MEMPHIS, TENN. — Lallemand/American Yeast is increasing its prices on yeast and other baking ingredients in the United States and Canada, effective immediately for all new customers and effective Dec. 29 or as existing contracts expire for all existing customers.
The company said price increases will vary depending on product, geographic market, brackets and terms.
Liquid yeast prices will increase by a minimum of 2c a lb on an “as is” basis, compressed yeast prices by a minimum of 4c a lb and all dried yeasts (instant or inactive yeasts) by at least 8c a lb.
Order minimums, lead times and fuel surcharges also will be reviewed at the same time to better reflect changing cost factors, the company said.
“As most bakers probably know, the short corn crop this year has caused corn syrups and other raw materials used in yeast production, such as molasses, ammonia and phosphates to increase and likely remain costly for all of 2013,” the company said. “Other raw materials such as ammonia and phosphoric acid remain expensive as they are used as fertilizers. So long as crop prices remain high, the agricultural demand for fertilizers will also remain high. Transportation costs have been driven higher by fuel costs and regulatory restrictions that increase driver and equipment costs.”Gary Edwards, president of Lallemand/American Yeast, added, “While we strive to improve efficiencies and give our customers the best value, this is a time when we cannot continue alone to absorb the increased costs.”