‘Worst-hit products’: Prices for whey protein powder more than double due to supply chain crisis

The cost-of-living crisis has spread to another item, with prices “more than doubling” in the last 12 months – and showing no signs of easing.

The cost-of-living crisis has come for bodybuilders and fitness junkies, with prices for protein powder “more than doubling” in 12 months.

Leading online supplement store Bulk Nutrients has warned customers that whey protein prices have been particularly affected by global supply chain issues, which are “probably the worst they have been since 2019, and unfortunately, most of the pressures are not going to let up anytime soon”.

A 1kg bag of whey protein isolate currently costs $43 from Bulk Nutrients and an eye-watering $73 at fellow retailer True Protein.

Writing in a blog post, Bulk Nutrients founder Ben Crowley said a key issue was the “whopping” five times increase in global shipping costs since 2018, which “went ballistic” during the pandemic.

“Unfortunately, whey protein is one of the absolute worst-hit products when it comes to rises, with prices of raw whey protein concentrate (WPC) and whey protein isolate (WPI) more than doubling in a 12-month period,” he said.

The pandemic sent global shipping prices ‘ballistic’. Picture: Remko de Waal/ANP/AFP

“To make matters worse, unlike baby formula (where whey protein makes up a small percentage of the product) our WPC and WPI products contain between 94 per cent and 100 per cent whey protein, so massive increases mean a huge increase in the cost of production for us. The big issue here is that demand is higher than ever and due to a combination of Covid effects (like shutdowns) and natural events like droughts, there is far less product available.”

Even when droughts subside and farms try to restock, he said, the cost of fertiliser and grain has skyrocketed due to the war in Ukraine, so their input costs are much higher.

“This explains why some companies are literally offering no stock whatsoever, with those who can get stock having to raise their prices significantly,” he said.

Whey protein prices have more than doubled.

Mr Crowley warned that some supplement companies were changing suppliers but “not all appear to be communicating to their customers when supply and country of origin are changing”.

“Our strict standards mean we won’t consider using a WPI when it contains any more than 1-2 per cent carbohydrates,” he said.

“It’s clear that some companies are using a WPI which contains around 5 per cent carbohydrates, yet their labels remain unchanged, so the customer has no visibility around what they are consuming.”

With prices expected to stay high into 2023, people struggling to afford whey protein could consider plant alternatives such as pea or rice-based powders, Mr Crowley added.

“While the pricing of these products has increased, the rises are far less significant than what we have seen in the dairy industry,” he said.

“If you don’t want to ditch whey altogether (which is understandable) then you could consider going one for one and getting a plant protein in addition to your whey. Many people have adopted this ‘flexitarian’ method for lifestyle reasons well before we saw any increases, where they alternate between whey and plant proteins.”

CrossFit trainers Toa Faataape and Asher Steele. Picture: Liam Kidston

TrueProtein chief financial officer Lachlan Cornwell told news.com.au there was “no question that the dramatic upswing in the cost of dry whey has put additional financial pressure on our business”.

But he said the company had “tried our best to avoid being myopic in terms of focusing purely on short-term supply constraints and the consequent cost implications”.

“The most important thing for us is delivering products of the highest quality and efficacy,” he said.

“When you refuse to compromise on these promises to your customers, you have to be innovative in other parts of your business to find ways of offsetting the impact of short-term supply shocks. Given we produce our products in-house in Sydney and are not at the mercy of global contract manufacturers, we have been able to navigate this challenge with the support of our suppliers.”

Switching to plant-based proteins is one option. Picture: @mrtimrobards/Instagram

Nutrition coach Dayne Hudson said there were a number of factors that had all contributed to the whey crisis.

In addition to lockdowns and droughts, as outlined by Mr Crowley, another reason was simply “there’s less cheese”.

“Whey protein comes from cheese and has always been a surplus product – we consumed 26 million metric tons of cheese in 2019,” Mr Hudson said.

“But the whey supply chain stopped during the lockdowns which meant top dairy-producing countries like America and Australia had less manpower on the farms. Some even shut down entirely.”

Worse still, cheese consumption dropped – particularly at restaurants, largely because they were shut – and so dairy manufacturers halted their cheese production and focused on other dairy products.

“Another kick in the teeth for whey protein production,” Mr Hudson said.

Droughts and heatwaves have hurt livestock farming in Europe. Picture: Fred Tanneau/AFP

He also recommended switching to a plant-based protein for those unable to afford the price increases.

“We need to keep consuming enough protein – one to two grams per kilogram of body weight per day – to help keep us full, prevent overeating, and ensure we stay on track with our fat loss so we look as Mickey Mouse as possible,” he said.

It comes after research from CommBank last week found nearly one in four Australian businesses were purchasing more from domestic companies to overcome supply chain problems.

“It would appear businesses are not waiting for supply chain issues to ease, but rather are adapting with new procurement processes and asset management,” CommBank business banking executive Mike Vacy-Lyle said in a statement.

“Many businesses are also extending the life of current equipment or sourcing cheaper products and brands not normally considered, to overcome supply chain problems.”

Bondi trainer Elle Cooper with a protein shake. Picture: Jonathan Ng

The CommBank survey found the greatest disruption to supply chains had been experienced when purchasing passenger vehicles, with around half of businesses reporting delays.

The production, retail, hospitality and distribution industries have been impacted the most by supply chain issues. The construction industry was the worst affected, with 86 per cent of respondents expecting increased costs over the coming year.

This week, Perth-based hot sauce entrepreneur Renae Bunster described how she was forced to branch out into alcoholic drinks to diversify her revenue stream away from a reliance on exports.

In recent months shoppers have complained of price increases and shelf shortages affecting everything from grocery staples like iceberg lettuce and paper towels, to over-the-counter remedies including Lemsip and Gaviscon.

And as tensions rise between Taiwan and China, experts have warned of further disruptions to one of the world’s busiest shipping lanes.

David Leaney, an international supply chain management lecturer at Australian National University, told news.com.au last week the popular maritime trade route wasn’t just used by countries in the area.

“Even if you’re going from America to Australia, you usually go via the South China Sea because there are other trade reasons to do that – drop things off, pick things up,” he said.

“So even if your final destination isn’t China, a lot of ships go via the South China Sea and a big chunk of those go through that little strait between Taiwan and China.”

Originally published as ‘Worst-hit products’: Prices for whey protein powder more than double due to supply chain crisis