Gelatine costs rise amidst financial wobbles

By Neil Merrett

- Last updated on GMT

Related tags: Cost, Gelatin

A global producer of Gelatin-based products for use in functional food formulations says it has no choice but to raise the prices for its goods, owing to increasing material and energy costs.

Gelita, which produces both gelatin and collagen hydrolysates for use in protein beverages and health foods, says it is no longer able to offset spiralling production charges with company-wide efficiency drives.

Company spokesperson Michael Teppner said that the move reflected industry wide difficulties for natural product makers, which are as reliant on livestock supply and they are energy requirements.

“Like all gelatine manufacturers, we are currently going through an extraordinary period,”​ he stated. “We are as affected by the availability and delivery conditions set by slaughterhouses and meat processors, as we are on the current increasing prices for energy.”

Cost drives

Teppner claimed that energy and raw material costs as a whole had risen to such an extent that it was no longer able to compensate within its own operations.

Despite making what it claims were active attempts to reduce direct impacts on it customers, Gelita says it entire operating cost structure, from farm to distribution has been hit by financial uncertainty.

“Energy costs in particular affect us not only directly; but also indirectly with increased costs incurred during pre-production steps, from the farmers at the beginning of the chain extending to transport companies and slaughterhouses all of whom have had to pass on the massive increases,”​ claimed Teppner.

Price push

In order to maintain product quality, the company said that at current costs, it could no longer continue to execute structural changes to its regional operations to offset price hikes and had to push charges onto its customers.

Gelita did not reveal what level of price increases it would move to enact though claimed it would continue to supply products worldwide on a competitive basis.

Gelatine has a wide variety of uses in food production, ranging from confectionery and cake manufacture to functional snacks and beverage formulation.

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