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Soaring commodity costs to hit all sectors

Posted on 31 January 2013

Rising commodity costs this year will leave drinks companies .Producers will continue to face commodity price pressures in 2013. Rabobank’s Global Beverage Outlook study warns that companies must ensure “security of supply” and develop an integrated supply chain to guard against price fluctuations. Manufacturers can no longer afford to focus solely on lowest price when buying commodities, the report said.
As Europe wrestles with economic austerity measures and the US deals with a growing debt burden, the global beverage industry will feel the impact of weaker consumer demand from developed markets and slower growth in emerging markets during 2013. Adding to this global economic headwind is price and supply volatility for key beverage related commodities such as sugar, corn and barley. While prices were generally lower in 2012 than the prior year, the outlook for key commodities in 2013 is still a major concern for all beverage companies………………………………………..Full Article: Source


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