Friday, November 17, 2017
And The Winner Is.... - September 2016

By Kent Keller

For as long as many of us can remember, dry whey was the behemoth of USA whey products.  Then, in the 1970’s, a small portion of whey solids were fractionated to make whey protein concentrate.  The chart below shows that in the 1980’s whey protein concentrate production grew rapidly, 10-11% per year.  It appeared by the 1990’s there would be more whey solids fractionated than there would be whey solids dried.  Due to the rapid increase of cheese production, it was not until 2003 that fractionation of whey solids overtook drying of whey solids.  By 2011, lactose finally overtook dry whey as the largest volume whey product. 


The chart below from ADPI’S recently published “2014 Dairy Products Utilization and Production Trends” shows just how far the industry has progressed towards fractionating whey into its valuable constituents.

The extremely rapid growth of lactose production from 2009 to 2015, along with the worldwide malaise in commodities, dramatically depressed lactose prices.  The more recent strengthening of lactose prices indicates the production increases are now being absorbed by the market and additional production will be needed soon.  Historically, the lag time for bringing additional production online has resulted in skyrocketing lactose prices which, in turn, temporarily depressed lactose demand.

In the past, it was easy to increase lactose production.  There was plenty of raw material available given the diversion of permeate to land spreading.  Today, less and less permeate is being “dumped”; therefore, additional lactose production will have to come from permeate currently being channeled to animal feed.  Once that resource is exhausted, lactose will be able to command its true value to end users in the confectionary, infant formula and pharmaceutical markets.  

New manufacturing technologies for lactose manufacturing have been developed.  These new technologies make it possible to produce pharmaceutical grade lactose at the cost of producing edible grade lactose.  Lactose of such high purity will certainly expand lactose markets.

Lactose is not THE winner, but it certainly is one of the winners in whey processing.

Dairy Ingredients Used in Calf Milk Replacers - June 2016

By Jim Sullivan

A very significant volume of dairy ingredients is used in calf milk replacers in the US and throughout the world.

Definition of Milk Replacer:  Milk replacers are formulated feeds made from a variety of ingredients that provide the nutrient requirements for young calves. Most milk replacers are dry powders that have to be reconstituted to a liquid by mixing with water. There are also liquid milk replacers that are primarily used by some large veal raising and calf rearing ranches.

Types of Milk Replacers

Herd Calf Milk Replacers. These milk replacers are designed and fed to young heifer calves that are raised to enter the milking herd and young bull calves that are raised for beef.

Veal calf Milk Replacers.  Milk replacers formulated and fed to bull calves that are raised to produce veal meat.

Rationale for using Milk Replacers:  Milk replacers are typically used because this method of feeding the calves is lower in cost than feeding whole salable cow’s milk. Milk replacer powders also may offer convenience as they can be stored in a dry form rather than a perishable liquid. It is estimated that more than 70% of the calves in the US are fed milk replacers.

Protein ingredients commonly  used in calf Milk Replacers:

        Whey protein concentrate
        Dried skim milk
        Caseinates
        Dried whey
        Soy protein isolate
        Soy protein concentrate
        Modified wheat protein

Estimated size of US Milk Replacer Market:     Herd milk replacers: 110,000 tons per year              Veal calves: 110,000 tons per year

 

Large calf milk replacer manufacturers:

Herd Milk Replacers
American Calf – California
Calva Products -  Arizona
Dairy Manufacturers, Inc. – Texas
Esmico – Minnesota, Wisconsin
Land O’Lakes – Minnesota based
Lawley’s  - California
Merrick’s – Wisconsin based
Milk Products – Wisconsin
Milk Specialties Global – Minnesota based
PMT – Ontario, Canada
Royal Milc – Minnesota
TC Products - Wisconsin

Veal Milk Replacers:
Les Aliments Pro-Lacto –Quebec
Les Aliments Serval Canada-Quebec
Marcho Farms/Select Veal Feeds - Pennsylvania


Herd and Veal milk replacer manufacturers:
Buckeye Veal Services – Ohio
Grober, Inc – Ontario, Canada based
Les Aliments Pro-Lacto -  Quebec, Canada
Les Aliments Serval Canada – Quebec, Canada
Quality Feed, Inc, Wisconsin
Serval NRV, Inc. – Wisconsin
Stauss Feeds, Inc. - Wisconsin

The milk replacer industry is  an important market for dairy ingredients.

Dairy Market Outlook - May 2016

By Mike McCully

While cheese and milk powder prices are stuck near multi-year lows, parts of the whey complex are showing signs of life. Prices for WPC 80 have moved from $1.80-2.00 in the first half to asking prices of $2.30-2.50 in the second half of the year with optimistic projections of $2.75-3.00 by Q4. These prices and the market tone reflect a market that has rebalanced to favor sellers, at least for now. On the bullish side, production of high protein WPC in February and March was below year ago levels. However, last Thursday’s USDA Dairy Products report has sown confusion – it revised end of February stocks from 36 to nearly 51 million lbs, with a further increase to over 52 million lbs by March 31. Stocks had been moving lower this year, so the new numbers from USDA are puzzling to say the least.  

 

After months of stagnant prices, lactose has rallied, in relative terms, with US prices moving into the mid-$0.20’s and GDT prices sitting at $0.31. Production and stocks have both been lower in recent months, providing support for higher prices. However, the stocks data in last week’s Dairy Products report showed an abnormally large increase in March. In fact, the simple math using stocks, production, and export data doesn’t add up. Like the WPC data, there is a good probability this data will be revised in the next few months.     

 

All is not bullish in the whey complex though as the dry whey market remains bearish. March exports were weak – sharply below last year and down about 6 million lbs from February. Exports to China fell by about half from year ago. Stocks were up 7% in March vs. last year although production was down, illustrating weaker demand. US, NZ, and European dry whey prices are all around $0.24-0.25, which looks to be the prevailing price level for the next few months. 

