Fat Content and Composition of Animal Products Proceedings of a Symposium (1976) / Chapter Skim
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Market Implications of Changing Fat Content of Milk and Dairy Products
Market Implications of Changing Fat Content of Milk and Dairy Products
Pages 189-199
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From page 189... ...
or Are market implications causing the changing fat content of milk and dairy products? The distinction is important if the former is true, the drop in fat content of milk and dairy products will stop when the dairy industry collectively decides it should.
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From page 190... ...
FDA standards requiring a minimum of solids-not-fat content of 8.25% in whole, low-fat, and skim milk, in its final form for sale, shipped in interstate commerce, and requiring fluid milk products containing 10% solid-not-fat to be labeled "protein fortified," went into effect December 31, 1974. In the past there were no federal standards for minimum solids-not-fat content of fluid mink or solids-not-fat content required in fluid milk to use the term "protein fortified." These new standards will likely increase the quantity of solids-not-fat marketed in fluid form and also the importance of the solids-not-fat portion of milk compared to the milk-fat portion.
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From page 191... ...
Protein is therefore being stressed, and milk is one of the best sources of protein a solid-not-fat constituent in milk. New federal nutritional standards require listing on food and milk packages the percent of minimum daily protein requirements provided by a unit of that food.
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From page 192... ...
Per capita sales of low-fat milk in particular are increasing sensationally-up one and a half times since 1953, while fluid whole milk sales are down one fourth. Consumers are demanding more and more skim and modified skim milk and less and less fluid whole milk, resulting in a reduction in the average fat content of milk sold and a decrease in the quantity of fat sold.
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From page 193... ...
The increase in per capita sales of low fat and high solids-not-fat dairy items and decrease in per capita sales of high-fat items is likely to continue. In light of past and projected future consumption trends, the dairy industry will need to place greater emphasis on low-fat and higher solids-not-fat dairy products.
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From page 194... ...
Component pricing, taking into consideration both the value of variations in solids-not-fat as well as fat, is being advocated by some to correct this inequity to dairy farmers and also to encourage more solids-not-fat and less fat production, to more accurately reflect consumer demand preferences. Their contention is that milk has been priced on the basis of its other major variable constituent fat for 75 years, so why not also solids-not-fat protein.
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From page 195... ...
_ Therefore, protein content and hence product yields are lowest in May, when manufactured product production is highest. Ignoring component pricing has resulted in an upside-down situation lowest pro
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From page 196... ...
Protein content varies widely within the year, yet without protein pricing, no reflection of this is made in farmers' milk checks, and so there's no incentive for them to increase protein content when manufactured product production is highest.
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From page 197... ...
These added yields, plus the higher price plants can get for higher protein fluid milk and not having to add as much or any solids-not-fat to bottled milk, provide money for component pricing a "protein premium." Component pricing reflects higher yields in higher milk prices to farmers as protein content of milk increases. Present pricing procedures do not and are therefore felt to be inequitable to farmers, as well as not accurately reflecting nonfat values in milk.
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From page 198... ...
In addition to encouraging increased protein content in milk, which can be used in promotional campaigns, protein pricing plans for milk can also attract considerable attention to milk itself, which can aid in advertising campaigns. By stressing protein pricing to farmers, dairies could communicate better with consumers in promotional and merchandising campaigns.
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From page 199... ...
Cheese, although not low in fat, has a high solids-not-fat content, especially protein, and per capita sales of it are also increasing substantially-one half for American and cottage cheese, and one and one third for other cheese in the past two decades. Cheese has approximately 30% solids-not-fat and 25% protein on a volume basis-far above the solids-not-fat content of high-fat items such as butter with about 1 %; cream, 5 %, and fluid whole milk, 8.25 % .
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