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Raw material prices instant noodles industry opportunities and threats
PAGE \* MERGEFORMAT 12
Raw material prices instant noodles industry opportunities and threats
May 28, 24-degree palm oil has exceeded 8,000 yuan, to reach inland areas (Chongqing) the price has reached 8100 yuan / ton, from the beginning of the year the price of 6,000 yuan per ton, up 2,000 yuan; the price of wheat in the first half of this year Although stabilized, but the other raw materials, such as instant noodles, the rate of increase of spice is also a great, raw material price increases caused increased the cost of instant noodles, to the entire industry to bring relatively large impact.
Instant noodle industry in 2006 annual growth is almost stagnant, in addition to the individual category, such as 1 yuan of products and simply was fairly active, the other category belong to the stable or decline in status, in particular, the price of 0.5 yuan band (low side) has been downward trend; because of the slow growth rate, the industry’s competitive situation has stabilized, share the basic seating has been scheduled, Master Kong, Hualong, white elephant, unity, Huafeng simply rely on the performance side routed to the fifth, the former 5, the Kam Fung, Sri Lanka America special, Hing Wai momentum of the growth of several enterprises that more obvious, the remainder of the sales volume of about 100 million company’s future will be very difficult.
Since November 2006 increased considerably the cost of flour and palm oil, many manufacturers are trying to raise prices or reduce the instant noodles instant noodles cost. Because the manufacturers are in the early expansion of production base, over time, causing a large number of idle production capacity, in order to consume excess capacity, so the price war in the summer and fall 2006 played abnormal hot. The Henan, Hebei, a number of small factories before the strategy is to rely on cheap low-quality access given to the high profits to enter the market. Rising costs mean less profit for the instant noodle busi
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