Solae Announces Global Price Increase for Soy Ingredients
Effective immediately, Solae will increase prices of its high quality soy ingredients by 7-9 percent across the globe.
Solae state that like many food companies, they have been affected by general inflationary pressure in the current economic environment, and the following significant global market dynamics affecting food manufacturers:
– Global Producer Price Index is expected to increase by about 4.7 percent in 2010.
– Producer Price Index is expected to continue to increase at an average rate of 2.7 percent globally during 2011, with some regions as high as 8-10 percent.
– With continued advances in biotechnology increasing crop production, availability of non-GM crops is shrinking and therefore non-GM premiums will continue to increase.
– Protein demand and input costs have been on steady rise fueled by economic recovery and a strong growth of the middle class in China, India and Latin America, where families are including more meat and dairy in their diets.
– While alternative dairy proteins have experienced double digit price increases over the last two years, Solae was able to absorb general inflationary pressures through productivity efforts, but with current outlooks, price increases are unavoidable.
“Solae is not immune to these economic pressures, and this new pricing is critical to our business and our ability to serve our customers,” said Torkel Rhenman, chief executive officer – Solae. “Solae continues to be in a great position to help customers through these challenges by providing innovative, economical solutions. We are committed to providing high quality, predictable soy ingredients while continuing to invest for future innovation to meet our customers’ needs.”