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The Great Protein Supply Crunch of 2007
Posted in:
Articles by ProSource,
Superfeature Articles,
Supplement Articles,
Protein
By Jim Casagrand
| Oct 10, 2007
 Late this past summer, you may have noticed the price of your favorite
protein products increased - in some cases significantly.
Unfortunately, manufacturers and retailers of
protein supplements
are caught up in a worst-case scenario in which greatly elevated
production costs and decreased profit margins are wreaking havoc on the
protein market. The reasons are many and somewhat complex, but here are
some of the contributing factors.
Part of the price increase can be attributed to our nation's increasing
demand for alternative energy sources. More corn, which was previously
an inexpensive feed source for cattle, is beginning to be devoted to
ethanol production, which has driven demand up dramatically.
Consequently, it costs more to feed farm animals, and this cost is
being passed on to the consumer for dairy end-products (milk, cheese,
etc). Because the raw materials to make whey and casein protein come
from cows, they also markedly increased in price.
Further compounding costs are droughts - both here and abroad.
These droughts are responsible for poor crop growth and less production
of corn and hay, which is also a feed source for animals. Consumers in
Australia experienced considerable price increases at the grocery
store, and growing demand in Asia for dairy products further
contributes to the shortage here.
In addition to the weather not cooperating and increased
alternative energy production, there is yet another factor driving up
dairy prices - demand from newly prosperous countries in Asia, like
China and India, and also in the Middle East. As recently as just a few
years ago, dairy farmers deliberately focused on other more profitable
products because there was more than adequate supply of dairy to
satisfy demand. Abrupt changes in the market and unfavorable weather
conditions changed all that literally overnight. Now almost anything
that is related to cows and corn (dairy - including whey and casein,
meat, eggs, poultry, animal feeds, leather jackets and shoes, etc.) is
becoming more expensive.
Is there an end in sight where we can look forward to the prices of our
favorite protein products
decreasing? Not in the short term, and the long term will be determined
by weather and demand - both of which are very unpredictable. But we
are fortunate to live in a nation where consumer demand generates
greater buying power and lower prices for customers than elsewhere in
the world. Whey is a superior source of protein because of its easy
digestibility, amino acid profile and abundant immune-supporting
microfractions. And when it comes to the most health benefit for your
dollar, whey remains unrivaled.
Sources:
Australia's Woolworths Warns Drought Will Lead To Price Rises
Food prices spike on demand, energy costs
Drought, demand for ethanol responsible for high hay prices
Global Dairy Demand Drives Up Prices
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