14 August 2007

2 minute read

North America

The firm, which used the IFT expo in Chicago earlier this month to present its technologies to the industry, claims these can offer manufacturers "substantial" cost reductions, and "predictable, controlled" costs.

Its specialty starches, such as N-Creamer SRI, Novation and Gel 'N' Melt products, can be used to replace MSNF (milk solids non-fat), milk fat and caseinate, said the firm.

The price of dairy ingredients has skyrocketed in the past year, resulting in a knock-on effect on costs for both manufacturers and consumers alike.

Reasons for the increase include a tighter supply resulting from drought conditions in New Zealand and Australia - two major regions for the sourcing of dairy ingredients - as well as the increased global use of milk as a protein source. In addition, the sector has been hit by the recent elimination of EU export subsidies and an increase in the cost of feeding cows due to the re-channeling of agricultural commodities into the biofuel sector.

From May 2006 to May 2007, dairy prices have increased on the low end by 10 percent for some whey protein concentrates (from $1.90/lb to up to $2.10/lb). On the high end, non-fat dry milk prices have shot up 125 percent (from $0.82/lb to up to $1.85/lb).

Prices have increased for MSNF by 60 percent ($0.80/lb to $1.28/lb), for butterfat by 22 percent ($1.18/lb to $1.44/lb), for casein by up to 23 percent ($3.02/lb to up to $3.70/lb), and for caseinate by 41 percent ($3.20/lb to $4.50/lb).

Industry experts have predicted that these prices will remain high for at least one to two years.

Source: foodnavigator.com