Instant noodle prices up as high as 40%
Updated: 2007-07-24 16:30
 A woman chooses instant noodles in a supermarket in Zhengzhou, Henan Province. Instant noodles at middle and lower prices, lead by Hualong and Baixiang groups, will soar beginning July 26. [newsphoto] |
Sources with the Chinese branch of the World Instant Noodles Association said the instant noodles at middle and lower prices, lead by Hualong and Baixiang groups, will soar beginning July 26, following an earlier price hike in high-priced instant noodles in June.
The middle and lower price range noodles dominate with a 60 percent market share.
The 0.5 yuan (US$0.06) and 0.6 yuan noodles will be increased to 0.7 and 0.8 yuan, and the products at 1 yuan will be increased to 1.2 yuan, with an average growth rate of 20 percent.
In June, the instant noodles at over 1.5 yuan saw an average increase of 0.2 yuan.
Fan Xianguo, board chairman of Jinmailang Food Co Ltd, said its material cost has appreciated 19.5 percent compared with the same period last year
Flour prices also climbed to 2.16 yuan per kilogram from 2.04 yuan last year. Other materials such as pepper are also appreciating.
The cost of instant noodles rose by 13 percent due to material price hikes, and as high as 20 percent for some firms.
Meng Suhe, leader of the Chinese branch of the World Instant Noodles Association, said the firms producing lower prices are losing, big, middle, and small sized firms alike.
China’s total production capacity of instant noodles last year was 46 billion packages, accounting for 51 percent in global production, and the sales volume was 30 billion yuan.
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