Dramatic increase in costs for Cholesterol!
10/15/2009
Wool grease is the major raw material ingredient which is used in the manufacture of Cholesterol and thus heavily determines the cost. There has been a significant increase in the price of wool grease over the past year. This factor has impacted the profitability of our Cholesterol business and thus we are being forced to increase our prices to the market.
There are a number of reasons for the sharp fall in the amount of wool grease which is available to the market and which has resulted in a significant increase in raw materials prices. This decrease in availability is caused by the increasing demand of Chinese companies for wool grease for the manufacture of Cholesterol for use in the production of Vitamins. Another factor is the decreasing usage of wool in the clothing industry which has been replaced by cotton; has also resulted in less wool grease being made for the market. The number of sheep maintained has also decreased and this is another contributory factor.
We will continue to follow closely the development of raw material prices and may adjust prices upwards or downwards accordingly.
