Effects of price fluctuations in livestock and meat products on vegetable protein markets

Abstract

The price of meat products will influence sales of vegetable protein in markets where both products compete directly. Fluctuations in livestock product prices have an impact on market growth of vegetable proteins, especially in the short term and for products in the retail consumer market. Initially the market for a vegetable protein product in retail markets may be cyclic, growing only when the price of competing animal protein is high and increasing. The suceess of a new vegetable protein product may depend to a great extent on the timing of its introduction. High animal protein prices could help the new product achieve enough market penetration or share to become established. Taste and other factors in addition to price would determine its ultimate acceptance. The long term market for vegetable proteins will be affected more by the relative differences between the price fluctuations. Changes in consumer taste, concern over health and food safety, and the ultimate “statue” of vegetable proteins will all help shape the long term growth.