 

For a complete dairy market outlook, go to http://themccullygroup.com/index.html

Dairy Ingredients are a Good Solution for Clean Label Products - March 2016

By K.J. Burrington

Clean label is one of the latest trends in new products.  Though clean label is not well defined, consumers would say they are looking for products that have few ingredients that are easy to recognize.  These consumers would say they want only natural flavors, colors, and sweeteners in the product and may even include organic, non-GMO and minimally processed as a part of their definition.

Dairy ingredients have one thing in common; they all originate from milk.  Our dairy industry has developed a wondrous list of nutritious ingredients such as nonfat dry milk, whole milk powder, milk protein concentrates and isolates, whey protein concentrates and isolates, milk and whey permeates, lactose, and of course butter.  Dried dairy ingredients contribute a long list of functional properties to foods including water binding, gelation, emulsification, whipping, and browning. There are good opportunities for them to replace hydrocolloids, emulsifiers, and starches in foods which typically have names that sound more chemical and are not easily understood by the typical consumer.

Butter is a wonderful alternative to hydrogenated vegetable fats and provides a better flavor with similar functionality for many food products. There will always be a functionality/cost consideration for product developers and clean label products are no exception.  As we introduce new dairy ingredients to the food industry though, we need to be cautious about the names that we choose for them.   It would be best to maintain our position as an industry that produces functional, nutritional ingredients that are also clean label. 

The “REAL” Story on FSMA Preventive Controls - Dairy Plant Primer - January 2016

By Allen Sayler

With the September 17th, 2015 formal release by the US Food & Drug Administration of the final requirements for the FSMA “Preventive Controls for Human Foods (PCHF),” the life of dairy processing plants, brokers of dairy ingredients and importers of dairy ingredients was changed forever.

The regulation is 928 pages long, but the actual requirements that directly impact dairy plants is much shorter (approximately 40 pages), still resulting in many of us going cross-eyed while trying to read and understand it.  In addition, there were significant new or modified requirements compared to the January 2013 proposed regulation and its September 2014 update.

In order to demystify this regulation and its impact on dairy processing plants, we have created a “Primer” that in a few pages summarizes the September 17, 2015 PCHF regulation.  FDA has committed to publishing a “Guideline” sometime in 2016 to also provide added clarity, but its availability may be too late for dairy plants that have to be in compliance by September 17, 2016.  It is strongly recommended that dairy plants conduct a thorough review of this “Primer”.

A complete outline of timelines, regulations and guidelines referring to: a Dairy Plant's Food Safety Plan, Preventive Controls Qualified Individual (PCQI), Employee Training & Qualifications and Specific Preventive Controls Requirements can be accessed by clicking here.

For more information on how to modify your plant’s food safety operations to become FSMA PCHF compliant, please contact Allen Sayler with the ADPI Center for Excellence (asayler@cfsrs.com), or call Dan Meyer, Technical Director for ADPI at (630) 530-8700 x224). Begin this process as soon as possible to ensure your plant is ready when the FDA investigator walks in to enforce the PCHF. 

3-A Sanitary Standards and Accepted Practices - December 2015

By Dan Meyer

3-A Sanitary Standards Inc. (3-A SSI) formulates sanitary standards and accepted practices for the sanitary design, fabrication, installation and cleanability of dairy and food equipment or systems used to handle, process and package consumable products where a high degree of sanitation is required. These sanitary standards and accepted practices are developed through the cooperative efforts of industry experts, including regulatory sanitarians, fabricators and processors. 3-A Sanitary Standards provide material specifications, design criteria and other necessary information for equipment types to satisfy public health concerns.


3-A Sanitary Standards are available for many equipment types, from fittings to silo tanks. The goal of 3-A SSI is to protect consumable products from contamination and to ensure that all product surfaces can be mechanically (CIP) cleaned or easily dismantled for manual cleaning.


3-A Accepted Practices cover a system, which is defined as a set of connected equipment and machinery that forms a whole or works together. In addition to the criteria for equipment, a practice may also provide specifications for sanitary installation and legal controls. 3-A criteria is universally accepted by equipment manufacturers, fabricators, users and sanitarians.

3-A Sanitary Standards Benefit the Entire Industry

For processors, conforming to 3-A Sanitary Standards means they are in compliance with applicable sanitary codes for equipment construction. Processors also can be assured that with equipment meeting 3-A Sanitary Standards, they can apply the most modern cleaning and sanitizing methods, materials and systems to in-plant operations. This increased efficiency in equipment cleaning means lower cleaning costs, especially labor costs. Inspections will present fewer problems when equipment complies with 3-A Sanitary Standards.


For equipment manufacturers, it means equipment fabricated in conformance to 3-A Sanitary Standards will receive universal acceptance from processors and sanitarians. Manufacturers can benefit by the development of standardized equipment to replace custom-made equipment with the resulting savings in tooling, dies, patterns and retrofitting to meet varying local requirements.


For regulatory sanitarians, the adoption and application of uniform design and construction principles has made equipment inspection more sophisticated and consistent. Regulatory sanitarians have been able to test and refine inspection procedures, thus maximizing time and efficiency. Regulatory professionals are able to apply sanitary principles pioneered by 3-A to all food handling equipment. Sanitary codes and guidelines issued by regulatory agencies for equipment are often based on 3-A Sanitary Standards. More importantly, regulatory professionals can have confidence in standards and the resulting equipment design that colleagues have had a major voice in developing.


For more information, please visit the 3-A website at www.3-A.org or contact Dan Meyer at dmeyer@adpi.org.

