When is the right time to buy?
Purchasing ingredients requires insight
Ingredients such as starches, proteins, fibres and dried fruit are affected by seasons, production and market conditions. The right time to buy depends not only on price developments, but also on availability, quality and supply stability.
Our experts provide ongoing insight into how supply and demand are developing, and what this means for ingredient selection and purchasing. With market data and experience, we provide ongoing advice on when it is time to act and which factors should be included in the decision-making process.
Factors influencing the decision
Several factors influence purchasing:
- Harvest and production
Some ingredients depend on harvest yields and production capacity. For example, dairy products such as skimmed milk powder can be affected by seasonal fluctuations in milk production, while vegetable raw materials depend on crop growth conditions.
- Supply chain and raw material availability
Logistics and production challenges can affect the availability of certain ingredients. When purchasing, it is important to have insight into how the market is developing and whether delays or changes in delivery options may arise.
- Legislation and regulation
Changes in regulations can affect the availability of ingredients. Our experts, together with our partner network, are up to date on the market and can advise on how legislation affects purchasing options.
- Earlier this year, we saw how drought in Southern Europe put pressure on the supply of certain plant-based ingredients. For a customer with a stable demand, it was crucial that we secured volumes well in advance – otherwise, the consequence would have been production losses.
Mikael R. Lauritzen, Product Manager, Procudan
The right agreement depends on the market
It is not only your needs that should determine which purchasing agreement is right for you. Market movements also play a crucial role.
When we advise on agreement types, we take both your business and the current market situation into account. In a stable period, a long-term agreement can create peace of mind and secure supply. However, when the market is moving quickly or ingredients are affected by harvest, weather or demand, it can be advantageous to remain flexible and make agreements for shorter periods.
There is no one right model – it is about choosing the solution that makes sense right now. This requires insight and timing.
We are always available to help you assess which solution is best suited to the situation at hand.
Read also: When timing is crucial for your production
Gain knowledge and use it when it matters
It is through our ongoing dialogue that knowledge becomes concrete and relevant.
We draw on knowledge from a broad network of specialists among our partners. We often reach out to several networks that have their finger on the pulse of the market and obtain different assessments from specialists who work on the front line of the raw materials market every day. This gives us a qualified basis for decision-making, which we pass on to you.
In dialogue with you, we assess together how this knowledge can best be translated into action. This may involve recommending that you act now, wait or choose a different type of agreement – depending on market developments and your current needs.
If you would like to keep track of developments in the ingredient markets yourself, you can also sign up for our newsletter. Here, we compile the most important trends and insights in a brief overview every month, sent directly to your inbox.
We follow the market closely so that you can make decisions with clarity and timeliness.
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