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Consumer demand for protein is affecting nonfat dry milk prices

A dairy marketing specialist says consumer demand is influencing nonfat dry milk prices.

Katie Burgess with ever.ag tells Brownfield the global powder market is getting more competitive. “We’ve been a tale of two markets, and milk powders are very strong with the U.S. leading the way. U.S. milk powder prices are up to all-time highs, but on the flip side, and what we saw on the Global Dairy Trade auction was the fat side of things, so there’s plenty of fat out in the world, and prices have been moving a little bit lower.”

Burgess says for the last three years, there has been less production of nonfat dry milk in the U.S. “Part of that is because we’ve been making more cheese. Also, part of it is the demand for high-protein foods, so rather than making just a commodity milk powder, that milk is getting pulled into other things like ultrafiltered milk or milk protein concentrate.”

And, she says that high-protein products are in demand by consumers, bringing inventories lower and nonfat dry milk prices higher.