 

Dairy Risk Management - October 2015

by Mike McCully

Global dairy commodity prices dropped to multi-year lows in 2015 as supply growth outpaced demand. Strong domestic fundamentals have supported US cheese and butter prices above global prices, but milk powder and whey products have been caught in the downdraft of falling prices in Oceania and Europe. As supply and demand comes back into balance in 2016, dairy prices are expected to start moving higher, although the timing and magnitude are unknown. While each year is different, dairy price volatility is here to stay. As a result, managing dairy price risk is increasingly important for all segments of the supply chain.  

 

In simple terms, managing price risk is about protecting an expected profitable margin. It is not about trading for profit or speculating on market movements. However, a common problem at companies is for the buyer or risk manager to focus on locking in profitable margins while management is concerned about making or losing money on the hedge. For a risk management program to be successful, goals need to be established and agreed to by key stakeholders. In short, a company needs to adopt a risk management philosophy that is aligned with their business needs and risk tolerance. Therefore, it is important to have a risk management policy in place along with a framework on how the process will work. 

 

If a company can pass through commodity cost changes to their customers, then minimal coverage should be taken. But if a company can’t pass through commodity cost changes, then a coverage strategy should reflect this risk. To develop a commodity risk management strategy, first start with a perspective on prices in the future. At this time of year, the budget forecast for the upcoming year can be used. Compare the budget prices to what price can be hedged. If a hedge can be executed to lock in a cost at or below the budget, this may be a good opportunity to get some coverage in place. The price should also be compared to historical averages. If prices are near longer-term lows, then more coverage could be taken. Conversely, if prices are historically high, then less coverage could be taken, as there is a higher probability of prices declining. 

 

After the strategy is developed and approved by management, it is ready to execute. A strategy could be for a fixed price using futures, forward contracts, OTC’s, or inventory. It could also use options to establish floors, ceilings, or ranges of prices. More sophisticated strategies could combine both fixed price and options coverage. Until the last few years, liquidity was an issue for most dairy contracts at the CME Group. However, since 2013, volume and open interest for all dairy futures and options contracts have grown to a point where a full suite of dairy risk management products are available to buyers and sellers. 

 

While companies in other parts of the world are just learning about dairy risk management, the US dairy industry has over 20 years of experience with risk management tools. Farmers and processors in Europe are experiencing free market price volatility for the first time and are developing tools to manage this risk. New Zealand has a small, but growing dairy futures market, and Fonterra has started offering forward contracts to farmers. For the US, the evolution of the dairy futures markets has introduced some new dynamics into the dairy marketplace as futures and cash markets are becoming more interrelated. At some point, the dairy industry will move to price discovery off futures markets like other agricultural commodities. 

 

Commodity price volatility brings both opportunities and challenges. Companies should develop commodity risk management programs to help mitigate negative financial impacts and better manage margins. It is also important to provide adequate resources and staffing to successfully implement and maintain a commodity risk management program.  

Dairy ingredients in swine feed....a few facts - September 2015

By  Dr. Jim Sullivan


 A very significant portion of dried dairy permeate is used in swine feeds in the US and throughout the world. The dairy permeate is used only in the first dry feed (starter feed) that the baby pig consumes following weaning. Modern hog production facilities all over the world are weaning the baby pigs at a very young age. Many are weaning at approximately three weeks of age. The young pig that is weaned at this early age must have a source of lactose in the first dry feed. The baby pig's enzyme system is not yet geared up to digest the carbohydrate starch but is fully capable of digesting lactose. A baby pig will consume about 2.5 pounds of dried dairy permeate in its lifetime. 

Here are some facts about pork production.

     
The reproductive cycle of the sow. 
The gestation period of the sow is approximately 114 days. An easy way to remember this is "three months, three weeks and three days". 

 

Today most pigs are weaned at approximately 21 days of age. Pigs cannot be successfully weaned at this young age without a source of lactose in the starter feeds. 

 

After weaning the pigs will be fed starter diets for approximately 21 days. They will consume approximately 17.5 pounds of feed in the starter phase. The pigs will consume approximately 2.0 pounds of lactose (from 2.5 pounds of permeate) in starter phase. 

 

Following the starter phase the pig will be fed grower and finisher rations that contain no dairy ingredients. The sow will be re-bred about a week after weaning and the cycle will start over again. Today,well run swine operations in the US sows will produce approximately 24 pigs per year 

 

Let's look at some numbers: 

1,000 sows X 24 pigs/sow/year X 2.5 lbs. = 60,000 lbs. 

So when you read about a 1,000 sow operation, think about 30 tons of dried dairy permeate. 

 

There is great potential for increased dairy permeate use in swine feeds in Asia. Pork producers in that region are using much lower inclusion rates of lactose sources in their pig starter feeds.

It All Starts and Matures Through The Orchestration of Nature’s Wonder – Milk - August 2015

By Joseph A. O’Donnell, Ph.D. 

 

From too much rain all at once in the East to not enough rain in the West, environment remains the dominant subject of many discussions.  Environment encompasses all facets.  Air doesn’t fight with water, which doesn’t fight with heat and so on down the line.  Environment manifests harmony.  All systems work together to move forward in evolution.  This harmony does not imply a stress-free situation; quite the opposite.  Tension stands as the engine that agitates all in the system to move.   

 

Enough philosophy, let’s bring this down to our dairy world.  Especially noteworthy out here in California one finds great drama being played out in water rights.  Critics of dairy, i.e. those who are selling products that compete with dairy, hasten to point out the great consumption of water required to grow the alfalfa and the grain to feed the cows who produce the heifers who produce more cows who produce the milk.  Add that to the water required directly by the cows and the milk barn and all the rest of it.  Extending the discussion to the cheese/butter/powder plant usually gets ignored because the recycling of the “cow” water exemplifies water conservation in the entire food-processing world.  Bottom line here finds milk’s critics abandoning their old fuzzy nutrition polemics and now deride milk as a water waster.  

