St. Louis, Missouri, April 4, 2008 - Solae LLC, today 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.
Recent Solae innovations, such as SUPRO® Max, build on the company's historic leadership of offering food and nutrition companies more options to manage costs. Solae's customers can count on its 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.
"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.
"Solae's dedication to customer service, product quality, innovation and safety will remain unparalleled in the food industry."
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 has more than 40 years of experience in applying innovative technology to unique processing situations.
About Solae LLC
Solae is the world leader in developing innovative soy-based technology to 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 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 an alliance between Bunge Limited and DuPont.