| « INCI TRACEABILITY | New Washes » |
WHATS HAPPENING IN THE NATURAL MARKET ???
Palm Oil as a substitute for Cocoa Butter! Damaged Coconut Oil crops! Oil Instability! Main Stream Manufacturers making a global move to natural ingredients! What does all of this mean? A serious imbalance in the supply and demand of oleochemicals and sharp market price increases that will affect all avenues of the natural product, and personal care, industry.
At Ingredients To Die For our first priority is, and has always been, to supply top quality state of the art ingredients at the lowest prices among our competitors. With that driving force in mind we have tried to weather the storm of increasing prices, that has been going on since the middle of 2010, as the shortages became apparent. We had hoped that the market would stabilize and the prices would go back down. Unfortunately, the opposite has happened and the prices are going up at, even, higher rates this year. It is with regret that we are evaluating our prices with the knowledge that they will have to be increased in order to guarantee the supply chain. We will, as always, continue to watch the prices of our competitors to ensure that our customers are still getting the best value for their, hard earned, dollar.
We are all going to see increases in anything, and everything, that is produced from coconut and / or palm oils. In today’s natural market that is just about everything so, prices will be effected across the board from fatty acids, and alcohols, to emulsifiers, oils, and bases.
We bring in materials from many different manufacturers. All of them, having their own customers, that they must answer to, who don't appreciate their price increases, just as you don't appreciate ours. They are all watching the market very closely, with the hope that it will soon stabilize, just as we are, and you will be. The analysis of the current market conditions has come back the same, from everyone, and they are all saying the same thing … the increased cost is probably going to be the reality for a long time. We hope that the situation turns around and we can all go back to normal prices. In the meantime, we wanted you to be aware that this is not a short term situation and just as they were forced to pass their increased supply costs on to us, and we on to you, it is inevitable that you increase your own prices, to your
customers, and educate them about the issues as there are several factors effecting the cost of oleochemicals, across the board, which is beyond anyone's control.
We will keep you advised as information becomes available. Rest assured that we do not take the situation lightly and we will continue to strive to be your one stop shopping source with the most competitive prices, and highest quality ingredients, so that we may continue to deliver the same perceived value that has always been at the foundation of our business model … we do understand that just as you are our customer, and we answer to you, you have your own customers that you must answer to. We apologize for that inconvenience.
We appreciate your business, and your patience, as we all weather the storm.
This entry was posted on Feb 11, 2012 at 01:48 pm by blogger and is filed under Latest News, General Discussion.