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Production, Consumption, and Pricing of Milk and Its Components^{1, 2,}

Department of Animal Science, University of Minnesota, St. Paul 55108

J. K. Hillers

Department of Animal Science, Washington State University, Pullman 99164-6310

A. E. Freeman

Department of Animal Science, Iowa State University, Ames 50011

³ Reprint requests.

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.

¹ Scientific Journal Series Paper Number 14,493, Minnesota Agricultural Experiment Station.

² Contribution from the NC-2 Regional Research Project, Improving Dairy Cattle through Breeding, with Special Emphasis on Selection. Other members of the NC-2 Technical Committee: A. L. Brundage, AK; R. W. Touchberry, CA; M. Grossman, IL; T. G. Martin, IN (Purdue); H. W. Leipold, KS; L. D. McGilliard, MI; F. E. Eldridge, NE; L. D. Van Vleck, NY (Cornell); F. R. Allaire, OH; H. H. Voelker, SD; G. E. Shook, WI; A. J. McAllister, Agriculture Canada; I. T. Omtvedt, Administrative Advisor, E. H. Cobb, Cooperative State Research Service.