According to Vista Outdoor, “an anticipated global shortage of gunpowder” has created a need for increased ammunition prices. The Minnesota-based firm’s corporate overview boasts “41 renowned brands that design, manufacture, and market sporting and outdoor products.” In December, customers received a letter stating that the new price hikes would be across the board, beginning on January 1.
‘Anticipated Global Shortage’
“Due to world events, our suppliers have notified us of unprecedented demand for and an anticipated global shortage of gunpowder, and thus has increased our prices substantially,” wrote Vice President of Sales and Sporting Products Brett Nelson. “We must therefore raise our pricing to help offset those increases.”
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Limited Availability
Moreover, handguns, 22 long rifles, and 22 short cartridges will increase between one and five percent, with primers increasing five percent. Alliant Powder received the toughest markup, with a 2024 price 10% higher than before. The letter cites “limited availability” as the culprit for this sudden leap.
Worse news was yet to come for customers, with all “existing and future orders” affected by the new prices. Unless customers canceled their existing orders, they will pay the new prices for any orders shipped from January 1. Nelson concluded the letter by thanking his customers for their support.
A Steady Rise in Global Prices
Although Nelson didn’t mention any conflicts specifically, the Ukrainian and Israel-Palestine conflicts have pushed demand for ammunition higher than ever. The need for gunpowder follows a steady rise in global prices over the decades, with a huge spike in demand pushing prices higher following the global pandemic supply chain disruption of 2021.
Vista Outdoor pledged a one-million-round donation to President Volodymyr Zelensky in 2022. “The war in Ukraine has displaced millions of citizens and exposed average people to the horrors of war,” wrote President of Remington, CCI, Speer, and Federal Ammunition, Jason Vanderbrink. “Supporting the relief effort is a crucial element of the global response and we are proud to do our part.”
A Longstanding Relationship
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In the same year, Euronews reported that the European Union (EU) had failed to deliver on its ammunition pledge for Kyiv, reaching only 30% of the promised one million rounds. Following a slower-than-expected turnaround, German Minister of Defense Boris Pistorius said, “There is a question of whether one million was ever realistic. One million is easy to decide, and the money is there, but the production has to be there.”
Stockpiles Are Perilously Low
However, Reuters reported near the beginning of 2023 that NATO was forced to raise its munitions stockpile following an ammunition audit. In their report, an unnamed diplomat said that Europe would “run out of ammunition in days” to fight Russia in a direct conflict.
It remains to be seen whether this price rise is permanent. However, with a potential crisis brewing in the Middle East, the future for amateur weapons owners and retailers will only become more expensive.
* Original Article:
https://wealthofgeeks.com/cost-of-ammunition-to-rise/