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Department of Agricultural Economics and Rural Sociology, Pennsylvania State University, University Park 16802
Corresponding author: K. W. Bailey; e-mail: baileyk{at}psu.edu.
Recent declines in milk prices in the United States have sparked renewed concern that imports of milk protein concentrates (MPC) are increasingly entering the United States with very low tariff rates and is having an adverse impact on the US dairy industry. Milk protein concentrates are used in the United States in many different products, including the starter culture of cheese, or in nonstandard cheeses such as baker’s cheese, ricotta, Feta and Hispanic cheese, processed cheese foods, and nutritional products. One of the difficult aspects of trying to assess the impact of MPC imports on the US dairy industry is to quantify the protein content of these imports. The protein content of MPC imports typically ranges from 40 to 88%. The purpose of this study is to develop a methodology that can be used to estimate the protein content of MPC on a country by country basis. Such an estimate would not only provide information regarding the quantity of protein entering the United States, but would also provide a profile of low- and high-value MPC importers. This is critical for market analysis, since it is the lower valued MPC imports that more directly displaces US-produced skim milk powder.
Key Words: harmonized tariff schedule • milk protein concentrates • tariff rate quota
Abbreviation key: CIF = cost, insurance, and freight, FOB = free on board, MPC = milk protein concentrates, NMPF = National Milk Producers Federation, HTS = harmonized tariff schedule, WTO = world trade organization
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