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Cream Prices and Nelson's Ice Cream

Category: GeneralPublished on 2014 Nov, 24
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Before becoming involved in an ice cream manufacturing business, I had little reason to pay attention to, much less to follow the price of cream and butter. My limited understanding was that while there were fluctuations in price, there was generally a range that held pretty true year in and year out.


 

This pattern was violently changed in late summer 2014, at the peak of the season when the price of cream escalated beyond the historical norm:

http://www.timesunion.com/business/article/Butter-prices-soar-as-demand-rises-5768227.php

We’re talking increases in the 50% range for the primary ingredient for making ice cream. This hits Nelson’s more than most because our Dutch Farms contains a higher degree of butterfat and milk solids than most of our competition…the higher the butterfat content the more cream used. And while cream prices have settled into a normal pattern, it is tough to predict what will happen in 2015.

 

When prices jump at the end of the ice cream season there is little Nelson’s or any ice cream manufacturer can to dot offset the increases in the cost of raw materials. We hear that some of our competitors are raising prices, and we may be forced to adjust our prices as well.

 

What we will not do is sacrifice the quality of the ingredients used. You can depend on Nelson’s Ice Cream to continue to make hand packed, full 64oz half gallons, of super premium ice cream using the highest quality ingredients.

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