This is a note I got from my friend in the dairy industry. Just so you know why I had to increase my protein prices. Looks like September prices will lighten up.
This is what is happening in the industry;
The United States has always relied on supplementation of high protein powders from Europe and Oceana but we are not seeing much from them today. Here are a few reasons for this:
• Milk production in the world market has been down. Europe was off to a very slow start in their production year and New Zealand did not meet their forecasted 8-9% increase; NZ was up only 2%.
• The dollar is weak and that makes us unattractive in the world market.
• China is buying more protein than ever so we are not getting the additional powders we need to cover our domestic demands.
In addition to this, demand for Whey Proteins is continues to grow. Whey Protein has always been used in sport nutrition but is being recognized by the food industry for its health benefits. Many companies are putting it in their foods and drinks. Gatorade came out with a protein drink so did Coca Cola. The Coca Cola drink hit it big in China and they are purchasing large quantities of WPC80. Aside from these big players we can now find protein in fruit drinks, smoothies, energy drinks, and it keeps growing.
Bottom line is that there is more demand for protein and not enough supply. Earlier this year we were hoping to see a softening by June but now we are hearing maybe August or September.


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