Agfa to announce substantial price rises for plate and film

The price hike is the first by Agfa in the region since 2001 and is driven by dramatic increases in the price of raw materials, notably aluminium for plates, which has risen by 34 per cent in three months. The local market was shielded from international price rises mostly because of a favourable exchange rate, while European and USA Agfa customers faced price rises in the latter part of 2005.

According to John Shore, sales director of Agfa Oceania, there is no guarantee the current round of increases will be the last. “We have done a lot to contain costs in recent years but we are no longer able to absorb increases like this. This is not an easy exercise but we have no choice,” he said.

“No one can say where the prices of raw materials will end up. This increase is to cover costs we have already incurred.”

Agfa’s decision not to increase prices across the board, a first for the company, reflects the confused pricing levels that have come about by massive price erosion, especially for analogue plates over the years. The prevailing orthodoxy of driving for market share has resulted in many customers paying below par. With this price shift the company is determined to introduce price/volume relativity to ensure comparative users are getting similar rates.

The local company is waiting on cost ratios from corporate headquarters in Belgium before finalising the different price rises, which are expected to be in place by mid-March.

According to Shore, the response from larger printing customers is one of understanding and recognition. “I have been travelling around Australia meeting with customers and while I wouldn’t say they’re happy about it, generally they accept the need for higher prices,” he said.

The Agfa price rise comes on the heels of an across the board rise by Kodak earlier this year. Kodak This leaves FujiFilm as the only major player not to announce increases in plate and film prices.