Technology, Demand and Lost Data

Mark Stephenson, Ph.D.Cornell Program on Dairy Markets & Policy

Milk Components Have Been Recognized for a Long Time!

In 1905, a Mr. H.E. Cook wrote: “The experiments at the Wisconsin and New York State stations proved so conclusively that the fat content measured the cheese-making power of milk so much more accurately than the scales (cwt) alone, that we began paying on that basis in 1893.”

Food Scientists are Busy!

We have been separating milk into cream and skim fractions for many years

In the lab, membranes, ion exchange and other processes are now separating milk into many smaller fractions.– They are demonstrating technical feasibility– How much will it cost in a plant?– What is the market for the fractions?

Many Implications for “Milk Refineries”

Simple example–Separate casein and whey proteins from skim milk fraction.– Send whey fractions to fluid plant

• Whey protein is more digestible

– Send casein to cheese plant• Much higher yield• No whey to contaminate with salt and enzymes

and further process.

Many Implications for “Milk Refineries”

Simple example–Send only what a cheese plant needs to make cheese– No byproduct or waste stream– Where is optimal plant location?

Value Added Production

Milk has been a health delivery system for many years– Vitamin A

Nutriceuticals may be interesting– High CLA milk is being produced – Biotechnology can enable “harvest” of

products from milk

Implications for Regulation

Can the Federal Order system keep up?– Chasing fractions to their end use seems

impractical– Unlikely to have a spot market for these

fractions– Can we use a survey and product formula

approach to pricing

Implications for Structure

Where will the fractionation take place?– On farm– Butter/powder or cheese plants– New country milk stations(back to the

future)

Conclusions…

More questions than answers

Plants are already testing these ideas

Progressive farmers are ready for the next big opportunity

Some of the ideas will require education– New product buyers– Consumers