Gelita to Increase Gelatine Prices

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.

08/10/08 Due to the substantial increases in prices for raw materials, energy and transport, GELITA AG, the world's leading manufacturer of gelatine and collagen hydrolysates, has been forced to increase its own prices.

"We have done our best to compensate for these external cost increases and have in fact been able to restrict our own price increases to a minimum over a longer period of time. However, in recent months, the prices for energy and raw materials have increased dramatically and we have not been able to compensate for these”, according to GELITA spokesman Michael Teppner.

"Like all gelatine manufacturers, we are currently going through an extraordinary period. As a manufacturer of a premium natural product, 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. 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. We as refiners of the product have no control on these two factors that represent the major part of our cost structure."

As a global company, GELITA AG said it has been in a position to compensate for such price increases at least partially by means of temporary regional structural changes. In this way, it has been possible to prevent significant price volatility. This, however, is no longer possible.

GELITA AG said it continues to focus on satisfying increased demand for gelatine and collagen hydrolysates by supplying products of the highest quality and availability in combination with a range of additional services. GELITA AG will continue to do this at competitive prices on a worldwide basis.