Spotted! This juicy industry update posted to www.canadianprotein.com, a great piece of information for the protein markets, but only mentions milk & dairy products, we are confident as we get approached more now than ever for Hemp Protein powders for oversees countries that are in big demand for gaining in the market for raw supply. This is great news for hemp plant-based demands let alone the growing health concerns that are consistently reported such as Lactose Intolerance, Celiac’s, Crohn’s… and other digestive disorders.
So many of you have asked about the protein price increases and why they have gone up or why they have heard of the increases, etc. Well, the fact is that milk and dairy products are commodities and that makes their derivative commodities as well. So, you can think of whey like you can think of gas prices, when demand is high prices go up, when demand is low prices go down, its simple economics 101 and supply and demand.
Now there are a few economic conditions affecting this and here’s a few that you can chew on for now. First is the huge demand of emerging countries that had not had a big demand for this product in the past such as, China, India, South American countries like Brazil, Russia, etc. These countries have exploding populations, which increases demand for whey in order to manufacture products like even baby formula.
Another big reason is transportation costs and that is an obvious increase as we’ve all felt the effects of this one.
The last one we will list is the increase in the fitness industry itself. Never before has the world seen such a demand for health products and unfortunately the raw suppliers are capitalizing on this demand as they feel they are finally making the returns they should be and it is more of a level playing field now since back in the day whey was selling for only a few dollars per pound and retailers and packagers where selling it for not much less than it’s going for now, so they feel it’s a more fair playing field, which mostly comes from dairy farmers that our raw whey suppliers have told us. On the other end of this reason, just as above when demand goes up and supply goes down, prices go up.
Now, this is all coming second hand from our suppliers so you can hold us to this, but from what we’ve seen in the economy and world markets, it seems bang on.
3/31/2012 reference link: www.canadianprotein.com