The company, a business of IFF’s Health & Biosciences division, said the move is effective immediately or as contracts allow.
The price hike is due to unprecedented cost escalation on raw materials, packaging, and logistics.
“We will increase prices by up to 10%, depending on the product grade and geography.”
Its animal nutrition business had historically been able to offset increases in input costs through efficiency gains. That is no longer the case, it said.
“Unfortunately, the COVID-19 pandemic has had a sustained and lasting unfavorable impact on input costs around the world. In the case of transportation, for example, our industry is facing dramatic price increases for air and ocean freight. At the same time, prices of key raw materials and packaging have reached historic highs. Regrettably, we cannot continue to absorb these additional costs and maintain our pace of product supply in the medium to long term.
“By taking this difficult - yet necessary - decision of introducing price increases now, we provide ability for our customers to plan while allowing us to maintain our position as trusted partner and supplier of innovative feed additives and services that continue to deliver value, efficiency and that optimize grower productivity,” said Pauel Fokin, vice president of Danisco Animal Nutrition, IFF.
Read our report on the dysfunctional freight markets and energy crunch, which are some of the factors behind the hike in raw material costs globally.
Danisco Animal Nutrition announced it was merging with IFF in December 2019. Its feed additives portfolio comprises feed enzymes, betaine, phytogenics and probiotics
