Solae increases prices of soy ingredients

Solae has increased prices of its high quality soy ingredients by 7-9% across the globe.

The company said it has been affected by general inflationary pressure in the current economic environment.

Significant global market dynamics affecting food manufacturers are:

- The Global Producer Price Index is expected to increase by about 4.7% in 2010.

- The Producer Price Index is expected to continue to increase at an average rate of 2.7% globally during 2011, with some regions as high as 8-10%.

- With continued advances in biotechnology increasing crop production, the availability of non-GM crops is shrinking and non-GM premiums will continue to increase.

- The 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 the current outlook, it says price increases are unavoidable.