As the milk supply tightens, milk prices rise, and cheese manufacturing capacity expands, more milk dryers could run light. Cheese processors are typically willing to pay extra for milk to keep their vats full, but nonfat dry milk manufactures depend on cheap milk during times of surplus, according to Sarina Sharp, analyst with the Daily Dairy Report.
“In the absence of excess milk—like we are seeing today—the combined production of nonfat dry milk and skim milk powder tends to lag production of other dairy products,” Sharp said.
For instance, in the January through June period, combined output of nonfat dry milk and skim milk powder declined 15.2%, compared to the same period a year earlier.
By FRAN HOWARD
August 8, 2024
Comments