DCA Benchmarks: Protein commentary week 40

High-protein whey prices are down again this week, with the WPC80 benchmark recording the largest decline. At EUR €23,000 per tonne, the benchmark is now about 18% below its peak of more than EUR €28,000 per tonne three months ago. The WPI90 benchmark has remained more stable.WPC80 has increasingly become a commodity within the high-protein whey segment and has attracted a broader range of customers. As a result, the market has also become more exposed to shifts in demand. In the sports nutrition and retail segments, buyers are increasingly resisting the high prices for WPC80. This has brought blends containing lower-priced alternatives, such as MPC85, into the picture. While the cheapest WPC80 is available at prices in the low EUR €20,000s per tonne, MPC85 is trading at around EUR €16,000 per tonne.The challenge with MPC85, as well as alternatives such as micellar casein, is availability. Some volume is available, but the number of reliable producers remains limited. The functionality of milk proteins also differs from that of whey proteins.In the coming months, it will be interesting to monitor how the market develops: whether demand shifts back towards WPC80 as the number of producers gradually increases and prices stabilise, or whether the protein market broadens further as alternative products gain a larger role.Demand for high-protein dairy products, however, is not expected to subside significantly in the near term.