Price revision of processed oil products

— For shipments on and after March 1—

Kaneka Corporation
February 3, 2021
Kaneka Corporation (Headquarters: Minato-ku, Tokyo; President: Minoru Tanaka) will revise the sales prices of processed oil products of Foods & Agris Solutions Vehicle for shipments on and after March 1 as specified below.

 Item  Revised price
 Shortening products  28 JPY / kilogram and over
 Margarine products  25 JPY / kilogram and over
 Fast spread and butter cream products  19 JPY / kilogram and over

Since last year, the global markets for grain and edible fat and oil have seen a remarkable decrease in production volume in each of the major production regions, due to abnormal weather, such as the La Nina phenomenon, and labor shortages caused by the Covid-19 pandemic.
On the other hand, increased strong demand in China, where economic recovery was achieved early last year and speculation, has tightened the balance of supply and demand to an unprecedented extent, and the prices of raw oil and fat materials have suddenly jumped. In addition, there has been a rise in fuel expenses, such as those used for production utilities, as well as costs for packing and distribution, putting pressure on business revenues.
 
Kaneka endeavored to improve business revenue through initiatives such as constricting costs.  However, having reached the limits of what the company can do, Kaneka has determined that these price revisions are unavoidable for the sake of steady product supply from here on.