Nowadays in Vietnam, the shocking increase in world sugar prices has further impacted confectionery and bevera...
Nowadays in Vietnam, the shocking increase in world sugar prices has further impacted confectionery and beverage manufacturing businesses.
Representatives of many coal businesses said that from the beginning of the year until now, the input prices of many products have increased.
The high prices of sugar and many other raw materials have caused difficulties for confectionery businesses. (Illustrative image: Investment Newspaper)
Recently, the most expensive sugar price in 10 years has been a blow, making them even more difficult, especially when pushing Strong production and sales of confectionery during the Mid-Autumn Festival and at the end of the year.
A representative of the confectionery company Bibica spoke to VTC News explaining his concern about the external factors that strongly influence the situation: price fluctuations, exchange rates, supply, freight... unpredictable fluctuations. Indeed, all these changes have an impact on the production of confectionery (input of raw materials and costs) but also on the company's revenues.
Otherwise, sugar has an important place in the beverage market: even if companies decide to use another flavor to replace sugar, it accounts for about 15-18% of the cost of soft drinks.
Unfortunately, the global economic downturn has impacted all businesses with the decline in demand for products: then, at the end of the year, sugar prices unfortunately rose dramatically.
In addition, there are recycling costs for recycling packaging, plastic bottles, aluminum cans, and cardboard shells... very high. The imposition of an excise tax on sugar-sweetened soft drinks has also had an impact on the beverage industry and related industries such as sugarcane, retail, packaging, etc.
Recently, global sugar prices hit a 10-year high following the announcement that India plans to restrict sugar exports in the 2023-2024 crop year. At its peak, world raw sugar prices stood at 27.3 cents US per pound.
Overall, global sugar stocks are expected to decline by 2022% in 2023-13 compared to the previous year, putting pressure on sugar anchor prices to high levels.
Indeed, this context has caused sugar prices in Vietnam to start rising with the world. On August 8, domestic sugar prices reached their highest level in recent years.
Faced with this context, the Vietnam Sugar Association recently recommended that its producer members participate in stabilization by bringing sugar to the market according to usage requirements and keeping the current sugar selling price at a reasonable and guaranteed price. The goal is to harmonize the interests of relevant parties.
Recommendation from the Vietnam Sugarcane Association: "Don't let sugar prices rise further to protect your interests and those of consumers. Do not practice or encourage acts of commodity picking, or price pressure.
In cases of non-compliance with the above recommendations, the Vietnam Sugar Association will be forced to take countermeasures, including promptly reporting to the Ministry of Agriculture and Rural Development and state management agencies. countries to propose additional tariff quotas in 2023", the document of the Vietnam Sugarcane Association stated.
According to Investment Newspaper.