Shelf-life extension specialist implements ‘global price adjustment’ to cope with increasing input inflation
Cost inflation caused by the Middle East conflict has prompted one of the fresh produce industry’s leading shelf-life extension specialists to increase its prices across the board.
In a statement, AgroFresh said the pricing adjustment would enable it to maintain “reliable supply” amid rising energy costs and logistical challenges, which have pushed up operating costs across the agricultural sector.
Events in the Middle East have led to a sharp rise in oil prices and caused huge disruption to shipping and logistics networks, which in turn increase the cost of energy, transportation, and raw materials.
AgroFresh said it had worked hard to absorb the majority of cost increases while maintaining reliable supply and service levels for customers.
“Moments like this test global supply chains,” said Han Kieftenbeld, CEO of AgroFresh. “Our focus is on ensuring growers, packers, and exporters can continue operating with confidence despite unprecedented volatility in energy and logistics markets.”
To continue providing dependable products and services for growers, packers, and exporters, AgroFresh said it would implement a 6 per cent global price adjustment, as well as a temporary 3 per cent energy and logistics surcharge, effective 31 March.
The company added that it would continue monitoring global market conditions and review the surcharge as energy and logistics markets evolve.
“Supporting our customers across the fresh produce sector with reliable products and service remains our highest priority during this period of global disruption,” Kieftenbeld added.
