Russia: Prices of sauces affected by the cost of raw materials

Published 2021년 4월 9일

Tridge summary

Large mayonnaise and sauce manufacturers, including Efko Group, Nizhny Novgorod Fat and Oil Plant, and Skeet, have increased their product prices by an average of 10% due to rising costs of oil, packaging, fuel, and logistics. The price hike, which ranges from 5-12% depending on the product, is not enough to cover increased production costs. The situation is worsened by the high cost of sunflower oil, which has surged by 59% since the end of 2020. The article also anticipates price increases for other food products, except for meat, in the middle of the year. The Ministry of Agriculture is working on new measures to support the industry and regulate oilseed exports to help maintain profitability and stable prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Large manufacturers of mayonnaise and sauces have announced to retail chains that their selling prices have increased by an average of 10% since April. The reasons are the continuing growth in the cost of oil, packaging and fuel. Some players are waiting for the stabilization of the situation after the introduction of the export duty on oil. But other market participants warn that suppliers of almost all food will raise prices in the middle of the year. Efko Group of Companies (Sloboda brand), Nizhny Novgorod Fat and Oil Plant (NMZhK; Ryaba, Sdobri brands) and Skeet company warned retailers about an increase in selling prices for mayonnaise and sauces by 5-12% in April, depending on from the type of product. “Kommersant” has a copy of the manufacturers' appeals. According to NMGK, prices for key raw materials continue to grow: from the end of 2020 to March, sunflower oil has risen in price by 59%, tropical oils and their fractions - by 20–44%. In addition, the cost of packaging, ...

Source: Oilworld