The world’s largest condom manufacturer predicts increases of between 20% and 30% – and the increases could be even greater.
“The situation is definitely very fragile, prices are high… We have no other option than to pass on the costs to customers at this time.”
Goh Miah Kiat, chief executive of the world’s largest condoms, a Carex, does not hide: the company will significantly increase prices.
This decision is motivated by the impact of war in Iran in global supply chains.
The company foresees increases between 20% and 30%which could worsen if logistical and industrial disruptions persist.
“We are seeing many more condoms parked on ships that have not yet reached their destination, but which are extremely necessary,” explains Goh, in an interview with the agency.
The person in charge said that many developing countries do not have stock enough because it takes time for the products to get there.
According to the executive director, the conflict is causing a sharp increase in production costsespecially in raw materials derived from petroleum, such as synthetic rubber, nitrile, lubricants and packaging materials.
These factors, combined with the increase in the cost of maritime transportforce the company to pass on the costs to consumers.
Karex produces more than 5 billion condoms per year and supplies international brands and public health programs, including national systems and United Nations initiatives.
However, the war has caused delays significant in deliveries: Shipments to Europe and the United States are taking almost twice as long as usual, worsening shortages in some markets.
At the same time, the search global has increased, partly due to the reduction in available stocks and logistical difficulties.
This imbalance between supply and demand is putting further pressure on prices.
Furthermore, cuts in international aid — especially from the United States — are affecting access to contraception in developing countries, making the situation more worrying from a public health perspective.
Despite ensuring that it has sufficient raw materials in the short term and plans to increase production, the company recognizes that the context remains “fragile”.
