(Yicai Global) Nov. 3 -- Jiangsu Hengshun Vinegar Industry, Haixin Foods and Fujian Anjoy Foods are among the Chinese food producers hiking prices by as much as 15 percent to cover surging raw material prices and big jumps in the cost of labor, electricity and transport.

Hengshun Vinegar, which makes the staple ingredient Zhenjiang vinegar used in Chinese cuisine, will raise the price of some products by as much as 15 percent from Nov. 20, the Zhenjiang, southeastern Jiangsu province-based company said yesterday. The price adjustment is likely to impact its competitiveness and will not necessarily lead to profit growth, it added.

Frozen food makers Haixin and Anjoy both said they will increase prices by as much as 10 percent from Nov. 1. Yeast maker Angel Yeast has upped its prices twice since September. Condiment manufacturers Foshan Haitian Flavoring and Food and Lee Kum Kee as well as snack food firm Qiaqia Food have all announced price rises in the past month.

China’s consumer price index, a main gauge of consumer inflation, jumped 0.7 percent in September from a year ago, while the producer price index, a measure of industrial profitability, climbed 10.7 percent on surging commodity prices. The big gap between the two indexes means that the high cost of raw materials will drive up food prices, according to a Ping An Securities Group.

The profit margin of most dairy product, condiment and snack food makers shrank in the third quarter from the previous quarter because of rising costs, Dongxing Securities said. As a result, more food producers are likely to increase their prices.

Hengshun Vinegar’s share price [SHA:600305] gained 1.62 percent to trade at CNY16.35 (USD2.56) at 1:40 p.m. China time today. Earlier in the day it advanced 5.5 percent to reach CNY16.98. Haixin Foods’ stock price [SHE:002702] was trading up 2.59 percent at CNY5.95 (USD0.93). Earlier in the day it had surged 10 percent to hit CNY6.38.

Editor: Kim Taylor