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Strong Growth in End Use Industries to Drive the Global Demands

Milk protein concentrate/isolate (MPC/MPI) is a concentrated or an isolated form of milk protein via a process called ultrafiltration. During this process excess fluid, fats and carbs are either evaporated or filtered out leaving unadulterated milk proteins. Milk as a stand-alone protein is believed to be nutritionally complete, high quality and very bioavailable.  

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Milk protein find numerous application such as in the sports nutrition market, manufacturers that formulate with MPC and MPI are providing their end-users not only the benefit of the whey protein component, but also the staying power and long-term delivery of amino acids from the casein. For incorporation into weight loss products the casein component helps to aid in end-user satiety. Whey-based beverages are quickly digested; thus, they can be effectively incorporated into functional foods. Since MPC & MPI are ultra-filtered to concentrate protein and decrease carbohydrates (i.e., lactose), food manufacturers are open to add other types of carbohydrates in their formulations, especially those rich in dietary fibers to help synergistically aid in satiety and enhanced mouthfeel.

Other dairy ingredients such as skimmed milk powder and full cream milk powder, are exploited for their intrinsic functional properties for application as a food ingredient in several “value‐added foods” such as confectionery, bakery, and meat products. Whole milk powders used in reconstituted dairy products such as yoghurt and milk drinks, but also as a source of fat and non-fat milk solids in confectionery and baked goods. The powder can be fortified with vitamins, in order to be repacked for direct consumer use in milk beverages, homemade yoghurt, coffee and tea whitener.

Key insights & trends

Amid the spread of Covid-19 pandemic, consumers are expanding their definition of healthy products to include those that are good for both themselves and the planet. Dairy and whey-derived proteins fall among clean label solutions to replace additives such as stabilizers, thickening and setting agents and emulsifiers due to which their use in food manufacturing is rising steadily. Dairy ingredients find application in numerous end use applications which have very strong global market growth such as sports nutrition, bakery and confectioneries, infant formulas, and processed and functional foods markets. Further according to April 2021 article by “Dairy Global”, Westpac (New Zealand) has upgraded its 2021-2022 farmgate milk price forecast by 54 cents to USD 5.77 per kg milk solids. Increasing demand for milk from China throughout the pandemic pushed the global price higher and with New Zealand exporting up to 96% of its dairy product, farmers got a real boost in recent times. The Australian average farm gate milk price was forecasted to increase by 2% to USD 0.38 per liter in 2021-2022, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). Thus, these global price rises are further increase the market value for dairy ingredients.

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