Solae Increases Prices for Soy Protein Ingredients

Given Solae's broad range of products, price increases may reach up to 30 percent globally and will be relative to specific regional market conditions. Price increases do not include changes in identity-preserved premiums, and are subject to contracts.

07/04/08 Solae LLC has announced that global prices for its soy protein ingredients will increase effective immediately. Given Solae's broad range of products, price increases may reach up to 30 percent globally and will be relative to specific regional market conditions. Price increases do not include changes in identity-preserved premiums, and are subject to contracts.

"Market pressures are continuing to challenge the food industry, and Solae is not immune to those pressures," said Michele Fite, Solae Vice President, Global Strategy and Marketing. "The landscapes of the agricultural and food industries and economies have changed. In an era of biofuels, increased competition among crops for land, high demand for protein and global demand for natural resources, costs are rising for Solae, along with the rest of the food industry."

The food industry is wrestling with higher input costs:
• Soybean prices have skyrocketed in the past year, nearly doubling in price.
• Identity-preserved soybeans are difficult to source, as more farmers plant genetically modified crops.
•  Higher soybean and corn prices have caused increased costs for the livestock and dairy industries.
•  Natural gas and oil prices are fluctuating.
•  Consumers in China, India and Latin America are demanding more meat and dairy protein in their diets, adding more stress on the global food supply.

For several decades, Solae has invested in health benefits research and new application and product technologies, helping customers profitably grow their businesses. Solae is delivering on its promise to advance global nutrition through food ingredient innovation by enabling customers to offer affordable, great-tasting and nutritious food products to consumers around the world.

In order for Solae to maintain a consistent level of service, innovation and investment in research for future soy solutions, Solae is raising the price of its offerings.

"While the cost of soybeans is increasing, soy protein's value relative to other industries is strong," Fite said. "Rising costs are affecting the conversion of meat and milk proteins more dramatically than soy protein, meaning the relative cost increases for meat and dairy are larger. Solae's research and development, marketing, sales and quality assurance teams are working together to deliver solutions for current projects while developing innovations for tomorrow.”