Rising cost of raw materials squeezes food producers

Higher input costs affect prices, reduce demand and eat into market share

12 September 2021 - 10:49 By Thabiso Mochiko

Food producers are bracing themselves for more tough trading as prices of raw materials such as maize, steel, palm oil and glucose remain elevated - and for consumers this means further price hikes are on the cards.

RCL Foods, the maker of 5 Star Maize Meal, Ouma Rusks, Selati sugar, Nola and Simply Chicken; AVI, which owns brands such as Five Roses and Bakers biscuits; and Libstar, which makes Lancewood and Denny products, this week all bemoaned the increases in the cost of raw materials...

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