Rousselot has announced price increase for bovine hide gelatin. The company notes that since January 2014 the South, Southeast and Midwest regions of Brazil have been impacted by a severe drought. Continuation of these weather conditions has seriously reduced cattle slaughter levels in the Brazilian market.
Moreover, raw material availability for bovine gelatin production in South America has reduced substantially due to very strong demand from the global leather industries, an alternative end-markets for the same raw material. Together, this has created upward pressure on raw material pricing.
As a result, Bovine Hide Gelatin prices will increase during the remainder of 2014. This development may also affect the duration of gelatin pricing agreements in sales contracts.
Specific adjusted price levels will be communicated via the local Rousselot sales representatives. Individual price increases may vary due to local market situations and will also depend on the validity period of the latest agreed price.
It should be noted that Rousselot has taken steps to secure appropriate supply for customers´ volume commitments and will keep on focusing on supporting customer growth.
