In order to maintain a consistent level of service and innovation, Solae is announcing a global price increase, effective immediately, or as contracts allow.
Solae, like other food companies, has been affected by record-high increases on inputs, including raw material, energy, transportation, packaging and labor. The following are significant global market dynamics affecting food manufacturers:
-- Increased global demand for protein is placing pressure on
agricultural and food markets. Middle classes are taking hold in China,
India and Latin America, and those families are including more meat and
dairy in their diets, forcing those industries to step up production.
-- Higher commodity prices increase feed costs for the livestock and
dairy industries, impacting the meat and dairy protein markets.
-- While grain prices have declined over the past few months, this year's
soybean crop prices are still nearly double what they were in 2005 and are
anticipated to continue rising in 2009.
-- Protein levels from this year's North American soybean crop are
significantly lower than in previous years, dramatically impacting our
input costs and reducing factory capacity. While Solae is accelerating
network capacity programs to mitigate the reduction in effective capacity
and maintain its commitment to support the growing demand for soy protein,
there is no near term solution for how to avoid the cost increase impact.
"Solae is not immune to these pressures and this new pricing is critical to our business and our ability to serve our customers," said Michele Fite, Solae vice president of global strategy and marketing.
While market conditions are putting pressure on much of the food chain, Solae continues to be in a great position to help customers through these challenges by providing innovative, economical solutions. With animal protein prices at record levels, Solae's customers can count on our complete line of high-quality soy proteins and technical expertise to provide what many ingredient companies cannot -- more economical protein solutions to offset rising costs.
"Solae's dedication to customer service, product quality, innovation and safety will remain unparalleled in the food industry," says Fite. "Solae is the brand that food marketers can trust to deliver consistent, quality ingredients that help lower total formulation cost and improve profitability."
Solae continues its 50-year commitment to advancing technical and scientific innovation to deliver superior quality soy products. With offices, research facilities and manufacturing centers around the world, Solae has the essential resources to help customers develop and market healthy, innovative food and beverage products.
Solae is the world leader in developing innovative soy-based technology and ingredients for the food, meat and nutritional products industries. Solae provides solutions that deliver a unique combination of functional, nutritional and economic benefits to our customers. At Solae, the journey to innovation begins with nature. We take one of nature's best resources, the soybean, and create nutritious and great-tasting ingredients. Our goal is to provide solutions for today while innovating for tomorrow. With more than 1,000 products used by more than 3,500 customers, Solae's soy ingredients are enjoyed by consumers around the world in products such as baked goods, beverages, nutrition bars, meats, vegetarian meals and much more. Headquartered in St. Louis, Missouri, USA, with annual revenue exceeding $1 billion, the company was formed through a joint venture between Bunge Limited and DuPont. For more information, visit www.solae.com.