Production, Consumption, and Pricing of Milk and Its Components

Abstract

Production and consumption of milk fat, milk protein, and lactose were compared for 1970, 1975, 1979, and 1983 to determine whether production and consumption were balanced and, if not, to determine how balance might be achieved. Ratios of these components in milk produced remained virtually constant from 1970 to 1983. However, increased cheese consumption during this period resulted in increased per capita consumption of fat and protein despite reduced consumption of these components in other dairy products. Because lactose is not in cheese, lactose consumption declined. Because of these changes, imbalances of production and consumption of milk components now exist and are due almost entirely to too much lactose being produced. Because of small variation of lactose percentage, this imbalance could be reduced by increased fat and protein percentages. Milk pricing should encourage this by emphasizing fat and protein (not solids-not-fat). Fat and protein differentials should differ from market to market and should be based on utilization. Milk pricing is reviewed, and a procedure for determining blend differentials is outlined. © 1986, American Dairy Science Association. All rights reserved.