The latest company to raise prices is Japanese instant noodle maker Nissin Foods, producer of the famous “Cup Noodle” brand.
The prices of the company’s products sold in China are set to increase on March 1, 2022, marking the first time in 11 years that the company has raised prices. They cite “cost pressure caused by the unstable supply of raw materials and soaring prices, especially in the past year”.
Food inflation continues to be a major theme for consumers in China. Over the past months, several major brands have announced price increases due to rising labor, materials, electricity, and transportation costs.
Wheat prices in particular have spiked in China due to stronger wheat demand in animal feed as a result of high corn prices, and a difficult planting season for winter wheat.
Strong wheat prices are now leading to food inflation of consumer staple products such as instant noodles. Hence, Sitonia Consulting is bullish on the prospects of Chinese wheat imports over the next year.
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