SEOUL, March 13 (Korea Bizwire) — Food processing companies are raising prices of their products citing rising costs of raw materials, labor and other outlays, industry sources said Tuesday.
CJ Cheiljedang Corp., South Korea’s largest food and feed company, increased the prices of five kinds of Korean dumplings by an average 6.4 percent March 1.
CJ also jacked up the price of instant rice by 9 percent, that of spam by 7.3 percent and rice cakes by 9.8 percent.
Haitai Confectionery Co. reduced the size of its dumpling products by 8 percent without a price hike.
Sajo Daerim raised the prices of fish cake products by 5 to 9 percent, while Ottogi also slightly increased the price of instant rice and canned tuna.
Coca-Cola Beverage Co. raised the prices of 17 products by an average 4.8 percent last month.
“We are witnessing the price hikes due to rising costs of raw and supplementary materials, and the food processing costs,” an industry source said. “Other companies may be joining soon, although they have refrained from raising the prices due to fears over the impact.”
An official of Pulmuone Foods Co. said, “We are considering raising the prices of Korean dumpling products, although we’ve not yet set the timing and the price range.”
Dongwon F&B also said it is currently adjusting the timing and the rate of the price increase of seven fish cake products.