DSM hikes Quali-Blends price as input costs surge
The Swiss-based ingredients giant put the increase down to rises in ingredients and raw material prices as well as energy and transportation costs.
As NutraIngredients.com went to press, DSM announced beta-carotene and lycopene were having their market spot rates increased by at least 10 per cent for new customers. The same factors were cited for the increases.
Oil and beyond
DSM Nutritional Products global premix manager Holger Blanke said the leap in the price of oil in the past year had been the major contributing factor to its own price hike.
While the price of oil had levelled off, it had risen to as much as $145 per barrel in July, which had severe knock-on effects.
“The oil situation has affected all industries at all levels,” Blanke told NutraIngredients.com. “It has had a knock-on effect in electricity and gas, transport. Many of our customers are experiencing similar pressures.”
The cost of several key vitamins and minerals had also sky-rocketed, he said, which had contributed to the decision.
Other blend components such as carriers like maltidextrose had also experienced upwards pressure.
Blanke highlighted upward pressure on vitamin C as an example, with global supply stretched thin and the company sourcing beyond its own Scottish vitamin C manufacturing plant.
The latest moves follow other hikes in key DSM offerings such as letter vitamins and minerals.
Holger said the fact Quali-Blends was a suite built upon customisation meant the hike was not quantifiable and varied from batch to batch.
He also highlighted how important the situation in China was to the global vitamins and minerals market.
“A lot of manufacturing plants shut down because of the Olympics so it will be interesting to see what happens after the Games are finished,” he said. “Availability and volume is likely to increase so it will be interesting to see the outcome of that especially in regard to vitamin C. The vitamin B market is also short at the moment.”
Quali-Blends
Quali-Blends are utilised by a cross-section of industries including beverages, dairy, infant nutrition and food supplements.
Blanke said DSM offered thousands of customised blends with the beverage industry being its most prolific customer.
DSM launched Quali-Blends in May as a means to pool its quality control, formula customisation and environmental programmes under one brand concept.
DSM Quali-Blends is built on five platforms: quality, reliability, traceability, safety and sustainability.
