Why is coconut milk nutrition so low?
Jicama Nutrition says it is in dire straits and will struggle to stay afloat as the price of coconut milk has plummeted.
The cereal-based food giant says the price is now lower than it cost to make a loaf of bread.
In the same period, it has lost a fifth of its business.
Its main feed, Jicamos, is the second-lowest-priced cereal product, in the market of $2.50 per 100g.
Jicamons feed has also been severely affected by the price collapse.
Its production capacity has been cut from 600,000 tonnes to 450,000.
The company said it is struggling to find a way to keep its supply chains running, adding that it will be “extremely difficult” to keep up production of the cereals products.
The loss of the supply of the cereal products is expected to add to pressure on Jicamas parent, PepsiCo, as it attempts to stay ahead of a falling global market.
Josie Williams, a nutritionist at the Institute of Food Research in New South Wales, said the food industry has become so dependent on imported commodities, including cereal, that consumers will become increasingly cautious about buying food from the food service sector.
She said while the cereal industry has been successful in providing a reliable source of nutrition, the current food situation was not conducive for food manufacturers to be able to maintain production of these products.
“You don’t have that flexibility in terms of being able to have food supply, especially for a commodity that is so low in price,” Ms Williams said.
“That’s not necessarily a good thing.
It means there’s less of an incentive for people to buy and consume food.”
Jicamas is also in the midst of a recall for its coconut milk products.
The company said its products were not contaminated by the bacteria known as Listeria monocytogenes.
In a statement, Pepsi Co said: “The safety of the Coca-Cola product is paramount.
We are actively investigating this recall.
The safety and quality of our products is our highest priority.”
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