Poly Hive
Queen Bee
- Joined
- Dec 4, 2008
- Messages
- 14,094
- Reaction score
- 395
- Location
- Scottish Borders
- Hive Type
- National
- Number of Hives
- 12 and 18 Nucs
This is from an email from Cake Stuff from whom I bought my fondant last year.
"Prices
The exchange rate is terrible. Sugar is traded in Euros (and US dollars) and sugar production prices are agreed annually in October, so the timing of this and Brexit could create the perfect storm. There are other strains on prices too… the massive increase in demand as manufacturers stock up means the cost of ingredients increases (classic demand v. supply), plus the huge expense of storing stockpiled products and the actual increased cost of importing goods from Europe. Put all this together and it’s inevitable that sugar prices will increase and that increase will trickle through to all sugar-based products like sugarpaste. Cake Stuff have committed to only passing on the increase without adding any margin – in other words, if a brand of sugarpaste increases by 6p per kilo then we’ll pass on that 6p increase and not a penny more (don’t read anything into the 6p figure – we have no idea what any increase may be).
Likewise, a poor exchange rate against the US dollar means all of the products we currently import from the States are costing us a helluva lot more than they did a year ago. We’ll do everything we can to keep increases to a minimum but they’re going to happen, so it goes without saying that we’ll continue doing anything possible to ensure we always offer you the best possible price on any product."
Something to think about.
PH
"Prices
The exchange rate is terrible. Sugar is traded in Euros (and US dollars) and sugar production prices are agreed annually in October, so the timing of this and Brexit could create the perfect storm. There are other strains on prices too… the massive increase in demand as manufacturers stock up means the cost of ingredients increases (classic demand v. supply), plus the huge expense of storing stockpiled products and the actual increased cost of importing goods from Europe. Put all this together and it’s inevitable that sugar prices will increase and that increase will trickle through to all sugar-based products like sugarpaste. Cake Stuff have committed to only passing on the increase without adding any margin – in other words, if a brand of sugarpaste increases by 6p per kilo then we’ll pass on that 6p increase and not a penny more (don’t read anything into the 6p figure – we have no idea what any increase may be).
Likewise, a poor exchange rate against the US dollar means all of the products we currently import from the States are costing us a helluva lot more than they did a year ago. We’ll do everything we can to keep increases to a minimum but they’re going to happen, so it goes without saying that we’ll continue doing anything possible to ensure we always offer you the best possible price on any product."
Something to think about.
PH