 

Let’s go back to that harmony concept I mentioned above.  Diet, like all of nature, represents a highly orchestrated, harmonious system where the tension among the components unlocks the value of each component.  Understanding even empirically how foods work together to deliver nutrition and health has led to the survival of human populations.  The classic example is corn and beans.  It is well understood that corn or beans as individual dietary components deliver more nutrition than either one alone.  (By the same logic, adding nutritionally superior dairy foods to almost any diet will raise the nutritional quality of that diet.)  Over time societies have worked out what foods work with each other for the benefit of the consumer.  However, let’s take a longer look into how we as humans digest our food.  Every day generates more information about gastrointestinal physiology especially in regards to microbial ecology.  The enzymes we produce in our pancreas and other organs do a good job of digesting our food – but not a complete job.  Why is it that at the end of our long small intestine where all those endogenously produced enzymes have been breaking down food components and absorbing them into the body we find this big bag of microbial bugs?  What’s with that?  Think about that orchestra again.  Not all the polysaccharides, lipids and proteins are entirely broken down in the small intestine.  These leftovers are now food for the bacteria in the colon.  The role of all those bacteria would take many more papers written by people smarter than I to elaborate but suffice to say that somehow those bugs are beneficial and not pathogenic.  In fact, they fight against invading pathogens.  The question is, “how did these particular bugs get there?” Read Article

 

Using Pre-Execution Communications to Improve Dairy Market Liquidity - July 2015

By Mike McCully

Dairy futures and options markets in the U.S. have evolved since the early 1990’s. Trading volume and market liquidity has increased as have the number of products to where the CME Group offers a suite of dairy products – class 3 milk, class 4 milk, cheese, dry whey, butter, and NFDM. In the last 2 years, market activity has improved to the point where all dairy products are relatively more liquid than they were in the past 20+ years. However, some market participants still have difficulty executing larger orders or at times when trading volume is lower. 

 

One solution to this problem is for market participants to engage in pre-execution communications with other market participants. This is a quick and easy way to find liquidity in the market and execute trades at times when liquidity is not evident. One party might not want to enter a large order over concern of how it could impact the market. At times, there are other parties with opposite positions that may have the same concern and also are not entering their order. In short, pre-execution communications can help you try to find someone to take the opposite side of your trade.  Read Complete Article

Do the Spring Ice Cream Recalls Identify Potential Operational Weakness in Dairy Plants?- June 2015

by Allen Sayler


The Spring of 2015 will be remembered in the dairy industry in some ways like September 11th, 2001, is remembered by many in the USA. Our innocence and confidence were both assaulted by the Blue Bell and shortly thereafter, the Jeni's Splendid Ice Cream recalls. At the late April's National Conference on Interstate Milk Shipments (NCIMS), the recall subject was the first topic of discussion, whether it was in a group of industry, state dairy regulators, FDA headquarters or Regional Milk Specialists or a mixed group of some or all these parts of the US dairy industry. It was clear that both state and FDA regulators intended to increase their sampling of ice cream products for the near future. 
 


For those of us in the dairy ingredient industry, Listeria is not usually our main biological concern; Salmonella is and in some ways, is more difficult to remove from the dairy plant environment. Based on news media reports and the FDA Form 483 Inspectional reports for two of the Blue Bell plants and the Jeni's Splendid Ice Cream plant, it appears that both plants may have had credible written operational programs. However in one case, apparent failures in equipment and facility cleaning and sanitizing tasks as well as employee food safety training may have contributed to the Listeria problem. In another case, FDA identified a number of environmental, operational and testing shortcoming that resulted in an inadequate response to the detection of Listeria and repeated higher levels of coliforms in finished products. 

 

In order to arrive at "Lessons Learned" that all dairy plant can benefit from, click here to view a cataloging of the various FDA observations and a short comment on how to address or avoid the problem.

 

The Cost of Research Innovation to the Dairy Industry - May 2015

by Dr. Craig J. Schroeder


To get a snapshot of new developments and trends that are occurring in the food industry world-wide, I follow the patent literature rather than the technical literature found in the scientific journals. Patent technology is generally more leading edge and pushes boundaries well beyond mainstream scientific thought with the primary drivers being business needs and resolution of an industry problem (i.e., "necessity is the mother of invention").  Over the last 5-6 years, I've noticed a disturbing decline in patent applications from major U.S. dairy manufacturers, which should be of concern to our industry. Patent numbers or frequency of applications are a strong indicator of the level of research investment for any industry and are especially important indicators for the health and long term growth of an industry segment; our dairy industry in this case. 

 
Review of the current patent literature is even more telling of the lack of dairy technology innovation in the U.S. There are significantly more patent applications from European dairy manufacturers than counterparts from North America. For example, Nestle' (through their research arm, Nestec) filed 84 new patent applications in the first quarter of this year alone. Nestle' has always been technologically focused, the major reason why today they are the largest and most credible food manufacturer world-wide. Japanese dairy companies continue to patent consistently in technology areas like enzymes, nutritionals, and interesting new products. U.S. dairy manufacturers are generating less intellectual property, as reflected in reduced numbers of patent applications over-all. On the flip side, the number of U.S. patent applications related to food safety is on the rise, likely the result of FSMA and food manufacturers protecting their bottom lines from huge liability claims. 

