AAK, a manufacturer of high value-added specialty vegetable based fats and oils, recently announced the need for a price increase across the markets they serve. This is the first increase since 2009.
“The food ingredients industry, like many industries, has experienced increased costs through the recent economic recovery period” said Terrence Thomas, President AAK, USA and Canada. “AAK has worked diligently to mitigate these upward pressures through aggressive productivity improvement efforts across all aspects of our business, however, after five years we are no longer able to absorb costs not offset through these efforts”, said Thomas.
Costs associated with transporting and converting raw materials have increased substantially as have input costs associated with labor, healthcare, storage and handling, regulatory and food safety, packaging and waste management. The result is the need for an increase of 3.5% to 7.0% for all non-contracted truck load business as of January 1, 2015. For less than truck load business, the percent changes may vary.
AAK remains fiercely committed to the food ingredients industry and to helping customers deliver industry-leading products and innovation. AAK is equally committed to the partnerships they have developed in the industry. Customers can expect to be contacted by their AAK sales professional in the coming days to answer any questions. For immediate needs, please contact 973-344-1300.