2012 Dairy Products Utilization & Production Trends

Transcription

1 2012 Dairy Products Utilization & Production Trends

2 Table of Contents I. EXECUTIVE SUMMARY 6 II. UTILIZATION A. Dry Milk Products Utilization Compilation of Dry Milk Utilization Data 15 Nonfat Dry Milk Domestic Sales in Relation to Production, 2012 & Nonfat Dry Milk Four Year Comparison of Domestic Sales by End-Use, Domestic Sales of Nonfat Dry Milk (pie chart) 16 Four Year Comparison of Domestic Sales of Nonfat Dry Milk - Dairy, Domestic Sales of Nonfat Dry Milk - Dairy (pie chart) 17 Supply and Distribution of Dry Whole Milk, Dry Whole Milk Four Year Comparison of Domestic Sales by End-Use, Domestic Sales of Dry Whole Milk (pie chart) 18 Supply and Distribution of Dry Buttermilk, Dry Buttermilk Four Year Comparison of Domestic Sales by End-Use, Domestic Sales of Dry Buttermilk (pie chart) 19 Supply and Distribution of Milk Protein Concentrate, Milk Protein Concentrate Domestic Sales by End-Use, Domestic Sales of Milk Protein Concentrate (pie chart) 20 Utilization of Condensed Milk Solids, 2012 & Utilization of Condensed Milk Solids, 2012 & 2011 (bar graph) 21 Utilization of Dry Milk Products in Animal Feeds B. Whey Products Utilization Compilation of Whey Utilization Data 25 Utilization of Concentrated Whey in Human Foods, Domestic Sales of Concentrated Whey (pie chart) 26 Utilization of Dry Whey in Human Foods, Utilization of Dry Whey in Human Foods (pie chart) Export Sales of Dry Whey 27 Utilization of Whey Protein Concentrate in Human Foods, Utilization of Whey Protein Concentrate in Human Foods (pie chart) Export Sales of Whey Protein Concentrate 28 Utilization of Whey Protein Concentrate in Human Foods (25% %), Utilization of Whey Protein Concentrate (25% %) in Human Foods (pie chart) 29 Utilization of Whey Protein Concentrate in Human Foods (50% %), Utilization of Whey Protein Concentrate (50% %) in Human Foods (pie chart) 30 Utilization of Whey Protein Isolate in Human Foods, Utilization of Whey Protein Isolate in Human Foods (pie chart) Export Sales of Whey Protein Isolate 31 Utilization of Reduced Lactose & Reduced Minerals Whey in Human Foods, Utilization of Reduced Lactose & Reduced Minerals Whey in Human Foods (pie chart) 32 Utilization of Lactose in Human Foods, Utilization of Lactose in Human Foods (pie chart) Export Sales of Lactose 33 Utilization of Whey Permeate in Human Foods,

3 2012 Utilization of Whey Permeate in Human Foods (pie chart) 34 Utilization of Whey & Whey Products in Animal Feeds, Whey Products Summary of Domestic Sales by Distribution Outlet, Sales by Whey Products (bar graph) 36 III. PRODUCTION A. Dry Milk Production Nonfat Dry Milk Production, Disappearance and Consumption, Monthly Production of Dry Milks, Production of Dry Milks (pie chart) 40 Monthly Production of Dry Milks, Production of Dry Milks (pie chart) 41 Production of Dry Milks, Four Year Comparison of Dry Milks Production, (bar graph) 42 Nonfat Dry Milk Manufactured in the U.S., (bar graph) 42 B. Whey & Lactose Production Estimated U.S. Fluid Whey and Whey Solids Production (by type) and Resulting Quantity of Whey Solids Further Processed, Monthly Production of Whey & Whey Products, Production of Whey & Whey Products (pie chart) 46 Monthly Production of Whey & Whey Products, Production of Whey & Whey Products (pie chart) 47 Production of Whey & Whey Products, Four Year Comparison of U.S. Whey Products Production, (bar graph) 48 Dry Whey Manufactured in the U.S., (bar graph) 49 Whey Protein Concentrate Manufactured in the U.S., (bar graph) 49 Lactose Manufactured in the U.S., (bar graph) 49 U.S. Dry Whey Production, C. Cheese Production Monthly Production of Cheese, Production of Cheese (pie chart) 53 Monthly Production of Cheese, Production of Cheese (pie chart) 54 Production of Cheese, Four Year Comparison of Cheese Production, (bar graph) 55 Production of Cheese, by State, 2012 & Production of Cheese, by State, 2012 & 2011 (pie chart) 56 D. Miscellaneous Production Data Number of Milk Cows, Production per Cow and Milk Production, Milk Production, (line graph) 59 Milk Production in the Ten Largest Dairy States, Top Five Largest Dairy States (bar graph) 60 Production of Domestic Dry Milk and Whey Products and Imports of Casein,

4 IV. U.S. EXPORTS Dairy Products - by Country, 2012 (pie chart) 63 Dairy Products, 2012 v (bar graph) 63 All Dry Whey, Dry Sweet Whey, All Dry Whey - by Type, 2012 (pie chart) 66 Dry Sweet Whey, 2012 v (bar graph) 66 Whey Protein Concentrate, Whey Protein Concentrate, 2012 v (bar graph) 68 High Value Whey Proteins (>80%), 2012 v (bar graph) 68 Whey Proteins, 2012 v (bar graph) 68 Lactose, Lactose, 2012 v (bar graph) 70 Cheese, 2012 v (bar graph) 70 SMP/NDM, SMP/NDM, 2012 v (bar graph) 72 Butter, 2012 v (bar graph) 72 Whole Milk Powder, Fluid Milk & Cream, Fluid Milk & Cream, 2012 v (bar graph) 75 Ice Cream, 2012 v (bar graph) 75 Butter, Cheese - All types, Ice Cream, Yogurt, Anhydrous Milkfat, Milk Albumin (WPI), V. PRODUCT DEFINITIONS Milk Products Definitions 83 Whey Products Definitions 84 VI. ADPI INFORMATION & MEETINGS About the American Dairy Products Institute 87 Upcoming Conferences/Seminar 88 Jim Page Memorial Scholarship 89 4

5

6 Executive Summary 2012 DAIRY PRODUCTS UTILIZATION & PRODUCTION TRENDS EXECUTIVE SUMMARY: Milk Production & Milk Solids Disposition U.S. Milk Production of billion pounds increased 2.08% in 2012 over the previous year. +0.4% in cow numbers +1.6% in production per cow 205, , , , , , , , , ,000 U.S. Milk Production (Million Pounds) Total milk solids produced in 2012 equaled billion pounds. Final Disposition of Milk Solids in the U.S. in 2012 Total of 25.2 billion pounds of milk solids While nearly 50% of these solids went into Fluid Milk and Cheese Products, Dry and Condensed Milk Products accounted for 3.24 billion pounds of these solids, with whey products accounting for another 3.62 billion pounds of solids. The following utilization map tracks the estimated final disposition of the 25.2 billion pounds milk solids produced in the U.S. in % 4% 6% 4% 3.24 billion lbs 13% 14% 3.62 billion lbs 26% 23% Fluid milk Cheese Whey Products Dry & Cond. Milk Products Frozen Products Butter Other Cultured Products Other 6

7 2012 Milk Solids Utilization Map (Est.) (Thousand Pounds of Milk Solids) Raw Milk 25,172,000 Cheese/Whey 10,800,000 Frozen 1,023,000 Cultured 1,060,000 Fluid 6,573,000 Other 2,421,742 Powder/Butter 4,764,121 Cheese 5,700,000 Whey 3,620,000 Butter 1,527,000 Dry Milk 2,409,864 Cond. Milk 693,725 Buttermilk 133,532 Dry Whey 998,825 Lactose 1,026,126 Permeate 900,000 Whey Prot. 505,890 Mod. Whey 89,740 Conc. Whey 99,556 NFDM 1,764,450 Sweetened 40,500 Cond. BM 24,400 WPC ,043 SMP 380,672 Unsweetend 507,225 BM Powder 109,132 WPC ,041 Dry Skim 9,972 Canned 146,000 WPI 64,806 WMP 58,132 MPC 102,318 Milk Perm 94, Milk-Based Dairy Ingredients Production: Total 3.24 Billion Lbs NFDM: Billion Lbs SMP:.381 Dry Skim:.010 WMP:.058 MPC:.102 Perm:.095 BMP:.109 Cond BM:.024 Cond Milk: Milk-based Dairy Ingredient Production (Est.) 5% 0% 1% 1% 3% 3% 3% 2% 16% 12% NFDM SMP WMP MPC/MPI Milk Permeate Buttermilk Powder 54% Cond. Buttermilk Sweetened Condensed Milk Unsweetened Condensed Milk Canned Milk Dry Skim 7

8 2012 Whey-Based Dairy Ingredients Production: Total 3.62 Billion Lbs Dry Whey:.999 Billion Lbs Lactose: Permeate:.900 WPC35:.237 WPC80:.204 WPI:.065 Mod whey:.090 Cond whey:.100 6% 25% 6% 2012 Whey-Based Dairy Ingredient Production (Est.) Dry Whey 2% 3% 2% 28% 28% Lactose Permeate WPC35 WPC80 WPI Modified Whey Concentrated Whey EXECUTIVE SUMMARY: Milk-Based & Whey-Based Dairy Ingredients The following are highlights of Dry Milk Products, Whey and modified whey production and major end-use markets for the year ending December 31, 2012: TOTAL MILK-BASED DAIRY INGREDIENTS Total USDA reported production of milk-based dairy ingredients for 2012 was 3,234.0 million pounds (including an estimated 94.5 million pounds of Milk Permeate), an increase of million pounds (11.1%) from Production of the various dry & condensed milk products in 2012 (in millions of pounds and percent difference from 2011) was: o Nonfat Dry Milk, 1,764.5 (+17.7%) o Skim Milk Powder, (-14.7%) o Dry Skim Milk (Animal Feed), 9.8 (+14.7%) 8

9 o Milk Protein Concentrate, (+8.3%) o Dry Whole Milk, 58.1 (-11.6%) o Dry Buttermilk & Buttermilk Product, (+9.0%) o Condensed & Evaporated Milk Solids, (+2.5%) o Condensed Buttermilk Solids, 24.4 (+6.1%) o Milk Permeate Solids (estimate), 94.5 NONFAT DRY MILK & SKIM MILK POWDER Total 2012 domestic commercial sales were 1,144.9 million pounds, an increase of million pounds, or 18.9% from The top five domestic end-uses of NDM, by volume, and the percent of the market each shared was: o Dairy Industry million pounds, 63.9% o Confectionery Industry million pounds, 18.7% o Baking Industry 77.9 million pounds, 6.8% o Nutraceuticals, Pharmaceuticals 30.9 million pounds, 2.7% o Prepared Dry Mixes & Dry Blend Manufacturers 30.9 million pounds, 2.7% Million Pounds 1, , , NDM Domestic Sales MILK PROTEIN CONCENTRATE Total domestic sales were million pounds The principal markets were: dairy industry, 59.7 million pounds; mainstream nutrition, 29.2 million pounds; sports beverages, 23.2 million pounds and sports powders, 17.7 million pounds. 9

10 DRY WHOLE MILK Total domestic sales were 18.2 million pounds, a decrease of 6.9 million pounds (27.5%) from The confectionery industry remained the principal market, utilizing 15.9 million pounds -- over 87.2% of the total dry whole milk sold domestically in DRY BUTTERMILK & BUTTERMILK PRODUCT Total domestic sales, reflecting both dry buttermilk and dry buttermilk product, were million pounds, an increase of 9.0 million pounds (9.1%) from The principal markets were: dairy industry, 34.2 million pounds; baking industry, 17.3 million pounds and prepared dry mixes & dry blend manufacturers, 12.2 million pounds. CONDENSED MILK SOLIDS Total domestic sales, reflecting condensed skim milk, whole milk and buttermilk, were million pounds, an increase of 25.9 million pounds (4.8%) from The principal markets were: hard cheese, million pounds; frozen desserts & ice cream mixes, million pounds and cultured products, 75.5 million pounds. TOTAL WHEY-BASED DAIRY INGREDIENTS Total USDA reported production of whey-based dairy ingredients for 2012 was 3,620.1 million pounds (including an estimated 900 million pounds of Whey Permeate), an increase of 31.4 million pounds (1.2%) from Production of the various whey products in 2012 (in millions of pounds and percent difference from 2011) was: o Concentrated Whey Solids, 99.6 (+0.9%) o Dry Whey, (-1.1%) o Reduced Lactose & Reduced Minerals Whey, 89.7 (+1.7%) o Whey Protein Concentrate (Total), (+2.4%) o Whey Protein Concentrate (25.0%-49.9%), (-1.8%) o Whey Protein Concentrate (50.0%-89.9%), (+7.7%) o Whey Protein Isolate, 64.8 (+7.1%) o Whey Permeate (estimate), 900 o Lactose, 1,026.1 (+2.6%) 10

11 Whey-based dairy ingredients domestic sales for human food during 2012, were as follows: o Concentrated Whey, 76.4 million pounds o Dry Whey, million pounds o Whey Protein Concentrate (Total), million pounds o Whey Protein Concentrate ( %), 67.6 million pounds o Whey Protein Concentrate (50.0%-89.9%), 69.2 million pounds o Whey Protein Isolate, 25.5 million pounds o Whey Permeate, 12.9 million pounds o Reduced Lactose & Reduced Minerals Whey, 29.4 million pounds o Lactose, million pounds The whey-based dairy ingredients reported as being utilized domestically in human foods in 2012 totaled million pounds (948.4 million pounds in 2011), an increase of 3.0%. Whey-based dairy ingredients reported sold domestically for use in animal feed totaled million pounds in 2012 (488.7million pounds in 2011), a decrease of 2.1%. 11

12 Major end-use categories, by product, were: o Concentrated Whey (solids basis) Dairy Industry 42.0 million pounds Confectionery Industry 14.3 million pounds Institutional Use 11.5 million pounds o Dry Whey Dairy Industry 90.4 million pounds Confectionery Industry 89.3 million pounds Prepared Dry Mixes & Dry Blends 72.4 million pounds Baking Industry 32.9 million pounds o Whey Protein Concentrate (Total) Prepared Dry Mixes & Dry Blends 25.6 million pounds Infant Formulas 22.6 million pounds Sports Beverages 22.6 million pounds Dairy Industry 17.5 million pounds o Whey Protein Concentrate (25.0%-49.9%) Prepared Dry Mixes & Dry Blends 16.4 million pounds Infant Formulas 16.3 million pounds Dairy Industry 10.5 million pounds Baking Industry 6.5 million pounds o Whey Protein Concentrate (50.0%-89.9%) Sports Beverages 20.2 million pounds Sports Powders 17.1 million pounds Prepared Dry Mixes & Dry Blends 9.2 million pounds Dairy Industry 7.0 million pounds o Whey Protein Isolate Sports Powders 14.0 million pounds Prepared Dry Mixes & Dry Blends 5.0 million pounds o Whey Permeate Prepared Dry Mixes & Dry Blends 9.8 million pounds Dairy Industry 1.5 million pounds o Reduced Lactose & Reduced Minerals Whey Confectionery Industry 12.0 million pounds Baking Industry 6.3 million pounds Dairy Industry 1.6 million pounds 12

13 o Lactose Confectionery Industry million pounds Infant Formulas 62.2 million pounds Dairy Industry 25.0 million pounds Nutraceuticals, Pharmaceuticals, Special Dietary Use 22.9 million pounds o Whey Solids Used in Animal Feeds Dairy/Calf/Cattle Feeds 86.7 million pounds Swine Feeds 69.4 million pounds All Other Feeds million pounds 13

14 DRY MILK PRODUCTS UTILIZATION 14

15 Dry Milk Utilization Data Compilation of Dry Milk Utilization Data This 2012 compilation of dry and condensed milk utilization represents the 65 th annual industry-wide survey of end-uses for dry milk products. To the best of our knowledge, this Survey represents the only comprehensive analysis of how dry milk products are ultimately utilized in the commercial marketplace. Members of the American Dairy Products Institute, other cooperating processors and distributors of dry milk products participated in this Survey, reflecting approximately 88% of the total domestic distribution. With such comprehensive industry coverage, projections have been made from the survey data to the total industry. This data is intended to indicate market patterns and serve as a guide in directing promotional efforts to continue the expansion of commercial markets. The American Dairy Products Institute expresses its sincere appreciation to all who assisted by assembling information and reporting the same to make this publication a useful marketing tool. Information of interest to all condensed and dry milk processors, marketers/distributors and users is included in this 2012 publication. Such information presents a more complete picture of the manufactured milk products industry by providing an insight into supply-demand patterns and their relationship to overall marketing activities. Continued market expansion by the development of new uses for the various condensed and dry milk products is necessary for growing this segment of the dairy industry and reflects an ongoing purpose of the American Dairy Products Institute. Copyright 2013 by American Dairy Products Institute Printed in U.S.A 15

16 Nonfat Dry Milk & SMP Utilization Domestic Sales in Relation To Production 2012 & 2011 (millions of pounds) % % Production of Nonfat Dry Milk & SMP 2, ,945.5 Adjustments for Commercial Stocks (17.5) (20.8) Plus USDA Sales Plus Imports Total Supply 2, % 1, % Total USDA & DPPSP Purchases Shipments to Territories Commercial Exports Total Government Purchases, Exports % % Net Domestic Sales 3 1, % % 1 Revised in accordance with USDA figures. 2 Industry Estimate. 3 Reflects total non-government domestic distribution, but doesn't include NDM used in school lunches. Four Year Comparison of Domestic End-Uses of Nonfat Dry Milk (millions of pounds) Change Mil. Lbs. Percent Dairy Industry % % % % % Confectionery Industry % % % % % Baking Industry % % % % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % % % % Prepared Dry Mixes & Dry Blends % % % % % Beverage Manufacturers % % % % % Infant Formulas % % % % % Pudding/Mousse % % % % % Dessert Toppings % % % % % Institutional Use % % % % % Margarine Manufacturers % % % % % Soup Manufacturers % % % % % Meat Industry % % % % % Animal Feed % % % % % All Other Uses % % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % 1, % % Government & Export Sales % TOTAL SALES 1, , , , % Highlights: Total Production 2,145,121,000 pounds - an increase of million pounds, or 10.3% from Domestic Nonfat Dry Milk Utilization increased 18.9% to 1,144.9 million pounds from in The Dairy Industry remained the primary use utilizing 63.9% followed by the Confectionery Industry (18.7%), Baking Industry (6.8%) Prepared Dry Mixes & Dry Blends and the Nutraceuticals, Pharmaceuticals, Special Dietary Use (2.7%). 1 Revised Baking Industry 6.8% Nutraceuticals, Pharmaceuticals, Special Dietary Use 2.7% All Other Uses 7.9% Confectionery Industry 18.7% Dairy Industry 63.9% 16

17 Nonfat Dry Milk Utilization Highlights: Domestic Nonfat Dry Milk Utilization in the Dairy Industry increased 55.7% to million pounds from in Hard Cheese remained the primary use utilizing 46.5% followed by Frozen Desserts (8.7%), Fluid Milk Fortification & Dry Mixes (8.7%) and Cultured Products (4.1%). Four Year Comparison of Domestic End-Uses in Dairy (millions of pounds) Change Mil. Lbs. Percent Hard Cheese % % % % % Frozen Desserts % % % % % Fluid Milk Fortification & Dry Mixes % % % % % Cultured Products % % % % % Dry Dairy Blends % % % % % Processed Cheese % % % % % Sales of Packaged NDM % % % % % Cottage & Cream Cheese % % % % % Sales For All Other Dairy Uses % % % % % TOTAL DOMESTIC SALES % % % % % 1 Revised 2012 Domestic End-Uses in Dairy Sales For All Other Dairy Uses 32.8% Hard Cheese 46.5% Cultured Products 4.1% Frozen Desserts 8.7% Fluid Milk Fortification & Dry Mixes 7.9% 17

18 Dry Whole Milk Supply & Distribution (millions of pounds) Change Mil. Lbs. Percent Production % Change in Manufacturers' Stocks (1.9) % Imports % Total Distributed % Total Commercial & USDA Exports % Less Shipments to Territories % NET DOMESTIC SALES % Four Year Comparison of Domestic End-Uses (millions of pounds) Change Mil. Lbs. Percent Confectionery Industry % % % % % Dairy Industry % % % % % Dessert Toppings % % % % % Infant Formulas % % % % % Packaged for Retail Use % % % % % Prepared Dry Mixes & Dry Blends % % % % % Baking Industry % % % % % Hot Cocoa % % % % % Institutional Use % % % % % Dry Blends % % % % % Animal Feed % % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % % Government & Export Sales TOTAL SALES Highlights: Total Production 58.1 million pounds - a decrease of 7.7 million pounds, or 11.7% from Domestic Dry Whole Milk Utilization decreased 27.5% to 18.2 million pounds from 25.1 in The Confectionery Industry remained the primary use utilizing 87.3% followed by the Dairy Industry (5.3%), Dessert Toppings (2.1%) and Infant Formulas (1.3%). 1 Revised 2 Estimate 3 Processed originally for human consumption Dessert Toppings 2.2% Dairy Industry 5.5% Infant Formulas 1.1% All Other Uses 3.8% Confectionery Industry 87.4% 18

19 Dry Buttermilk Highlights: Total Production million pounds - an increase of 9.0 million pounds, or 9.1% from Domestic Dry Buttermilk Utilization increased 9.1% to million pounds from 98.9 in The Dairy Industry remained the primary use utilizing 31.7% followed by the Baking Industry 16.0%), Prepared Dry Mixes & Dry Belnds 11.3%) and the Confectionery Industry 1.5%). Supply & Distribution (millions of pounds) Change Mil. Lbs. Percent Production % Less Quantity Not Produced for Human Food % NET DISTRIBUTED FOR HUMAN FOOD % Four Year Comparison of Domestic End-Uses (millions of pounds) Change Mil. Lbs. Percent Dairy Industry % % % % % Baking Industry % % % % % Prepared Dry Mixes & Dry Blends % % % % % Confectionery Industry % % % % % Dessert Toppings % % % % % Institutional Use % % % % % Animal Feed % % % % % All Other Uses % % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % % 1 Revised 2 Includes Dry Buttermilk and Dry Buttermilk Product, reported without differentiation 3 Processed originally for human consumption. All Other Uses 39.5% Dairy Industry 31.7% Prepared Dry Mixes & Dry Blends 11.3% Baking Industry 16.0% Confectionery Industry 1.5% 19

20 Milk Protein Concentrate Utilization Supply & Distribution 2012 (millions of pounds) 2012 Production of Milk Protein Concentrate Plus Imports Total Supply Less Commercial Exports (est.) 68.3 Net Domestic Sales Highlights: The Dairy Industry was the primary use utilizing 44.2% followed by Mainstream Nutrition (21.6%), Sports Beverages (17.2%) and Sports Powders (13.1%). Domestic End-Uses (millions of pounds) 2012 Dairy Industry % Mainstream Nutrition % Sports Beverages % Sports Powders % Beverage Manufacturers % Baking Industry % Prepared Dry Mixes & Dry Blends % Animal Feed % TOTAL DOMESTIC NON-GOVERNMENT USE % All Other Uses 3.9% Sports Beverages 17.2% Sports Powders 13.1% Dairy Industry 44.2% Mainstream Nutrition 21.6% 20

21 Condensed Milk Solids Utilization 1 Two Year Comparison of End-Uses (millions of pounds of solids) Dairy Industry NONFAT MILK WHOLE MILK BUTTERMILK NONFAT MILK WHOLE MILK BUTTERMILK Frozen Desserts, Ice Cream Mixes % % % % % % Hard Cheese % % % % % % Cultured Products % % % % % % Fluid Milk Fortification % % % % % % Cottage & Cream Cheese % % % % % % Processed Cheese % % % % % % Other % % % % % % TOTAL % % % % % % Wet Blends Bakery Industry % % % % % % Infant Formulas % % % % % % Dairy Industry % % % % % % Mixes % % % % % % Confectionery Industry % % % % % % TOTAL % % % % % % Confectionery Industry % % % % % % TOTAL % % % % % % GRAND TOTAL Final marketable product only; doesn't include quantity used or shipped to another plant for further processing into dry products Nonfat Milk Whole Milk Buttermilk

22 Dry Milk Products Utilization Animal Feed 1 Three Year Comparison of End-Uses (millions of pounds) Change Mil. Lbs. Percent Dairy/Calf/Cattle Feeds Nonfat Dry Milk % % % % Dry Whole Milk % % % % Dry Buttermilk % % % % Condensed Nonfat Dry Milk % % % % Condensed Dry Whole Milk % % % % Swine Feeds Nonfat Dry Milk % % % % Dry Whole Milk % % % % Pet Feeds Nonfat Dry Milk % % % % Other Feeds Nonfat Dry Milk % % % % Dry Whole Milk % % % % Dry Buttermilk % % % % Feed Use, Undesignated % % % % TOTAL % % % % 1 Includes both direct & indirect sales 22

23

24 WHEY PRODUCTS UTILIZATION 24

25 Whey Utilization Data Compilation of Whey Utilization Data This 2011 compilation of whey products utilization represents the 38 th industry-wide survey of end-uses for whey products. To the best of our knowledge, this Survey represents the only comprehensive analysis of how whey products are ultimately utilized in the commercial marketplace. Members of the American Dairy Products Institute, other cooperating processors and resellers participated in this Survey reflecting approximately 90% of the USDA-reported whey solids processed during With such comprehensive industry coverage, projections have been made from the Census data to the total industry. This data is intended to indicate market patterns and serve as a guide in directing promotional efforts to continue the expansion of commercial markets for whey products. The American Dairy Products Institute expresses its sincere appreciation to all who assisted by assembling information and reporting the same to make this publication a useful tool in developing marketing and promotional programs. Information of interest to whey processors, marketers/distributors and users is included in this 2012 publication. The inclusion of such information presents a more complete picture of the whey products industry by providing an insight into supply-demand patterns and their relationship to overall marketing activities. Continued market expansion by the development of new uses for the various whey products is necessary for growing this segment of the dairy industry and reflects an ongoing purpose of the American Dairy Products Institute. Copyright 2013 by American Dairy Products Institute Printed in U.S.A 25

26 Concentrated Whey Solids Utilization Four Year Comparison of Domestic End-Uses in Food (millions of pounds) Change Mil. Lbs. Percent Dairy Industry % % % % % Confectionery Industry % % % % % Institutional Use % % % % % Prepared Dry Mixes & Dry Blends % % % % % Wet Blends % % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % % 1 Revised Highlights: Domestic Concentrated Whey Solids Utilization increased 3.8% to 76.4 million pounds from 72.6 in The Dairy Industry remained the primary use utilizing 55.0% followed by Confectionery Industry 18.7%, Institutional Use 15.0% and Prepared Dry Mixes and Dry Blends 11.3%. Institutional Use 15.0% Prepared Dry Mixes & Dry Blends 11.3% Confectionery Industry 18.7% Dairy Industry 55.0% 26

27 Dry Whey Utilization Highlights: Domestic Dry Whey Utilization increased 16.4% to million pounds from in The Dairy Industry remained the primary use utilizing 24.7% followed by Confectionery Industry (24.4%), Prepared Dry Mixes & Dry Blends (19.8%) and the Baking Industry (9.0%). Four Year Comparison of Domestic End-Uses in Food (millions of pounds) Change Mil. Lbs. Percent Dairy Industry % % % % % Confectionery Industry % % % % % Prepared Dry Mixes & Dry Blends % % % % % Baking Industry % % % % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % % % % Hot Cocoa Mixes % % % % % Institutional Use % % % % % Meat Industry % % % % % Margarine Manufacturers % % % % % Soup Manufacturers % % % % % All Other Uses % % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % % Government & Export Sales % TOTAL SALES % 1 Revised All Other Uses 22.1% Dairy Industry 24.7% Baking Industry 9.0% Prepared Dry Mixes & Dry Blends 19.8% Confectionery Industry 24.4% 2012 Export Sales (millions of pounds) Dairy Industry % Institutional Use % Baking Industry % Confectionery Industry % Prepared Dry Mixes & Dry Blends % All Other Uses % TOTAL EXPORT SALES % 27

28 Whey Protein Concentrate Utilization Four Year Comparison of Domestic End-Uses in Food (millions of pounds) Change Mil. Lbs. Percent Prepared Dry Mixes & Dry Blends % % % % % Infant Formulas % % % % % Sports Beverages % % % % % Dairy Industry % % % % % Sports Powders % % % % % Baking Industry % % % % % Beverage Manufacturers % % % % % Confectionery Industry % % % % % Sports Bars % % % % % Mainstream Nutrition % % % % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % % % % Wet Blends % % % % % Meat Industry % % % % % All Other Uses % % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % % Government & Export Sales % TOTAL SALES % 1 Revised All Other Uses 35.5% Prepared Dry Mixes & Dry Blends 18.7% Infant Formulas 16.5% Highlights: Domestic Whey Protein Concentrate Utilization decreased 10.8% to million pounds from in Prepared Dry Mixes and Dry Blends was the primary use utilizing 18.7% followed by Infant Formulas (16.5%), Sports Beverages (16.5%) and the Dairy Industry (12.8%). Dairy Industry 12.8% Sports Beverages 16.5% 2012 Export Sales (millions of pounds) Infant Formulas % Prepared Dry Mixes & Dry Blends % Dairy Industry % Baking Industry % Sports Beverages % Beverage Manufacturers % Sports Powders % SMP Standardization % Confectionery Industry % Mainstream Nutrition % Sports Bars % All Other Uses % TOTAL EXPORT SALES % 28

29 Whey Protein Concentrate Utilization Highlights: Domestic Whey Protein Concentrate (25.0%-49.9%) Utilization decreased 25.2% to 67.6 million pounds from 90.4 in Prepared Dry Mixes and Dry Blends was the primary use utilizing 24.3 followed by Infant Formulas (24.2%), Dairy Industry (15.5%) and the Baking Industry (9.6%). (25.0% % Protein) Three Year Comparison of Domestic End-Uses in Food (millions of pounds) Change Mil. Lbs. Percent Prepared Dry Mixes & Dry Blends % % % % Infant Formulas % % % % Dairy Industry % % % % Baking Industry % % % % Beverage Manufacturers % % % % Sports Beverages % % % % Confectionery Industry % % % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % % % Wet Blends % % % % All Other Uses % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % Government & Export Sales % TOTAL SALES % 1 Revised All Other Uses 26.4% Prepared Dry Mixes & Dry Blends 24.3% Baking Industry 9.6% Dairy Industry 15.5% Infant Formulas 24.2% 29

30 Whey Protein Concentrate Utilization (50.0% % Protein) Three Year Comparison of Domestic End-Uses in Food (millions of pounds) Change Mil. Lbs. Percent Sports Beverages % % % % Sports Powders % % % % Prepared Dry Mixes & Dry Blends % % % % Dairy Industry % % % % Infant Formulas % % % % Baking Industry % % % % Beverage Manufacturers % % % % Confectionery Industry % % % % Sports Bars % % % % Mainstream Nutrition % % % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % % % Wet Blends % % % % All Other Uses % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % Government & Export Sales % TOTAL SALES % Highlights: Domestic Whey Protein Concentrate (50.0%-89.9%) Utilization increased 9.8% to 69.2 million pounds from 63.0 in Sports Beverages was the primary use utilizing 29.1% followed by Sports Powders (24.8%), Prepared Dry Mixes & Dry Blends (13.2%) and the Dairy Industry (10.2%). 1 Revised All Other Uses 22.7% Sports Beverages 29.1% Dairy Industry 10.2% Prepared Dry Mixes & Dry Blends 13.2% Sports Powders 24.8% 30

31 Whey Protein Isolate Utilization Highlights: Domestic Whey Protein Isolate Utilization increased 14.9% to 25.5 million pounds from 22.2 in Sports Powders was the primary use utilizing 54.9% followed by Prepared Dry Mixes & Dry Blends (19.6%), Sports Beverages (8.6%) and Mainstream Nutrition (4.3%). Four Year Comparison of Domestic End-Uses in Food (millions of pounds) Change Mil. Lbs. Percent Sports Powders % % % % % Prepared Dry Mixes & Dry Blends % % % % % Sports Beverages % % % % % Mainstream Nutrition % % % % % Dairy Industry % % % % % Confectionery Industry % % % % % Sports Bars % % % % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % % % % Baking Industry % % % % % Infant Formulas % % % % % Sports Nutrition % % % % % Wet Blends % % % % % All Other Uses % % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % % Government & Export Sales % TOTAL SALES % 1 Revised Sports Beverages 8.6% Mainstream Nutrition 4.3% All Other Uses 12.6% Prepared Dry Mixes & Dry Blends 19.6% Sports Powders 54.9% 2012 Export Sales (millions of pounds) Sports Powders % Prepared Dry Mixes & Dry Blends % Infant Formulas % Dairy Industry % Confectionery Industry % Sports Beverages % Mainstream Nutrition % Sports Bars % All Other Uses % TOTAL EXPORT SALES % 31

32 Reduced Lactose & Reduced Minerals Utilization Four Year Comparison of Domestic End-Uses in Food (millions of pounds) Change Mil. Lbs. Percent Confectionery Industry % % % % % Baking Industry % % % % % Dairy Industry % % % % % Prepared Dry Mixes & Dry Blends % % % % % Infant Formulas % % % % % All Other Uses % % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % % 1 Revised Highlights: Domestic Reduced Lactose & Reduced Minerals Whey Utilization decreased 8.1% to 29.4 million pounds from 32.0 in The Confectionery Industry remained the primary use utilizing 40.8% followed by the Baking Industry 21.4%, the Dairy Industry 5.5% and Prepared Dry Mixes and Dry Blends 4.4%. All Other Uses 27.9% Confectionery Industry 40.8% Baking Industry 21.4% Prepared Dry Mixes & Dry Blends 4.4% Dairy Industry 5.5% 32

33 Lactose Utilization Highlights: Domestic Lactose Utilization decreased 2.5% to million pounds from in The Confectionery Industry remained the primary use utilizing 40.8% followed by Infant Formulas (18.9%), Dairy Industry (7.6%) and the Nutraceuticals, Pharmaceuticals (6.9%). Four Year Comparison of Domestic End-Uses in Food (millions of pounds) Change Mil. Lbs. Percent Confectionery Industry % % % % % Infant Formulas % % % % % Dairy Industry % % % % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % % % % Prepared Dry Mixes & Dry Blends % % % % % Baking Industry % % % % % Puddings, Desserts % % % % % Chemicals % % % % % All Other Uses % % % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % % % Government & Export Sales % TOTAL SALES , , % 1 Revised All Other Uses 25.8% Confectionery Industry 40.8% Nutraceuticals, Pharmaceuticals, Special Dietary Use 6.9% Dairy Industry 7.6% Infant Formulas 18.9% 2012 Export Sales (millions of pounds) Prepared Dry Mixes & Dry Blends SMP Standardization Confectionery Industry Nutraceuticals, Pharmaceuticals, Special Dietary Use Dairy Industry Baking Industry All Other Uses TOTAL EXPORT SALES % % % % % % % % 33

34 Whey Permeate Utilization Two Year Comparison of Domestic End-Uses in Food (millions of pounds) Change Mil. Lbs. Percent Prepared Dry Mixes & Dry Blends % % % Dairy Industry % % % Beverage Manufacturers % % % Baking Industry % % % Soup Manufacturers % % % Confectionery Industry % % % All Other Uses % % % TOTAL DOMESTIC NON-GOVERNMENT USE % % % 1 Revised Highlights: Domestic Whey Permeate Utilization decreased 17.3% to 12.9 million pounds from 15.6 in Prepared Dry Mixes and Dry Blends remained the primary use utilizing 76.0% followed by the Dairy Industry (11.6%), Beverage Manufacturers (4.7%) and the Baking Industry (2.3%). Beverage Manufacturers 4.7% Baking Industry 2.3% All Other Uses 5.4% Dairy Industry 11.6% Prepared Dry Mixes & Dry Blends 76.0% 34

35 Whey & Whey Products Utilization Animal Feed 1 Four Year Comparison of End-Uses (millions of pounds) Change Mil. Lbs. Percent Dairy/Calf/Cattle Feeds Concentrated Whey % % % % % Dried Whey % % % % % Dried Whey Product % % % % % Whey Protein Concentrate ( %) % Whey Protein Concentrate ( %) % Whey Protein Concentrate (Total) % % % % % Lactose % % % % % Whey Permeate % % % % % Whey Solids in Wet Blends % % % % % Swine Feeds Concentrated Whey % % % % % Dried Whey % % % % % Dried Whey Product % % % % % Whey Protein Concentrate ( %) % Whey Protein Concentrate ( %) % Whey Protein Concentrate (Total) % % % % % Lactose % % % % % Whey Permeate % % % % % Whey Solids in Wet Blends % % % % % Other Feeds Concentrated Whey % % % % % Dried Whey % % % % % Dried Whey Product % % % % % Whey Protein Concentrate ( %) % Whey Protein Concentrate ( %) % Whey Protein Concentrate (Total) % % % % % Lactose % % % % % Whey Permeate % % % % % Whey Solids in Wet Blends % % % % % Feed Use, Undesignated % % % % % TOTAL % % % % % 1 Includes both direct & indirect sales 35

36 Whey & Whey Products Utilization Summary Four Year Comparison of Domestic Sales by Distribution Outlet (millions of pounds) Human Food Concentrated Whey % % % % Dry Whey % % % % Reduced Lactose & Reduced Minerals Whey % % % % Whey Protein Concentrate % % % % Lactose % % % % Whey Permeate % % Whey Protein Isolate % % % % Total Human Food 1, % % % % Animal Feed Concentrated Whey % % % % Dried Whey % % % % Dried Whey Product % % % % Whey Protein Concentrate % % % % Lactose % % % % Whey Permeate % % % % Whey Solids in Wet Blends % % % % Feed Use, Undesignated % % % % Total Animal Feed % % % % GRAND TOTAL 1, , , , Revised 2012 DOMESTIC SALES BY WHEY PRODUCT Human Food Animal Feed 36

37

38 DRY MILK PRODUCTION 9 38

39 Nonfat Dry Milk Production, Total Disappearance, Domestic Consumption Per Capita Consumption Total Domestic Per Capita Production Disappearance Consumption Consumption Year (1,000 lbs.) (1,000,000 lbs.) (1,000,000 lbs.) (lb.) Fed to Total Animals ,160,690 1, ,314,270 1, ,400,455 1, ,499,902 1, ,160,670 1, ,390,033 1, ,284,143 1, ,056,797 1, ,722 1, , , , ,123 1, , ,215,600 1, ,232,994 1, ,061,771 1, , ,217,562 1, ,135,383 1, ,378,190 1, ,451,751 1, ,413,777 1, ,595,939 1, ,685,482 1, ,412,381 1, , ,210,313 1, , ,224,072 1, ,298,480 1, ,519,173 1, ,511,522 1, , ,562,518 1, ,499,477 1, ,764,449 1 Revised 2 Preliminary 39

40 Dry Milks Production Nonfat Skim Milk Milk Protein Dry Dry Dry Dry Milk Powder Concentrate Skim Milk Whole Milk Buttermilk January 152,085 40,928 9, ,547 12,763 February 171,394 18,635 9, ,444 10,784 March 189,227 12,638 10, ,213 10,168 April 190,728 18,699 12,057 1,201 4,397 9,529 May 193,362 14,675 11,077 1,073 5,278 8,846 June 168,394 25,366 9, ,649 7,597 July 140,169 37,240 5, ,964 6,988 August 106,014 40,346 5, ,799 6,787 September 84,498 43,620 5, ,156 6,727 October 95,064 45,664 5, ,453 8,595 November 115,854 44,723 8, ,206 8,691 December 157,660 38,138 9, ,026 11,657 Total 1,764, , ,318 9,792 58, ,132 GRAND TOTAL: 2,424,495 1 In thousands of pounds 2 Preliminary. Dry Skim Milk Milk Protein Concentrate Dry Whole Milk Dry Buttermilk Skim Milk Powder Nonfat Dry Milk 40

41 Dry Milks Production Nonfat Skim Milk Milk Protein Dry Dry Dry Dry Milk Powder Concentrate Skim Milk Whole Milk Buttermilk January 114,896 39,988 7, ,206 11,605 February 106,785 36,209 9, ,436 8,670 March 124,065 41,788 9, ,142 8,760 April 145,323 27,008 11, ,589 7,935 May 147,290 35,667 9, ,587 8,283 June 145,125 33,284 10, ,824 7,549 July 131,502 39,653 6, ,117 6,961 August 113,299 38,677 5, ,268 6,550 September 103,115 35,593 6, ,063 7,295 October 99,751 41,985 6, ,142 7,616 November 119,686 39,586 5, ,294 8,637 December 148,640 36,579 7, ,119 10,277 Total 1,499, ,017 94,489 8,535 65, ,138 GRAND TOTAL: 2,214,443 1 In thousands of pounds 2 Revised Dry Skim Milk Milk Protein Concentrate Dry Whole Milk Dry Buttermilk Skim Milk Powder Nonfat Dry Milk 41

42 Dry Milks Production 1 Type Nonfat Dry Milk 1,511,522 1,562,518 1,499,477 1,764,449 Skim Milk Powder 221, , , ,672 Milk Protein Concentrate 4 88,617 94, ,318 Dry Skim Milk 9,236 8,350 8,535 9,792 Dry Whole Milk 59,560 71,056 65,787 58,132 Dry Buttermilk 74,514 82, , ,132 GRAND TOTAL: 1,876,742 2,066,387 2,214,443 2,424,495 Highlights: Dry milks production increased 9.5% to 2,424,495 thousand pounds from 2,214,443 thousand pounds in In thousands of pounds 2 Revised 3 Preliminary 4 Not reported by USDA/NASS 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , , Nonfat Dry Milk increased 17.7%. Skim Milk Powder decreased 14.7%. Milk Protein Concentrate increased 8.3%. Dry Skim Milk increased 8.3%. Dry Whole Milk decreased 11.6%. Dry Buttermilk increased 9.0%. 42