The price of MSG in many enterprises has risen

Since the beginning of this year, the price of monosodium glutamate has shown a "V"-shaped trend, falling sharply in the first half of the year and rising sharply in the second half of the year

Demand remains stable and growing

What is the current situation and prospect of MSG industry? From the perspective of production, China is the world's largest producer of monosodium glutamate, accounting for about 75% of the world's total output.

From the perspective of consumption, China is also the world's largest consumer of MSG, accounting for about 70% of the global total

Industry insiders said that as a necessities, condiments have obvious market demand and strong anti-cyclical properties.

Although household consumption of monosodium glutamate has been declining year by year with the rise of the concept of health, in terms of hidden consumption, the monosodium glutamate market is very active

First of all, it is the demand of the catering industry

Second, is the demand for industrial food processing

From the consumption structure of monosodium glutamate, it can be seen that the two major demands of industrial food processing and seasoning in the catering industry occupy the absolute position of monosodium glutamate consumption, and still maintain a relatively stable growth

Divergence in business performance

Since November, the price of monosodium glutamate has risen by more than 1,000 yuan per ton.

Insufficient short-term supply is the main reason for the rise in MSG prices

The shortage of monosodium glutamate market supply may continue

The top MSG companies in the industry took the lead in raising prices

It is worth noting that, currently selling 1 ton of monosodium glutamate, upstream monosodium glutamate enterprises can earn 300 yuan more than in previous years

　　Although monosodium glutamate enterprises have successively adjusted their prices, their performance has been differentiated

　　Another monosodium glutamate giant Lotus Health's third quarterly report shows that in the third quarter of this year, the net profit attributable to the mother fell by 61.

　　The relevant staff of Linghua Group Hohhot MSG Factory admitted that according to the current MSG price, the company has just started to make a profit and has been losing money before

Condiment "price surge" may continue

　　After the upstream monosodium glutamate enterprises pass on the cost pressure by way of price increase, the profits of the downstream enterprises will face "shrinking"
.
A buyer of a food factory in Shandong said frankly that although the cost of raw material procurement has increased, due to the impact of relevant market regulations, the price of end products cannot be adjusted in the same proportion, and the losses of downstream enterprises are increasing
.

　　The prices of end products such as Haitian Flavor Industry, Zhongju High-tech, and Jiajia Food have publicly "raised a round" before the price of MSG rose to a new high
.
This also means that if the above-mentioned companies purchase raw materials at the current price of MSG, the cost pressure that has just been eased by the price increase may be aggravated again
.
The increase in the price of MSG may further extend the current "price surge" in the condiment market
.
The relevant person in charge of Fuling mustard has said that if the price of raw materials rises further, it does not rule out the possibility of another price increase for related products
.

　　"As the price of monosodium glutamate hit a new high in recent years, there is a clear wait-and-see mood in the downstream.
Most of the circulation merchants have suspended chasing the price, and large-scale industrial users also choose to make up orders
.
Not strong
.
" Chen Yingying said that MSG currently has a certain proportion in the food industry, especially in condiments.
With the high price increase of monosodium glutamate this year, the downstream condiment industry has to transfer cost pressure to the terminal by raising product prices.

.

(Comprehensive arrangement by Gao Jiaodi)

　　"China Food News" (December 09, 2021 Edition 04)

(Editor-in-charge: Gao Jiaodi)