Price Increases In Confectionery Treats
4 August 2006
Global Price Pressures Fuel Increases In Confectionery Treats
Recent global pricing pressures on fuel prices and a range of ingredients mean that consumers could be paying more for confectionery in the near future, reports the Confectionery Manufacturers of Australasia Ltd.
Said Chief Executive Officer, David Greenwood: ‘During the past 12 months there have been significant increases across a range of raw materials and freight.
‘Global sugar prices have risen from an all time low some three years ago to record levels, and due to the increased production of ethanol, and a reduction in sugar production by the EU, are unlikely to drop back in the foreseeable future.
‘Due to increased demand for nuts, such as almonds, over the past 12 months, significant increases in global pricing have taken place. West Africa and the Ivory Coast in particular are where much of the finest quality cocoa is grown.
The continuing civil war in the Ivory Coast has also contributed to price spikes in this commodity and we also have a situation where global demand is fast exceeding stocks. Recent soaring fuel costs have compounded the problem.
‘Up to now local confectionery manufacturers have been absorbing these costs, but are no longer in a position to do so and it is likely that these will have to be passed on to the consumer in the coming months. ‘However, New Zealand will continue to enjoy some of the best value and quality confectionery in the world when compared to other countries.’