Effective immediately, Solae will increase prices of its high quality soy ingredients by 7–9% across the globe. Like all food companies, Solae has been affected by general inflationary pressure in the current economic environment.
According to The Wall Street Journal, an inflationary tide is beginning to ripple through America’s supermarkets and restaurants, threatening to end the tamest year of food pricing in nearly two decades. Prices of staples including milk, beef, coffee, cocoa, and sugar have risen sharply in recent months. Costs are being driven by growing demand for meat in China, India, and other emerging markets. That’s driven up grain prices, which in turn boost the cost of chicken, steak, bread, and pasta. Grain prices also have been nudged higher by drought in Russia, planting problems around the world, and speculative trading.
Food prices are rising faster than overall inflation. The consumer price index for all items minus food and energy rose 0.8% over the year to September, the lowest 12-month increase since March 1961, the Bureau of Labor Statistics said. The food index rose 1.4%, however. The U.S. Agricultural Department is predicting overall food inflation of about 2–3% next year.
“Solae is not immune to these economic pressures, and this new pricing is critical to our business and our ability to serve our customers,” said Torkel Rhenman, CEO, Solae. “Solae continues to be in a great position to help customers through these challenges by providing innovative, economical solutions. We are committed to providing high quality, predictable soy ingredients while continuing to invest for future innovation to meet our customers’ needs.”
The Wall Street Journal article