Snacks Price Increase 2022
by Jes @SnackFirst on Jan 10, 2022
Healthy snacks like nuts and seeds have experienced bumper crop and harvest in 2021, causing record growth and output. In addition to more plantations, advanced technology and good weather conditions have helped to boost the crops.
Due to the trade wars between China and the US, China has reduced its reliance on the nuts from the US and they have started their own nuts plantation. The once top importer of nuts have moved towards self sufficiency and less reliance on imports. This extra supply has caused prices of nuts to drop, which is great news for everyone!
Alas, with good news come bad news.
The pandemic has fuelled higher growth for purchases and the port is struggling to match this surge in demand. Millions of tonnes of shipment are hovering in ports globally waiting for be unloaded. There are shipment delays everywhere, surely more ships, more trucks, more warehouses are needed. Some states in the US has moved to lengthen their operational hours, and that will help to ease slightly.
Due to the restriction in travel and immigration, companies are also struggling to hire but there are more work to be done in the ports. This reduced efficiency have created a backlog that will take some time to clear.
To put it simply, supply chain is in a mess.
Importers have to increase price to cope with the rising cost and lesser inventory. The increase in supply chain has more than offset the lower nut prices, resulting in a definite price increase and inflation for 2022. The US inflation rate is at an all time 40-years high. Experts have warned that this situation may continue till next year, with the surge of Omicron cases and the continued pandemic effect.
This is not just for healthy snacks in Singapore, or even nuts only. This is for every single consumer products and imported products and raw materials. This is literally everything for Singapore, which means you will see a price increase for most products this year.
Our macadamias have started the ball rolling with a 15% increase.
Order fast, order early, before the next shipment arrives at a higher price. Happy new year 2022!