Could your protein powder cost more? US-Canada trade war threatens whey | Today’s news
The latest trade tension between the US and Canada has hit an unlikely corner of the food market: whey protein.
The US-Canada trade war is hitting the protein aisle
Whey, a byproduct of cheese production, is a key ingredient in protein powders, shakes, snacks and increasingly popular high-protein foods. Now producers on both sides of the border are scrambling to deal with tariffs and restrictions that could make the ingredient more expensive and harder to obtain.
The United States is set to ban imports of several Canadian dairy products, including certain whey products, starting September 29. The move follows Washington’s decision to impose additional tariffs on Canadian dairy products, while Canada responded with its own tariffs on American goods.
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The Canadian government has listed whey protein concentrate and several forms of whey powder among the products subject to a 50% counter-tariff on US imports.
For businesses that rely heavily on the ingredient, the disruption is already being felt.
Jim McMahon, CEO of British Columbia-based Fit Foods LP, told CNN his company depends on American suppliers because the highly processed whey it uses is limited in Canada.
“If there is no tariff relief, it will be devastating for consumers, retailers and us,” McMahon said, according to CNN.
Why is it difficult to replace whey?
The problem is not just finding another source of protein.
Canadian farmers produce whey, but the country has significantly less cheese production than the U.S. and fewer facilities capable of processing whey into the concentrated forms needed by protein manufacturers. This makes it difficult to change supplier.
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Companies could theoretically turn to alternatives such as pea protein, which are not subject to the same tariffs. But changing an established product is much more complicated than replacing one component with another.
Manufacturers may need to reformulate recipes, adjust manufacturing processes and rebuild parts of their supply chains.
Aaron Skelton, president of the Canadian Health Food Association, told CNN that businesses are already trying to find alternatives. “Economic tools can be turned on and off fairly quickly. Supply chains can’t,” he said.
Consumers could end up paying more
The pressure is also reaching the wholesale market.
Whey protein concentrate prices hit a record $13 a pound in June, up about 250% from a year earlier, according to USDA data cited by CNN. Prices later eased to around $10-$11 per pound, but producers warned that consumers had not yet absorbed the full effect of the increases.
This could mean higher prices for protein powders and finished products containing whey in the coming months.
The impact is not necessarily the same in both countries. Canadian producers face particularly acute supply problems due to their reliance on US whey, while US consumers could see higher prices as broader market disruptions take hold.
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The latest measures are part of a much wider worsening of trade between the two neighbours. The U.S. announced a ban on select Canadian dairy products, alcohol and motorcycles effective Sept. 29, while Canada imposed retaliatory tariffs on roughly $20 billion worth of U.S. goods earlier this month.
But for the fitness industry, the trade dispute has presented a surprisingly simple problem: keeping protein on the shelves without making it significantly more expensive.
