We started the year hitting the ground running- addressing the continuous challenges due to Covid-19 and its impacts on logistics.
In more recent weeks our efforts have shifted to address the state of the world and the ever increasing cost of raw materials – namely wheat, corn and sugarcane. Price increases have reached upwards of +30% in the past few days. This in addition to freight costs that keep going up, compared to one year ago doubling, even tripling of freight. Additionally, many distilleries run on natural gas and globally these prices are affected by the conflict, increasing exponentially. That said costs are going up dramatically across the board.
According to analysts, the Ukrainian conflict and harvest of wheat indicate that the crop faces risks of failing in addition to anticipated stress on the potato market. Moreover, Russia and Ukraine represent 29% of world export market for corn and wheat. Unfortunately this is a gloomy perspective but we are doing everything that we can to work with our customers and suppliers.
On a lighter and happier note, Sasma celebrates its 20th anniversary this year. We are settling into our new offices and our team has started to travel again. Some interesting facts from then vs. now:
We hope you enjoy our quarterly newsletter.
HANS VAN DER KLOOT
President | Netherlands
Crisis in the Ukraine
Russia’s invasion of the Ukraine and political tensions are causing sweeping volatility and surging grain prices that are impacting our business. Let us explain as there are many factors:
There are raw material shortages and price increases of wheat, corn and potato as these crops are 29% of Russia, Ukraine exports (corn and wheat). If this continues through August, it will impact the harvest and will have a huge impact on ethanol prices and availability. Secondly, demand is increasing. Third, due to the crisis there is a very high demand for natural gas and many distilleries run on natural gas, this shortage effects production. We have seen that some of our distillery partners are making their own gas from the sugars produced after the fermenting process. Overall we are dealing with unprecedented times and never before seen price increases.
Visit below links to see Wheat and Corn Pricing:
Project Zero Emissions
In our last newsletter we introduced a new project that we are launching, Project Zero Emissions. As the world and stakeholders are becoming more focused on sustainability and measuring sustainability through ESG (Environmental, Social and Governance), so is Sasma. We would like to be a leader in this arena, offering products that have a lower carbon footprint. Companies are increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities.
Why are we doing this? Businesses want to know more about the environmental performance of the products they purchase because our products impacts your footprint. We are working with a leading company that will measure our impact. First, we are assessing our environmental footprint, the first step in reducing it efficiently. We will take our products and measure all resources used during production – raw materials, resources, different types of energy, water and emissions to air land and water. The goal is to make and offer products that are more sustainable by reducing emissions during the lifecycle – more specifically reducing emissions from the different resources.
What is our goal? To offer a choice for products with neutral carbon emissions vs. products that aren’t. We are starting with our Wheat and Sugarcane products and hope to have alternative products to offer our clients within the coming months. We will be rolling out this project to more products in the future.
This year we are pleased to share that Sasma is sponsoring two different charities. The Prinses Máxima Centrum Foundation for pediatric oncology and Doctors without Borders. We made charitable donations to support both organizations.
The mission of the Princes Máxima Centrum is to cure every child with cancer, with an optimal quality of life. We felt this was a good match being that it is a medical research organization and making an impact on the wellbeing and development of children. We are a family run business and supporting families runs in our company DNA.
Additionally, we are supporting humanitarian efforts in the Ukraine through Doctors Without Borders, an international humanitarian group dedicated to providing medical care to people in distress.
To learn more about each organization, please visit:
Organic Alcohol & Blended Whisky Available
We currently have inventory that’s ready to ship.
Contact us to learn more about availability and packaging options.
We currently have grain whisky and blended whisky from different ages that are ready to ship
We are looking forward to attending the Pro Wein fair in person this year. The fair will include businesses from over 48 countries. Our Sales Managers will be attending Pro Wein as visitors this year.
Please call or email us to schedule a meeting firstname.lastname@example.org.