Galactic increases ingredient prices
During these last weeks, Tate & Lyle, Lonza, DSM, Purac, Jungbunzlauer, ADM, ASP and FMC announced price increases on most of their products among which lactic acid and citric acid.
Lactic acid producer Galactic has become the latest company to usher in price increases. Starting January 1st, 2006 Galactic will increase its prices, varying from 5 to 15 %, depending on the product concerned.
Galactic said that it tried to contain this increase as long as possible in order not to affect the agreements signed with its customers during exercise 2005.
However the substantial increase of oil, packaging and raw materials (among which sugar) prices obliged Galactic to transfer part of this increase on its sales prices.
The company said that this increase falls under a general market tendency observed today in the sector of food ingredients. During these last weeks, Tate & Lyle, Lonza, DSM, Purac, Jungbunzlauer, ADM, ASP and FMC announced price increases on most of their products among which lactic acid and citric acid.
Galactic said that it will continue to work on the optimisation of its manufacturing process in order to guarantee in the future a limited impact of the energy costs on its production costs.
