Infant Formula Price

Composition

Composition, or in other words recipe or set of ingredients, influences the cost of infant formula production the most. By composition, we mean the specific set of ingredients used to produce any particular infant formula. The ingredients are chosen to achieve a specific nutritional profile. The better the nutritional profile, the richer in functional ingredients, the higher the production cost.

Quality of the Ingredients

Another important factor that influences the cost of manufacturing is the quality of the ingredients used. Even seemingly identical ingredients can have completely different prices from different suppliers. Manufacturers have plenty of choices when it comes to selecting ingredients for production and are fully responsible for making the right choice. Often there is an opportunity and temptation to use lower-priced ingredients which, at first glance, look fine. However, when analyzed in detail, it turns out that they might not meet all the parameters in compliance with the regulations. This particularly applies to parameters that are rarely measured and of which the majority of consumers are not even aware. An example of such a parameter might be the relatively rarely tested chlorates, commonly found in milk at levels much exceeding the maximum limit set for baby food in the European Union.

Packaging

Infant formula can be packaged in many different ways. Different brands use different packaging options such as metal cans, bag-in-the-box, or composite packaging. At Geo-Poland, we believe in the most traditional, most ecologically friendly, and the most durable packaging type - metal cans. While often being more expensive than, for example, bag-in-the-box solutions, metal cans offer significant advantages which should always be taken into account.

Another important factor to consider is the actual quality of the metal cans used. In pace with advancements in industrial packaging equipment, many manufacturers around the world have decided to use metal cans with much thinner walls to achieve savings and higher profits. At Geo-Poland, we still use metal cans with thick walls that are much more durable during transportation and handling, minimizing physical damage. This is beneficial to our customers as it significantly lowers their losses related to damaged product pieces during distribution logistics operations.

The metal cans must always be placed in bulk cartons (carton boxes). Similarly, these boxes can be made of thin or thick carton - the better the quality of the material, the better for the safety of the cans inside during warehouse operations and product transportation. At Geo-Poland, we use very thick cartons which have proven over the years to be a very good solution in even the most demanding climate zones.

Finally, the carton boxes can be blank or printed with custom texts or patterns. Customization of the cartons increases their cost, but it is often a good idea from a marketing and branding perspective.

Quality Control

The required procedures for quality control of infant formula may vary depending on multiple factors. The set of parameters to be tested during and after the completion of production may vary depending on the actual recipe being produced and the ingredients used. Different countries may require different parameters to be tested in each batch of products. Finally, the customers may have different and sometimes very specific requirements when it comes to confirming the quality of the formulas being delivered.

The more parameters tested during and after the production of a particular batch, the higher the production cost of the formula. Also, testing different parameters requires different equipment, methods, and resources. Therefore, some parameters may be more expensive to test than others.

At Geo-Poland, we have well-defined quality control procedures for each product and market. Over the years, we have learned how to satisfy the regulatory requirements in many countries around the world. We will be able to guide you through this process and offer the most cost-efficient quality control procedures, ensuring that the products we deliver are always safe and according to the well-defined specification.

Quantity

As with most products, the cost of infant formula depends on the quantity being produced. The batch size as well as overall annual volume can influence the unit cost of manufacturing. The degree of influence will depend on the specific composition of the formula, chosen packaging, or necessary quality control procedures.

Payment Terms

In international trade, different methods of payment are available and commonly used. Some of the payment methods are more expensive than others. For example, in the case of some payment methods, financial institutions charge certain fees for their services, making the overall product price higher.

Delivery Terms

Depending on customers' requirements, we can offer different methods of delivery. Usually, we can deliver to any seaport worldwide or arrange transportation via trucks or trains (in Europe or parts of Asia). The transportation costs to the desired location using the desired transportation mode are always different and are checked by us in detail before making any offer. The transportation costs may also change over time; the freight charges vary. We always offer the best possible delivery cost we can find, and it is included in the product prices.

Additionally, sometimes it is necessary or advisable to insure the shipment. In such situations, the cost of insurance also affects the prices.

Order Time

Finally, the cost of infant formula depends on the time it is produced. Many ingredients used for the production of infant formula vary in prices a lot. Their costs can change very frequently. Additionally, energy prices can change, which also affects the costs of manufacturing (the spray drying process is energy-intensive).