Food producers squeezed as input costs gnaw at margins

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Food producers squeezed as input costs gnaw at margins
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Higher raw material costs due to Russia’s invasion of Ukraine puts pricing under pressure

Food producers face the risks of margin erosion because of higher raw material packaging and conversion costs, revealing the tangible effect of Russia’s invasion of Ukraine, which has driven commodity prices to historic highs.

Food producers require an estimated 9% price increases just to offset the current spot input costs, said John Morris, ‎SA investment strategist at Bank of America Securities during a media briefing that reflected on its 23rd annual investor conference held in late March...

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