The Drought DOES NOT Need to be Your Own Food Disaster!!

According to Food Business News, the crop conditions continue to worsen.

What this means is an escalation in the costs to produce livestock and ultimately to make nutritious food products from animal proteins. As an industry we will see our prices to consumers go up and portion sizes go down. For sensitive populations like Child Nutrition and School Food Service, or hospital feeding for elderly, these raising costs are a problem as animal proteins are a cornerstone of these diets and often they are paid for by government feeding programs.

Fortunately, SPI Group and our suppliers of functional ingredients have solutions to this problem!

Soy protein is a complete protein, as good for growing bodies as milk, eggs and beef. Even though the cost for commodity soybean meal is climbing, it’s still more economical and a better eating experience to make a beef patty or roast beef with soy protein.

•Did you know that one acre of farmland can produce 20 pounds of beef and 356 pounds of soybeans?! At a pound a day, that is inefficient food! I love this sustainability clip from Solae (be sure to turn on the sound!).

•Our beef collagen and alginates can provide the juiciness and texture of meat without adding cost through their high levels of extension and hydration.

•Our functional fibers from soy, potato and oat can bind 7-10x their weight in moisture and are allowable by the USDA.

Contact us to learn more about tools and solutions to prevent the disaster from hitting your door.

The U.S. drought – what does it mean for us?

If you have been watching the news lately, you know that the United States mid-West is in the worst drought in 50 years. With corn and soybean crop estimates declining in output, as well as declining quality expectation every day; commodity prices are already trading at record highs.

• Traditional prices of defatted soybean meal have been below $300 per ton. On July 21 the market closed at $546 per ton. Farmers reported deteriorating conditions for soybeans as well. The report for week of July 9 said 30% of the crop was in good condition and 4% excellent. In the most recent week, 27% is listed as good and 4% as excellent.
• Normal year corn pricing is between $2.50 and $4.00 per bushel, on July 21 it closed at $8.08 per bushel. Reports for week of July 9 said 27% of the crop was listed in good shape and 4% excellent. The most recent report list 23% good and 3% excellent.
For more details click here.

Fears are on the rise of a global food price increases as we saw in 2008. This was mainly due to rice and wheat production shortages in regions other than the US. Since the US is one of 4 major corn and soybean growing regions in the world, we influence global supply and pricing. Click here for more information.

Numerous reports expect the consumer prices to go up in 2013 by around 10%. Most ingredient suppliers expect prices to go up with the drought situation continuing to worsen. To what degree is unknown as raw material costs are just one reflection of ingredient processing costs with lower protein problems likely to persist.

On the dairy and livestock side, milk production is expected to go down as farmers find that they cannot afford to feed as many animals. Recent short term reports showed a 10% drop in milk supply. If milk supply drops, less cheese and correspondingly less whey protein will be processed, leading to continuation or worsening of the present short supply situation on whey protein and higher prices. Meat and animal protein products should see a lag in price increases as herd size reduction will be slower to implement.

With so much media focus on the drought, we recommend following a newswire to stay up to date on the most recent information. We like Soyatech, a firm that helps develop, support and promote better utilization of our planet’s agricultural resources.

SPI Group works hard to maintain economies of scale for the benefit of our customers. We can help you manage the swings in the fluctuating market with tools for managing pricing, extending meat, blending proteins and seeking innovative methods for meeting consumer demands. Contact us to learn more about how to manage your ingredient costing needs.

I’m Active Nutrition – are You?

Weight Management as a product segment remains a large and targeted market ($13 billion) by many food manufacturers in the United States. Performance Nutrition, or the use of protein to increase muscle mass by hard core athletes and bodybuilders, while smaller ($6 billion), remains a very high profile target market in the United States.
But there is a market opportunity larger than each of these that lies in the middle. If your target customer is not a hard core body builder or athlete, and your target is not on a measured weight loss diet, but they take supplements and work out – what market is this customer a part of?
Active Nutrition!
51% of consumers of weight loss products exercise occasionally
89% of consumers of performance nutrition products exercise occasionally
Combined, this section of the two markets represents $2 of every $3 spent or $12 billion! And they are not the core target of the intended market segments of Weight Management and Performance Nutrition.
Clinical data has shown that the use of soy protein in combination with whey and casein increases muscle build in athletes and decreases abdominal fat in post-menopausal women.
Objection! There is a negative opinion of soy in the Muscle and Fitness crowd. Not so says Drs. Mark Cope and Greg Paul from Solae, LLC. Over 25 clinical nutrition studies have shown NO CHANGE in testosterone levels on diets with 50 grams of soy protein a day. Plus, isoflavones do not fit the estrogen receptor but do block and fill it, this means there is no way for estrogen to be produced. AND, isoflavones are anti-oxidants which reduce muscle fiber degredation or muscle soreness.
Because many of SPI Group’s proteins, fibers and Omega-3s are used in foods and supplements in these categories to increase satiety, manage weight, and provide a complete source of protein, we have been involved in this market for a long time. Ask us about ingredients to meet the lifestyle of your Active Nutrition customers. Check out this video for active nutrition inspiration!

About Omega-3

Omega-3 is a type of healthy fat – found mainly in marine fish, but also in certain plants and nuts. EPA (Eicosapentaenoic Acid) and DHA (Docosahexaenoic Acid) are types of omega-3, and fish is the major source of these – we call them the dynamic duo!
Many scientific studies have shown the health benefits of Omega-3 EPA/DHA at every life stage – from before birth and continuing as we age. These benefits include heart health, brain function, and overall good health.
If you are not a fish fan, you can choose to take Omega-3 EPA/DHA fish oil supplements and enriched foods to make sure you’re getting your daily dose. The USDA (US Dept of Agriculture) and HHS (Department of Health and Human Services) suggest consuming about 8 ounces per week of a variety of seafood, which provide an average consumption of 250 mg per day of EPA and DHA.
For more information, see the Meg3 website and contact your SPI Group sales rep to find out how to incorporate Omega-3 into your food products!