. Bio Springer, one of the
leading manufacturers of yeast extract worldwide is announcing price increases
which will exceed 10%. The price increases will come into effect on January
1st 2008 .
Bio Springer manufactures yeast extracts from Saccharomyces cerevisiae
yeast, primary grown on sugar substrates, through an energy intensive
process.
Over the past 3 years sugar molasses prices have increased by approximately
10 % annually and molasses have become scarce for the fermentation industry.
On the other hand, skyrocketing oil prices have prompted energy costs
(mainly electricity and gas) to increase dramatically in the same period.
Year after year, Bio Springer has tried to minimize the impact of these
cost increases for its customers, by increasing only moderately its sales
prices and absorbing a significant part of the additional costs. After
3 years of continuous cost increases, Bio Springer can no longer delay
a necessary price adjustment.
Demand for yeast extract is growing, driven by the growth of convenience
food production, by the growing interest of food manufacturers for clean
label savoury ingredients (e.g. the search for salt and MSG substitutes),
and the search for animal free culture media in the pharmaceutical industry.
In order to better serve this growing demand, Bio Springer
has invested in new capacities in Strasbourg, France, and implemented
a debottlenecking of its Maisons-Alfort, France site this summer. More
over, the company announced earlier in July its decision to build a new
yeast extract plant in Cedar-Rapids, IA (USA). The plant will start operation
during the first half 2010.
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