Here's the abbreviated version:
- Raw whey prices have risen dramatically. Our cost for Fonterra whey is now roughly five times what it was several years ago.
- There have been two major increases during 2026 alone. Our whey costs increased by approximately 37%, followed by a further 42%. Because the second rise applies to the already-increased price, that represents a combined increase of approximately 95%, rather than simply 79%.
- This is a worldwide shortage, not just a New Zealand issue. Internationally, WPC80 prices have risen by approximately 250% in the US and have roughly doubled in Europe. Some market reporting shows whey isolate prices reaching around five times their 2023 level. Associated Press, Financial Times
- Demand for high-protein products has grown faster than supply. Whey is now being used across protein bars, yoghurts, drinks, cereals and general food products—not only traditional protein powders.
- The growth of GLP-1 weight-loss medications has added further demand. People using these medications are frequently encouraged to prioritise protein to help preserve muscle, creating another rapidly growing market for whey.
- Whey supply cannot be increased quickly. Whey is produced during cheese manufacturing, and converting it into WPC80 or whey isolate requires expensive filtration and drying facilities. New processing plants can take several years to build.
Worldwide demand for protein has exploded
Protein is no longer just something used by gym-goers and bodybuilders.
High-protein products have become one of the biggest trends in the global food and beverage industry. Whey protein is now being used across:
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Protein powders and sports nutrition
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Ready-to-drink protein shakes
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Clear protein drinks and protein waters
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Protein bars and snacks
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High-protein yoghurts and desserts
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Healthy-ageing and medical nutrition
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Weight-management products
This means supplement companies are now competing with some of the world's largest food, beverage and nutrition companies for the same whey protein.
The growth has been so strong that worldwide production capacity has struggled to keep up.
There simply isn't enough supply
Whey Protein Concentrate (WPC) and Whey Protein Isolate (WPI) require specialised processing equipment, filtration and drying capacity.
That capacity can't simply be increased when demand suddenly rises.
Major dairy manufacturers around the world are now investing heavily in expanding whey protein production, but new facilities can take several years to become operational.
Until that extra capacity comes online, competition for available whey remains extremely strong — particularly for high-grade WPC and WPI.
Why does this affect New Zealand protein?
This is probably the most important point.
Even though we purchase New Zealand whey from New Zealand suppliers we pay based on the US Dollar, and the value of that whey is influenced by the global market.
New Zealand dairy proteins are exported all over the world.
Our suppliers aren't setting a completely separate price for New Zealand customers. They are selling into an international market where buyers from Asia, North America, Europe and elsewhere are competing for the same product.
So if international customers are prepared to pay significantly more for New Zealand whey protein, the value of that whey increases here as well.
Being located in one of the world's largest dairy-producing countries unfortunately doesn't insulate us from global whey prices.
Why has WPI been hit particularly hard?
Whey Protein Isolate requires additional filtration and processing compared with standard whey concentrate, and there is less production capacity available.
At the same time, demand for WPI has increased substantially due to growth in premium protein powders, clear whey products, RTD drinks and specialised nutrition.
The result is simple: more companies are competing for a limited amount of whey protein.
And when global demand grows faster than supply, prices rise.
What does this mean for us?
Whey protein is by far the largest cost involved in producing our protein powders.
We have absorbed as much of these increases as reasonably possible, but with the cost of whey rising so significantly, increases have to be reflected in our retail pricing.
Our priority remains the same: continue using quality protein ingredients, maintain the protein content and quality of our products, and keep our pricing as competitive as possible.
We appreciate our customers' understanding while the global protein market works through what has become an unprecedented period of demand.