 
Another alarming concern to the U.S. dairy industry should be the steady reduction of basic dairy research funding over the last 5-10 years through the farmer check off program as administered through Dairy Management Inc. DMI has been the mainstay for basic dairy research funding, especially since the creation of the regional dairy research centers in the late 1980's. Dairy check off dollars can be directly linked to technical developments leading to improved methods of cheese manufacture, whey processing and whey applications developments, nutritional and health education, and other valuable contributions that have helped to expand industry offerings and provide improved returns to both manufacturers and dairy farmers. However, with dwindling research dollars available to the Dairy Centers, we're losing both valuable research and researchers because of a declining focus on basic dairy research.   More...

2015 NCIMS Grade "A" Conference - The 500 Year Storm that Never Was - May 2015

by Allen Sayler


The 2015 National Conference on Interstate Milk Shipments (NCIMS) was held April 24th - 29th in Portland, Oregon to consider 100 changes (proposals), with state delegates passing 49. Two sets of proposals had the potential to create significant divisions between the US Food & Drug Administration (FDA), the state dairy regulatory agencies and the dairy processing industry. This never happened as all parties worked very hard to find common ground on both subject areas. 

 

The first was to make changes in the Grade "A" dairy plant requirements so the Pasteurized Milk Ordinance (PMO) requirements would be closer the Food Safety Modernization Act's (FSMA's) proposed "Preventive Controls for Human Foods." This US Food & Drug Administration (FDA) proposed regulation has no exemption for Grade "A" dairy plants and will be published in final form at the end of August, 2015 with enforcement expected in late 2016. Some attending the Conference believed that FDA would demand that all of the Preventive Controls requirements would have to be added to the PMO for FDA to continue to accept the NCIMS Grade "A" program. 

 
 The other potentially controversial subject was the expansion of the Grade "A" program for animal drug residue detection. This expansion has been studied for years by NCIMS Committees and FDA. FDA's released its four-year "Multicriteria-based Ranking Model for Risk Management of Animal Drug Residues in Milk and Milk Products" study on the first day of the Conference. This FDA study provided a risk ranking of animal drugs used by dairy farmers and prioritized them (risk ranking). The ranking is intended to be used to determine which animal drug residues should be added to the mandatory testing program for beta lactam (penicillin-type) drug residues (began in the mid-1990s). The states and industry supported a pilot program to establish and fine tune an expansion of the existing mandatory testing for animal drugs in raw milk coming from the farm while FDA wanted a specific list of animal drugs added to the existing program and implemented within two (2) years. The current animal drug residue testing program has kept the nation's milk supply safe from the accidental addition of animal drugs since 1995. 

 
Fortunately, after much discussion and negotiation, the outcome in both subject areas was a reasonable compromise.  Read Complete Article

Optimizing Dryer Performance with Sticky Line Indication Systems (SLI Systems) - April 2015

 By Bjorn Sorensen

 

Has your dryer ever plugged? Then a SLI System will help avoiding this happening again. 


 

Milk powders with high lactose content such as Non-fat Dry Milk (NDM), Skim Milk Powder (SMP) and lower protein Whey Protein Concentrates (WPC 34) are inherently "sticky" under certain conditions - and sticky powders may lead to plugged up dryers, cyclones and bag houses. 


 Most crystalline solids such as lactose can exist in two distinct states - glassy and rubbery. The glassy state is rigid, brittle and non-sticky. The rubbery state is pliable and sticky. Changing the temperature and humidity surrounding lactose containing powder particles will change the state of the lactose from one to the other - a phenomena called the "glass transition". 

 

Drying condition with lower humidity favours the non-sticky, glassy (safe) state whereas higher humidity favours the sticky, rubbery (unsafe) state. Unfortunately, operating the dryer under low humidity conditions also leads to reduced capacity. 


Installation of a SLI System allows for optimizing the dryer's operating conditions - balancing the stickiness vs. capacity while avoiding plugging - by continuously monitoring the factors impacting the humidity within the dryer: 

 

* Ambient air temperature and humidity 

* Combustion moisture 

* Inlet air flow and temperature 

* Feed composition, solids and temperature 

* Secondary drying air flow and temperature 

 

This real time information is processed via algorithms within the dryer's PLC, to arrive at a calculated Operating Point, which is then compared to the current product's Sticky Line (the border between safe and un-safe conditions) and displayed graphically on the HMI screen. Trained operators use the display to guide the Operating Point close (for maximum capacity) to the Sticky Line while staying on the safe side of it. 


Instances where a SLI System is especially valuable by providing real time information: 

 

* Switching between products with varying lactose content (such as NDM vs SMP) 

* Production of high lactose / sugar powders (such as infant formula base) 

* Seasonal weather changes - winter with cold, dry air vs summer with hot, humid air 

* Daily weather changes - colder, drier mornings vs. warmer, humid afternoons  


 

The Importance of Dairy Ingredient Functionality - March 2015

By KJ Burrington

Given the ever expanding list of available dairy ingredients, it has never been more important for manufacturers to understand the functionality of their own ingredients and how to communicate that to food companies developing new products. Functionality testing can provide the key to the characteristics of each ingredient and give the product developer a guide to what each dairy ingredient is “good at”.   We never say that one ingredient is “more functional” than another but that each ingredient, whether it is a whey protein isolate or a milk permeate, has its own unique functionality.  


Functionality is usually determined by methods that measure properties such as water binding, emulsification, foaming, gelling or heat stability, to name a few. Unlike our standard methods for measuring the composition of dairy ingredients, functionality methods are not standard. Most of us that do functionality testing have used methods found in dairy ingredient research publications or even modified methods from non-dairy ingredient research.

 

Composition of a dairy ingredient is the primary driver of functionality differences.  Proteins, fats, and carbohydrates each have unique functions in foods that will translate into different functional properties in a dairy ingredient. The main purpose of a functionality method is to provide a method that can show functional differences between ingredients that vary in composition when a dry dairy ingredient is solubilized in water. Functionality testing can be a useful selling tool for an ingredient and provide a good comparison for a new ingredient, especially if it has some modification from a standard ingredient, ie enhanced wettability, stronger gelling, or greater heat stability. 


