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To our Valued Customers:
In case you were unaware, the supplement industry is being hit with a significant price increase that affects dairy proteins. This includes whey proteins, milk protein isolates, milk protein concentrates, caseinates and any protein or derivative from cows milk. Milk protein prices have soared to record levels within a matter of weeks with the industry-wide price increasing over 42% since December 2006. This is a direct result of the ongoing high demand for milk products in China, drought conditions in New Zealand and possible hedge fund market impact. We at www.MUSCLEMAGNEPA.com are sensitive to how this may impact you, our loyal customers. While we must pass on the increased costs, we are working diligently on acquiring alternate products to accommodate your protein supplement needs.
What caused the price increase?
Similar to the rising cost of fuel that is directly influenced by ongoing supply and demand, milk protein pricing is directly related to the "supply versus demand" of milk. While the actual price is determined by an index posted weekly through the Chicago Board of Trade, it is driven by the worldwide demand for milk. Over the past several months there have been and continue to be a steady rise in demand for milk products in China and, to a lesser degree, other developing countries. The demand was further increased by low milk production in New Zealand brought on by drought conditions and higher animal feed costs. In addition, the pressure to meet the demand with US milk supplies caused prices to increase further. The impact was lessened a bit early on by the US Government but, that support has stopped which resulted in the rapid price increase seen over the last three months. With milk protein (i.e. whey protein) purchase contracts expiring, most companies are being hit with greater than 40% price increases.
Our commitment to quality
During this time of increased demand, we want to assure our customers that we will continue to provide the same high-quality products that our customers have come to expect from us.
Thank you for your understanding and continued support.
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