It’s been over twelve months since our last general price increase, costs continue to rise and we find we need to pass on some of these increases.
Adverse exchange rate pressure, increases from manufacturers, transport and energy are all considerations for a general price increase which will take effect immediately.
In regard to Dairy Products and in particular, imported Dairy Products, the key factors causing increases can be explained by:
• Flow on impact of drought on world market dairy prices
• Steep increase for input price for farmers causes milk price increase
• Diversion of production away from milk into cereal production
• Reduced stocks of butter and milk powder
• Collapse of the butter stocks/milk powder price ratio in 2012
• Energy and logistics costs increasing between 2.5% - 10%
Furthermore, exchange rate deterioration and associated costs with importing food products from Europe have made it necessary for us to review our pricing structure across all supply channels.
Please note we have no choice but to apply a 6% across the board price increase effective from today.
Current pricing is always available online which you can access by logging in to the new Kirkfood website.