During the 17 years that I have been at CDR, I have seen a growing interest in food companies wanting to characterize the dairy ingredients they are currently buying and/or ingredients they may be interested in buying.  Testing the full spectrum of functional properties gives them a functionality portfolio to help them select the dairy ingredient that fits their particular application. It is also information that could be shared with all the product developers in the company.  It may also save a product developer from the age old problem of ordering a dairy ingredient sample for a particular application and having it perform poorly because they didn’t understand how it would function in their application. Even dairy ingredients with similar composition will have functional differences because of differences in their source or how they are processed. This has always been true for whey ingredients. Measuring functional properties is an important screening tool for manufacturers of dairy ingredients and the users of dairy ingredients.  If you are a manufacturer of dairy ingredients, it could be an important selling tool for you to help differentiate your products and provide more value to your customer.

 

What is the ADPI Center of Excellence - February 2015

By Lee Blakely 

As Chairman of the Center of Excellence (COE) Task Force, for this update and commentary, I would like to take the liberty of promoting the COE and the resource professionals that provide services to ADPI member companies.   In 2012 the ADPI Board of Directors, as the result of a Strategic Initiatives effort, approved the formation of a Center of Excellence that would provide ADPI Members access to professional dairy industry experts.  COE Task Force Members Richard Bradfield (International Ingredients), Ray Dyke (Agrimark), Rick Kaepernick (Hilmar), Barney Krueger (Glanbia), Jeremy Riggs (Franklin Farms East) Dan Meyer and Dave Thomas (ADPI) selected competencies that resource professionals should possess to provide ADPI Members access to expertise and additionally recommended potential industry and academic participants.


Some of the areas that are supported are processing, product applications, quality, food safety, regulatory, nutrition, risk management and business strategy.  A listing of the areas currently supported and the resource professional’s services that are available to members can be found by “clicking” on the COE icon at the top of the ADPI website home page.


Members may contact the dairy resource expert directly via e-mail or a call.  There is no cost to the ADPI Member for initial consultations.  ADPI respects the privacy of communications between its members and the resource consultant.  For the purpose of monitoring the viability of the COE Program, the consultant provides the COE Task Force Chairman with the names of member companies for which they provided resources and time involved in the consultation.


Since the inception of the COE program in June 2013 many members have taken advantage of this ADPI membership benefit.  The current resource professionals available to Members are KJ Burrington (dairy ingredients), Bjorn Sorensen ( dairy Processing), Jim Sullivan (feed ingredients), Phil Tong ( dairy technology) Allen Sayler (food safety), Craig Schroeder (regulatory), Joe O’Donnell (nutrition), Mike McCulley (risk management) Mary Keough Ledman (dairy market research) and Dan Meyer (dairy product standards).  Each of these resource professionals have multiple competencies which you will find described on the ADPI website along with their employment history, formal training and contact information.   Inquiries are welcomed and these individuals are available to assist ADPI Members.

 

Staying Engaged in Dairy Ingredients Innovation - January 2015

In the competitive world of consumer food products, dairy and food companies are continually looking for the next innovation that will help drive their growth and profitability. For dairy ingredients suppliers, improving overall product efficiencies and yields allows them to be more cost competitive in offering dairy ingredients. Alternatively, suppliers that can offer new or improved dairy ingredients have the potential to offer attractive value-added options for product developers which could command higher prices with greater profitability.   

 
Either approach likely requires significant product and technology innovation investments. Additionally consumer insights may be useful to help guide the innovation process to bring focus to the effort. This can sound like a highly risky proposition when there are no guarantees for greater sales at the price point you target, but the alternative of becoming obsolete with time may not be in your interest either. For example, if Apple Computer had not continued to innovate over the last thirty years there flagship product would still be a boxy Macintosh with a 9" monochrome display and a 3.5" floppy disc drive, processor speeds less than what is available in your Iphone6, and sold for ~$2,495! 

 
For dairy processors the risk of innovation can be reduced by taking advantage of the existing people, infrastructure and technical information being generated and made available at our universities and professional organizations dedicated to dairy foods. These groups want to help you if you let it be known what you are looking to accomplish. By being engaged you will gain new information, technology and perspectives which just can lead you to profit and growth within your own organization.   Read Article

 

 

ADPI Dairy Ingredient Standard Development Process - December 2014

ADPI believes that good, relevant industry standards help to build customer and consumer confidence and trust in U.S. produced dairy ingredients. Standards can help prevent poor quality products or "knock-offs" from gaining a foothold in the marketplace.   According to the FDA, "Food standards maintain the general quality of a large part of the national food supply and prevent economic fraud, thus protecting both consumers and producers. Without standards, different foods could have the same names or the same foods could have different names. Both situations would be confusing and misleading to consumers and create unfair competition." 


ADPI has been developing industry standards for dairy ingredient products since 1929. For many years the institute has published Bulletin 916 containing standards for grades of dry milks and Bulletin W-16 containing whey and whey products standards, and these publications are well known around the world.  

 

The board of directors recently reaffirmed that ADPI should continue to take a leadership role in the development of dairy ingredient standards. This has led to the development of a more structured, transparent and timely procedure for developing new standards and/or product descriptions for these products.  View the procedure guidelines here.

