FDBusiness.com

Milk powder production to rise according to CoBank

 Breaking News
  • UK Bottled Water Sales Top 4 Billion Litres For First Time Last year’s hot summer boosted UK water drinks consumption by more than 7% to 4,267 million litres, according to a new report from food and drink experts Zenith Global. This was worth an estimated £3.330 billion at retail prices. Sales of plain bottled water in retail packs increased by 7.9% to 3.4 billion litres, whilst [...]...
  • Morrisons Signs Up to Arla UK 360 Farm Standards Programme Arla Foods’s new farming standards programme Arla UK 360 continues to gain traction as Morrisons becomes the first retailer to commit to supporting the standards across its entire Arla milk supply. The move means approximately 200 Arla farmer owners will be directly supported by Morrisons to deliver across the eight farm business areas identified in [...]...
  • Vitafoods Europe 2019 – Guiding the Industry to a More Sustainable Future As environmental awareness reaches new heights and the world’s population continues to rise, the issue of providing sustainable foods which also offer a high nutritional value is set to grow, in both importance and complexity, over the next decade. It is with these considerations in mind that Vitafoods Europe 2019 has developed its agenda. The [...]...
  • Nordzucker to Invest €100 Million in Swedish Sugar Production Nordzucker Group will concentrate its sugar production in Sweden at its factory in Örtofta and as part of this process the refinery at Arlöv will be closed. Around €100 million will be invested in the strategy. The project is expected to be completed in autumn 2021. Based at Braunschweig in Germany, Nordzucker Group is one [...]...
  • FrieslandCampina Plans to Build a Sustainable Dairy Processing Plant International dairy co-operative Royal FrieslandCampina is exploring options to build a sustainable and innovative dairy processing plant in the Netherlands. The plant is intended for the processing of member milk into fresh dairy products, ingredients used for the production of early life and adult nutrition, and for cheese manufacturing. It would be built according to [...]...

Milk powder production to rise according to CoBank

June 30
11:59 2016

POWDERED-MILK-IN-SPOO_420According to a new research report from CoBank U.S. producers of milk powder are set to bring significant amounts of new production capacity online over the next two years despite an ongoing global supply glut.

Despite a 30% reduction in milk prices since 2015, global milk production has continued to rise, with much of the surplus milk ending up as powder. This excess volume of powder, along with large inventories in the U.S. and New Zealand, has kept world milk powder prices low, with little hope of a meaningful recovery until at least 2017, according to CoBank.

“U.S. exporters will be up against robust competition and further challenged by a relatively strong U.S. dollar,” said Ben Laine, a senior economist with CoBank’s Knowledge Exchange Division. “Recovery could be slow as European Union stocks are returned to the market.”

However, in the face of this supply buildup and flagging prices, new projects are in the works that could add an estimated 440 million pounds per year of additional powder manufacturing capacity in the U.S. over the next two years.

“While this expansion may appear to be ill-timed in the current market environment, the longer term outlook paints a much different picture,” said Laine. “In the long run, emerging markets and a growing world population will enable U.S. dairy producers and processors to expand, especially if our powder industry competitively positions itself.”

The world population is expected to grow by more than one billion people by 2030 with most of that growth expected to occur in Africa and Asia, regions that are not particularly hospitable areas for milk production. The economic conditions in these areas, however, are said to be favourable for the consumption of dairy, a relatively inexpensive way to incorporate high-quality proteins into a diet. It is expected that an additional 145 billion pounds of milk will need to be sourced in these regions by 2020, with an even bigger increase required over the subsequent 20 years, notes the report.

U.S. producers have recognised this opportunity and are striving to become the suppliers of choice for milk powders in today’s global marketplace. In fact, nine U.S. manufacturers who represent more than half of the country’s skim milk powder (SMP) production have recently invested in or are currently investing in the ability to increase production while meeting the rigorous specifications put forth by global customers, according to the report.

To bolster their competitiveness in world markets, U.S. powder manufacturers will need to tailor and calibrate their output to meet global preferences and requirements, CoBank believes. New and upgraded facilities must be increasingly flexible and able to shift production between SMP, nonfat dry milk and whole milk powder. The new facilities also tend to be massive in processing capacity in order to realize larger economies of scale, thus lowering unit costs. Additionally, the ability to manufacture other milk-based ingredients such as lactose, casein, milk protein isolate, milk protein concentrate and others can diversify product offerings and improve margins.

“Dairy processors will need to be able to respond to shifts in the dynamics of component values and manufacture the most economically favourable product mix at the time,” said Laine.

About Author

admin

admin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements