October 25, 2007

More manufacturers looking at using soy to replace milk

As milk prices continue to rise globally, more manufacturers are looking at using soy to replace milk for processors.

Solae's two new soy-based ingredients have been rolled out to cater to just this segment, according to  a report by Dairy Reporter.

The manufacturer claims the products could be used by processors to replace dairy products without significantly affecting nutrition and taste and could used in a variety of beverage and bakery products.

The challenge comes at a time when dairy processors are facing scarcity in supplies amidst growing demand, especially in Asian countries like China. Milk prices in some Western countries are nearly double that of the previous year.

The higher ex-farm prices have forced dairy processors like Danone and Arla to cut back on the range of products they offer and affected their margins, according to  Dairy Reporter. 

As milk prices continue to remain high, more companies are targeting food processors with cheaper alternatives.