 

FSMA Supplemental Regulations - FSMA Gamechangers for Dairy Plants - November 2014

Since July of 2011, when the first requirements of FDA's Food Safety Modernization Act became enforceable, the US dairy industry has been waiting for the next shoe to drop. On September 29, 2014, FDA published significant changes ("Supplementals") to 4 of the 7 main proposed FSMA regulations. These changes will have a direct impact on how dairy plants manage their food safety programs and adds three additional FSMA requirements (supplier management, environmental testing, and product testing) that were not addressed in the original proposed regulations on Preventive Controls for Human Food and Animal Feed. Most dairy plants will also have to comply with the GMPs for animal feed if they discard or sell any dairy products or byproduct for use as animal feed.  
 
It is important that all dairy plants re-register with FDA and update their information by December 31, 2014, even if nothing has changed since first registering two (2) years ago. Failure to register by December 31st could result in FDA taking action against all finished product and closing the plant.   More...

 

 

 

Codex & IDF Impacts on the US Dairy Export Equation - September 2014

The US dairy industry has been exporting a massive amount of dairy products which has put money into the pockets of US dairy farmers, transport companies (trucking, rail and shipping), dairy processors, export brokers and government coffers. In 2013, 201.2 billion pounds of milk were produced on US dairy farms with 31.2 billion pounds of milk equivalent exported (15.5%). Looking at it another way, approximately 70% of all the increased farm milk production growth since 2003 was exported in the form of milk and whey powders, cheese and other dairy products. . 
 
Export markets are dependent upon the US dairy industry producing high quality dairy products in demand by our trading partners that meet their individual country standards. The challenge is that importing country dairy product standards can vary significantly from US standards and other importing countries for the same product. The choice of a US dairy processor is to make the same product but change the formulation, processing, ingredients, labeling and food additives to meet US and all other importing country standards, forego some export opportunities in countries with smaller import volumes or not export a given product. 
 
 
A better solution would be to have international standards for dairy products that are the same or similar to US dairy standards and adopted by all countries. The goal of the Codex Alimentarius organization, which was formed over fifty (50) years ago and operates under the United Nations is to develop international food standards that reflect standards used in most countries. The US is one of over 180 countries participate in the Codex efforts, with the intent that these countries adopt Codex food standards into their national laws and regulations. Codex provides forums for government representatives to work on, discuss, debate, finalize and adopt food standards. Essentially, the development of Codex dairy standards should reduce difference in country dairy standards and remove import restrictions, making it easier for US dairy companies to export a wide range of dairy products.   More...
 

 

 

Potential Use of Dried Dairy Permeate in Poultry Feed to Reduce the Incidence of Salmonella - Aug 2014

The American Dairy Products Institute (ADPI) is investigating the feasibility of feeding dairy permeate to poultry to reduce the incidence of Salmonella. Dr. Jim Sullivan, a member of the ADPI Center of Excellence, has completed an extensive review of the scientific literature regarding the use of dairy products in the birds' feed to reduce Salmonella. 

 
Based on a review of the limited research that has been done in this area, Dr. Sullivan reports that feeding a lactose source to poultry appears to reduce the incidence of Salmonella some of the time but not in every trial.  
 
The CDC (Centers for Disease Control) reports that 48 million Americans get sick from foodborne illnesses each year. Of course not all are from Salmonella and poultry is only one source of potentially dangerous contaminated food. However, there is no question that food safety is a major issue in this country.   

 
According to the CDC the top five pathogens contributing to foodborne illness in the US are:  

 

Salmonella 35%
Norovirus 26%
Campylobacter spp. 15%
Toxoplasma gondii 8%
E. coli STEC 4%
Subtotal 88%


 Since it has been proven scientifically that the feeding of lactose containing ingredients to chickens may reduce Salmonella, it would appear that more work should be done to understand and perfect this feeding practice in order to help protect the health of the US public.  

 
ADPI is investigating the possibility of joining forces with one of the poultry associations to support university research to determine if the feeding of dried dairy permeate to chickens will reduce the incidence of Salmonella in chicken meat and eggs.  View Complete Report 

 

 

NP's and NPE's...Another Concern for the Industry? - July 2014

by Craig Schroeder, Ph.D.

Nonylphenol and nonylphenol ethoxylates (often referred to as NP's and NPE's) have recently been brought to the attention of dairy industry manufacturers by members of the infant formula industry in Europe. These compounds are common surfactants used for reducing the surface tension of water that allows for easier spreading, wetting, and mixing of liquids. Heavy use in cleaning and sanitation chemicals in the food and textiles industries can result in these surfactants accumulating in ground water and watersheds.  

 

NP's and NPE's are not directly a concern, however, they degrade into relatively toxic compounds in aquatic environments impacting fish and other wildlife. One recent publication demonstrated NPE degradation products in human breast milk from women living near the coast of Italy where heavy consumption of fish and other seafood is common. 


NP and NPE use in Europe is highly restricted to minimize exposure to aquatic species and potential transfer to humans. In 2003, the EU passed a directive that restricts the marketing of products that contain more than 0.1% NP or NPE. In the U.S., the EPA has studied these compounds extensively and has published a recommendation to manufacturers for use of alternative chemical surfactants as part of the department's "Design for the Environment" campaign. No final ruling on NP and NPE used has been issued by EPA at this point in time, though. 


Most chemical suppliers in the U.S. are sensitive to this issue and have opted for alternatives in their formulations. With that said, even residual levels of these compounds in U.S. dairy products may create problems when selling into EU countries. ADPI is monitoring the situation and will communicate any changes in NP and NPE use in U.S. facilities by EPA.  View The Technical Brief

 

 

Production of Low Spore Milk Powder - July 2014

How Can Milk Powder Manufacturers Produce and Supply Product That Meets or Exceeds Customer's Spore Specification? 
 

Exported milk powder is often purchased by customers intending to use the powder in recombining plants to produce UHT dairy products for the local market. These customers demand "low spore" milk powders, as residual spores and the enzymes within them may cause product defects such as off flavors and gelation - all leading to product spoilage. 


