Brokers: The price increase window for the food industry has been fully opened
[Epoch Times November 15, 2021](Epoch Times reporter Liu Yi comprehensive report) On November 15, Chongqing Fuling Mustard Group Co., Ltd. (Fuling Mustard Group) announced an increase in the price of its products, an increase of 3% to 19% . Recently, the mainland has raised the prices of commodities such as oil, salt, sauce, vinegar and paper towels, which are related to people’s livelihood.
Fuling Mustard Cabbage Group issued an announcement on the 15th that due to the continuous increase in the cost of main raw materials, packaging materials, auxiliary materials, energy and other costs and the company’s optimization and upgrading of products, the company decided to adjust the ex-factory prices of some products. The increase of each category was 3%~19. % Range, price execution will be implemented at 17:00 on November 12th.
It can be seen from the announcement that the Fuling Zhacai Group increased the price before the announcement day.
Red Star News reported on November 14 that a staff member of a food wholesale company in Chongqing said: “The 70g and 80g packaging of Wujiang mustard pickles, which were notified to us two days ago, has risen by 30 yuan per box.”
Another Chengdu dealer said: “Fuling mustard tuber company notified us that the price of Wujiang mustard mustard products has increased by 20%, and the price of the most one has increased by about 50 cents (per bag).”
“Beijing Business Daily” reported on the 15th that Fuling mustard mustard at the 2021 semi-annual report investor exchange meeting revealed that in the first half of this year, the overall price of raw materials rose by 20% to 30%, and raw materials accounted for about 40% of the cost. Changes in prices will naturally have an impact on gross profit in the second half of the year.
China’s food industry analyst Zhu Danpeng analyzed that in the past, the price increase in Fuling mustard was mainly affected by the company’s performance, profit and stock price. In addition to the above factors, the price increase has also added factors such as raw material costs and power restrictions.
However, in Zhu Danpeng’s view, the cost will continue to rise in the future. The price increase will help Fuling mustard tuber to improve the profit of the stage, but it may not be helpful to the performance in 2022.
The price increase in Fuling sparked heated discussions among netizens, “For those who love to eat mustard, pickled mustard can’t be eaten.” “Fuling will increase prices and eat other brands.”
Recently, due to the rise in the prices of raw materials, the prices of daily necessities such as oil, salt, sauce and vinegar, noodles, and paper towels have increased.
According to a report by the “Daily Business News” on November 15, the grain and oil giant Arowana adjusted the prices of different oil types at the end of 2020 and March to April 2021, and the overall price increase was about 10% to 15%. However, the company said on November 3 that the current price increase has not fully covered the increase of raw materials, and the trend of raw materials and consumption needs to be paid attention to in the later period.
Listed companies in the mainland salt industry also collectively raise prices. On November 3, Xuetian Salt Industry stated that the ex-factory price of Xuetian small packets of table salt has recently increased within 10%, and the price of industrial salt has increased by 30% to 50%. Subsequently, Yunnan Energy Investment, Su Yanjingshen, etc. also successively revealed price increase information.
Soy sauce manufacturer Jiajia Food released price adjustment announcement on November 4：The ex-factory prices of Jiajia soy sauce, oyster sauce, cooking wine, chicken essence and vinegar series products will be adjusted, ranging from 3% to 7%. The new prices will be officially implemented at 00:00 on November 16, 2021.
Haitian Flavour Industry announced on October 13 to adjust the ex-factory prices of some of its products such as soy sauce, oyster sauce, and sauces. The adjustment range of main products ranges from 3% to 7%. The new price implementation will be implemented on October 25, 2021.
Hengshun Vinegar Industry announced on November 3 that it will adjust the prices of some products from November 20, 2021, ranging from 5% to 15%.
Keming Food Co., Ltd., which produces noodles, flour, and instant food in the mainland, issued a price increase announcement on November 13, and will implement the new price policy from December 1, 2021. However, the specific price adjustment plan has not been announced.
In addition, Qiaqia melon seeds, Anjing Foods, Jiahe Foods, Zhongshun Jierou and many other leading listed companies have also increased their prices. The price-increased products cover various sub-sectors such as quick-frozen food, snacks, beverages, and tissues.
Regarding this round of price hikes, the “China Fund News” reported on November 13 that the rising prices of consumer goods indicate that inflationary pressures are being transmitted from the production sector to the consumption sector.
This round of price increases is related to the daily life of the people, and some netizens expressed concern about it.
Netizens in Shenyang, Liaoning, “Happy HOU” complained: “After a few days, the consumption has gone up.”
Guangzhou netizens “octopus cat ocat” are looking forward to when their wages will be increased: “When will wages be increased.” “My five-five-five” also said: “They are all quietly increasing prices, so wages will not increase.”
Editor in charge: Lin Congwen#
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