Danisco blames 'unprecedented' costs escalation for feed additive price hike

By Jane Byrne contact

- Last updated on GMT

© GettyImages/primeimages
© GettyImages/primeimages

Related tags: freight, raw materials

Danisco Animal Nutrition is to increase prices, by up to 10%, across its entire product portfolio.

The company, a business of IFF’s Health & Biosciences division, said the move is effective immediately or as contracts allow.

The price hike is due to unprecedented cost escalation on raw materials, packaging, and logistics.

“We will increase prices by up to 10%, depending on the product grade and geography.”

Its animal nutrition business had historically been able to offset increases in input costs through efficiency gains. That is no longer the case, it said.

“Unfortunately, the COVID-19 pandemic has had a sustained and lasting unfavorable impact on input costs around the world. In the case of transportation, for example, our industry is facing dramatic price increases for air and ocean freight. At the same time, prices of key raw materials and packaging have reached historic highs. Regrettably, we cannot continue to absorb these additional costs and maintain our pace of product supply in the medium to long term.

“By taking this difficult - yet necessary - decision of introducing price increases now, we provide ability for our customers to plan while allowing us to maintain our position as trusted partner and supplier of innovative feed additives and services that continue to deliver value, efficiency and that optimize grower productivity,”​ said Pauel Fokin, vice president of Danisco Animal Nutrition, IFF.

Read our report​ on the dysfunctional freight markets and energy crunch, which are some of the factors behind the hike in raw material costs globally.

Danisco Animal Nutrition announced it was merging with IFF in December 2019. Its feed additives portfolio comprises feed enzymes, betaine, phytogenics and probiotics

Related news

Show more

Related products

show more

Effect of YeaVita R on rumen internal environment

Effect of YeaVita R on rumen internal environment

Angel Yeast Co., Ltd. | 11-Jan-2021 | Technical / White Paper

YeaVita R is a safe and efficient Saccharomyces cerevisiae strain from rumen, which does not contain any carrier and has more than 20 billion viable strains...

The superpower of a healthy gut microbiota

The superpower of a healthy gut microbiota

Lallemand Animal Nutrition | 21-Dec-2020 | Technical / White Paper

The gut of poultry houses a complex and dynamic ecosystem called the microbiota. This ecosystem maintains a symbiotic relationship with the host.

Effect of yeast nutritional factors on immune health

Effect of yeast nutritional factors on immune health

Angel Yeast Co., Ltd. | 07-Dec-2020 | Technical / White Paper

The nutritional status of animals affects their immune functions and resistance to diseases. Hence, nutrition deficiency can cause damage to the animal’s...

Related suppliers

Follow us

Products

View more

Webinars