DCA benchmarks: Proteins commentary week 22

Another week, another price increase and another price record for WPC80. The DCA WPC80 benchmark for this week is established at €26450 a tonne. The benchmark for WPI90 remains unchanged, but - generally speaking - the whole market for high whey proteins still keeps moving up. The reason behind this process is well known. Consumption patterns are shifting and the broadening use of GLP-1 are strongly influencing the market. But, hardly a year ago the WPC80 price stood at €12000 a tonne and three or four years ago it was less than €5000. Some voices say that maybe in a couple of months, or sooner, the benchmark will be at €30000. Maybe that moment is nearer than we think, because instant quality WPC80 has already been sold at €29000, but at the other hand there is also good product being sold at prices between €25000 en €26000 a tonne. The problem remains however that demand is much bigger than production capacity, although this capacity is expanding. But the market is too. For those who can't afford the current high prices or who can't buy what they want, there are other dairy alternatives. In recent weeks the demand for MPC and MPI has also increased and so did the prices. MPC85 is already being sold at around €11000 a tonne, while a few weeks ago it was sold at €8500. This all does not mean that the only way for the prices in the protein market is up. There is always a possibility of a market correction and lower prices, but to producers and buyers alike a real market crash seems less and less probable, as it has become broadly accepted that the new market reality is here to stay.