(Bloomberg) -- A supplier to Beyond Meat (NASDAQ:BYND) Inc. said consumers of plant proteins should brace for higher prices following a spike in pea costs.
Peas are a key ingredient in some alternative proteins, where demand is growing. At the same time, European pea supply was hurt by adverse weather, while a drought in Canada cut pea output there by 45%, causing prices to more than double from last year, France’s Roquette Freres SA said.
“The dramatic increase in prices will inevitably lead to costs being transferred to customers,” Roquette said in a statement on Monday. The company has also been hit by high energy prices.
Demand for alternative proteins has expanded in recent years as climate change and health concerns drive consumers to products like plant-based burgers. Roquette’s warning of higher prices also comes as food costs in general are near the highest in a decade amid harvest worries, higher shipping costs and supply-chain disruptions.
Beyond Meat didn’t immediately respond to a request for comment.
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