A major fire at one of the world’s primary suppliers of Vitamins A and E will put pressure on supplies and result in higher prices next year, a feed company has warned.
The fire at BASF’s plant on October 31 forced it claim force majeure – unforeseen circumstances preventing it from fulfilling its contract – for vitamin A and E products.
In combination with restricted supply from China, this has created ‘unprecedented market conditions’ in terms of both supply and price volatility, Trouw Nutrition has told its customers.
It is confident it will be able to maintain the supplies for regular forecasted business until the end of 2017.
However, it added: “For the start of 2018 the situation is extremely uncertain. We hope to be able to secure a supply of both Vitamins A and E for Q1 2018. However, prices of these raw materials look certain to be considerably higher and dependent on the inclusion levels will lead to higher product prices. We are currently looking at strategies around partial replacement using other products or options to reduce the impact.”
Due to the uncertainty, the company said it would not be able to accept additional volume orders over and above average levels.
In addition, all orders received before the end of the year for delivery from January 1, 2018, will only be accepted at the new prices effective from the New Year.
- The main image shows BASF’s headquarters in Germany