Rousselot Announces Gelatine Price Increases for 2013

Rousselot announces price increases of up to double digit levels for 2013.

16 Nov 2012 --- In line with publications made earlier this year, Rousselot confirms that price trends in gelatine continue. There is continued solid growth of gelatine demand globally. At the same time raw material markets for Gelatine are tight in supply, while demand for raw materials is increasing. This leads to rapidly escalating prices for gelatine.

Demand for safe, secure bone gelatine that can cross borders from a regulatory standpoint is very strong. Markets increasingly take an interest in this gelatine quality. On top of that bone gelatine is impacted most strongly by its raw material markets. Global prices of soy meal and meat & bone meal have soared upwards to unprecedented levels. As a result demand for bones has increased. In parallel bone supplies are depressed, hence bone prices have risen sharply. Because of these trends we announce a price increase of at minimum 10%. In China price increases are significantly higher, gelatine prices have developed towards global parity.

Demand for pig skin gelatine is quite strong in its primary markets for Food, Nutritionals and Pharmaceutical applications. Pig skin gelatine is also impacted by lower slaughters and new stricter EU regulations for pig farmers that lead to lower numbers of animals. On the skin demand side we see food markets around the globe demanding more pig by-products. Overall this leads to further price inflation of pig skins. Hence Rousselot announces price increases ranging from 7% into the low double digits.

Demand for hide gelatine has not been satisfied until recently, due to its availability constraints. Supply of bovine hides has now modestly improved and the availability of hide gelatine is less restrained than before. At the same time demand for hides from all sectors is so strong that costs still continue to rise, be it at a slower pace. Consequence is that we announce a more modest price increase here of 3 to 5 %.

The exact new price levels will be communicated via the local Rousselot sales representatives. Price increases may vary due to local market situations and will also depend on the validity period of the last agreed price. It should be noted that we expect to maintain availability of gelatine and we will continue to provide the usual high levels of customers’ service by Rousselot.