HONG KONG: Soaring food costs have eaten into the profits of mooncake makers ahead of this year’s Mid-Autumn Festival, offsetting a renewed appetite for the distinctively Chinese sweetmeat.

Mooncakes – heavy blocks of sticky lotus seed or red bean paste with two or four whole egg yolks, encased in a thin pastry embossed with Chinese characters and motifs – have enjoyed a comeback among both old and young in recent years, Hong Kong bakers said.

But the increased demand for the treat, traditionally given as presents to mark the autumn moon, has not translated into profits for the bakeries because of the global rise in the cost of raw ingredients.

Wing Wah, the oldest mooncake manufacturer in Hong Kong, said the cost of peanut oil had jumped 80 per cent because of the surge in peanut prices in China.

Flour costs 10 per cent more than last year while egg yolks – embedded whole in the filling to symbolise the phases of the moon – are up 20 per cent.

The more costly ingredients have contributed to a 26 per cent increase in overall production costs, said Lee Ying-kuen, spokesman for the brand.

“We had no choice but to increase the price as the ingredients have become so expensive now,” Lee told AFP, adding that the company has capped its retail price rises at five per cent.

“We don’t want to drive our long-time customers away by matching the prices with the cost of production. We’d rather live with smaller profits,” he said.

A box of four double-yoke Wing Wah mooncakes costs 278 Hong Kong dollars (35.64 US).

Mid-Autumn Festival, the second most important on the lunar calendar after Chinese New Year, is based on the legend of Chang E, the mythical moon fairy who lived in a crystal palace and came out only once a year to dance on the moon’s shadowed surface.The most famous story linked to mooncakes is that they were used to conceal secret messages sent among Chinese revolutionaries who plotted the overthrow of the Mongol invaders in the 14th century.

These days, families gather together for large meals, traditionally on the evening of the new moon which this year falls on September 14, with the mooncakes central to the celebrations.

Apart from the lotus-seed Cantonese version, mooncakes vary in style across China. Those from Chaozhou in eastern Guangdong province, for instance, contain sweet yam paste.

But as shoppers have become more health conscious, mooncakes have been criticised for their high fat and cholesterol content.

The trend has led to the emergence of many lighter and healthier versions, using ice-cream, fruit and nuts, but also creations with ingredients regarded as delicacies by southern Chinese, such as abalone and sharks’ fin, as well as caviar and truffles.“To stay ahead of the competition, Hong Kong bakeries are trying all means to improve the quality, packaging and pricing of their products,” said Wing Wah’s Lee.

“People are coming back because mooncakes are no longer just a calorie-laden confection.”

But the heavy, Cantonese-style mooncakes were also regaining popularity.

“I have noticed that many OLs (Office Ladies) in their 20s are buying our traditional mooncakes this year,” said Phoebe Leung, spokeswoman for Kee Wah Bakery.

In addition to the growth in demand from Hong Kong people, Lee said many people from China, where food safety has been a burning issue for the past year, are shunning the mooncakes at home and buying only famous brands from Hong Kong where quality and hygiene controls are more stringent.

“Lots of mainland (Chinese) tourists come to our shops to buy in bulk.

Their purchasing power remains very strong despite inflation,” Lee said.—AFP