FDBusiness.com

Milk powder production to rise according to CoBank

 Breaking News
  • Lactalis Expands in Infant Nutrition With €740 Million Acquisition Lactalis Group, the international dairy group based in Laval, France, is acquiring the Nutritional business of Aspen Pharmacare for €739.8 million (R12.9 billion). The business being acquired supplies a wide range of infant nutritional and growing-up milk products across both the premium and value segments. It manufactures and markets well established quality brands, including S-26, [...]...
  • Thatchers Cider to Invest £14 Million in New Cider Mill Thatchers Cider, the family owned English cider producer, is to invest £14 million in a new cider mill at its Myrtle Farm site in Somerset to meet growing demand for its products. The company has applied for planning permission and, if granted, the new mill would come on stream in 2019. “This investment is about our [...]...
  • Coca-Cola Great Britain Teams Up With Premier League Premier League and Coca-Cola Great Britain have announced a new three-and-a-half-year partnership, starting in January 2019. It is the first sponsorship Coca-Cola Great Britain will activate across multiple brands within its portfolio, showcasing a range of drinks including sparkling soft drinks, water and fruit-based drinks, with low and no-sugar options. The partnership will see Coca-Cola work [...]...
  • Barry Callebaut Completes $30 Million Capacity Expansion in North America Barry Callebaut, the world’s leading manufacturer of high-quality chocolate and cocoa products, has announced the completion of several expansion investments in three of its North American facilities located in St Hyacinthe, Quebec; Chatham, Ontario; and St Albans, Vermont. The investments amount to close to US$30 million and are in line with previously announced plans. Recent investments [...]...
  • Strong First Half From Hilton Food Group Hilton Food Group, the UK-based leading specialist international food packing business, has reported a 25.0% increase in turnover to £863.6 million and by 24.5% on a constant currency basis for the 28 weeks to 15 July 2018. Volumes increased by 12.7% reflecting growth in the UK, Ireland and Australia. Operating profit for the first half [...]...

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

  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
  • September 30, 2018Trade Fair for Butchers, Caterers and Meat Industry (Meat Expo)
  • October 1, 2018Poznan International Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements