The Association of Bakery Ingredient Manufacturers (ABIM) has said it is not possible for its members to absorb further unprecedented price increases on raw materials.

ABIM, with members including Cereform, Dawn Foods, Puratos and Unifine Food & Bake Ingredients, said grain prices had gone up more than 50%, flour 15-20%, starches 30%, wheat starch 45%, dextrose 30%, milk powder 35-85%, lactose 100%, butter 50-80% and vegetable oil by more than 30%.

"The impact on margins of these raw material price increases is further compounded by the inflated energy costs facing the manufacturing industry," according to a position statement it put out this week.

"It is now very likely that manufacturers will have to reflect these increases in flour, vegetable oil and dairy products," said Steven Birrell on behalf of ABIM’s members.

He said ABIM would continue to work with members to reduce costs through reformulation and by maximising efficiencies, but that there are not enough cost minimisation opportunities to balance the industry’s major cost increases.