June 23, 2008

New Zealand company warns price hikes on corn, soy shortage

Hawkins Watts Limited, an Auckland company which supplies food manufacturers in New Zealand, expects that corn and soy shortage in the US will lift its range of prices.

Paul Harrison, company spokesperson, said corn in the US is now 70 percent higher than a year ago while soy prices have also doubled.

Harrison said that this would have an immediate impact on food ingredients the company buys.

Furthermore, US supply to New Zealand is incredibly tight with some manufacturing plants under water or incapacitated by the floods.

Hawkins Watts is working to ensure the food manufacturers have at least six months supply of specialist food ingredients, Harrison added.