Customer's specifications typically include limits for Thermophilic (113F to 158F) spores <1,000 cfu/g, but tighter specifications with maximum limits of <500 cfu/g, <100 cfu/g and even <50 cfu/g are becoming more and more common. Additionally, customers have also started to add specifications for Mesophilic (68F to 113F) spores. 


The production and supply of that meets or exceeds their customer's spore specifications starts with the raw materials - the raw milk off the farm and lactose / milk permeate used in production of Skim Milk Powder (SMP) and Whole Milk Powder (WMP). More...

 

 

Dairy Ingredients Step Up To Growing Demands From Infants and Beyond - June 2014

Nutrition and health have been driving market forces for dairy ingredients since time immemorial. Consumers constantly look for new foods that deliver solid nutrition in order to fend off disease, maximize your abilities, alleviate abnormalities or just make you look good. As the dairy industry continually explores its role in nutrition the focus now includes the interaction of milk components with other food components as well as other factors that influence health, notably the probiotic bacteria. 
 
One of the greatest challenges to survival lies in the ability to fend off microbial incursions. Furthermore, not only must we be able to repulse these attacks we must identify and select those microbes that are beneficial and then encourage their colonization in our gastrointestinal tract. Milk, evolving under this stress, delivers the specialized carbohydrates that while not digestible by the human are usable by the friendly bacteria and abhorrent to the harmful bacteria. 
 
As science learns ever more about the role of dairy components to health the consumer listens, the market grows. With pressure to market tailored products with biological activity the processing of milk ingredients grows complex. Biological activity tends to be sensitive to rough treatment e.g. pasteurization, drying etc. Proteins denature and lipids become oxidized etc. Thus, as milk is processed for applications in infant formula or other specialized applications attention in processing focuses so as to retain the desired biological activity of the dairy components.   More... 

 

FDA Fast Tracks Proposed FSMA Intentional Adulteration Regulations - Is Your Plant Ready? - Jan 2014

The US Food and Drug Administration is increasing the pace of publishing proposed regulations required by the 2011 Food Safety Modernization Act (FSMA). On December 20th, 2013, the FDA released the proposed 170 page regulation on Intentional Adulteration (IA), which once finalized sometime in mid-to-late 2014 will give larger dairy plants and those meeting certain criteria to have a formal, written enhanced IA/Food Defense program one year to comply.

 

Dairy plants exempt from the IA regulation include those generating less than $10 million in total annual sales.  Other exempt facilities include warehousing unless they contain liquid storage tanks, distributors that keep food in original packaging on the food, plants that make only food for animals and plants that make alcoholic beverages.  Farms may or may not be exempt depending on what they produce, if they process on-farm and if they produce raw milk or some other food.  More...

 

 

What Is Your Purchasing Strategy For 2014? - November 2013

By now, planning for 2014 is well underway. For a buyer, this includes determining what to buy, how much to buy, and which suppliers to buy from, along with other factors. To achieve optimal results, the buyer should take time to develop a purchasing strategy that is aligned with company goals. And this just isn't for the major dairy commodity products like milk, cheese, butter, or milk powders. It also includes packaging, warehousing, transportation, ingredients, services... anything that is bought by the company. For most food and dairy companies, the cost of raw materials and indirect materials and services represent the majority of their cost of goods sold. As a result, the effectiveness of the purchasing strategy is critical to deliver strong financial results.

 

When a structured process is applied to purchasing, the whole company can benefit. Most importantly, significant cost savings can be achieved. In addition, the purchasing function can become more integrated in the business and be seen as a vital part of the supply chain. Developing a strategic purchasing function requires companies to examine the total supply chain management process. A strategic sourcing process involves 5 main steps:  More... 

 

 

Dairy Risk Management - 20 Years Later - September 2013

While working with an ADPI Task Force planning the upcoming joint American Dairy Products Institute and Chicago Mercantile Exchange Dairy Risk Management Seminar I began to reflect on how far we have come since the early days of the modern dairy futures contracts. 
 
During the early 90's the Coffee, Sugar and Cocoa Exchange called a group of us from the industry to New York City to discuss developing dairy futures and options contracts. The big national and international confectioners and bakeries that traded sugar and cocoa on that exchange encouraged them to offer products that would allow them to protect against price volatility in their dairy ingredients. 
 
By mid 1993 Nonfat Dry Milk and Cheddar Cheese contracts were rolled out on the exchange. Milk futures and options were rolled out in 1995 and butter followed in 1996. All of these contracts foundered for lack of liquidity. There was plenty of buy side interest, but dairymen and their cooperatives did not support the new contracts. Even though producers of other agriculture commodities and their organizations had been hedging their crops for over a century, the dairy contracts just couldn't get traction. 
 
Today trading has become quite easy with the advent of electronic trading and 24 hour access to markets. ADPI and CME have put together a very strong 2 1/2 day Dairy Risk Management Seminar designed to meet the needs of both novices and those more experienced in using financial instruments to address risk. Milk producers, processors/manufacturers and end users will find the program beneficial in helping them run their businesses. For many years the dairy industry lacked the tools to protect against risk. It has taken the better part of 20 years to develop a program that can be used confidently by a broad spectrum of the industry. Join us in Chicago October 16 to 18 to hone your skills in using these tools.  More... 

 

FSMA - Crawling, Walking or Running - September 2013

FDA's Food Safety Modernization Act (FSMA) was signed by President Obama 33 months ago. With this signing, there were strong statements regarding how FSMA would revolutionize the safety of the US food supply, reducing the number and frequency of food-borne illnesses, using the new "prevention" tools identified in FSMA. 
 
Against this backdrop of a promised safer food supply to US consumers, in the last few months there have been major outbreaks related to pomegranate seeds (Hepatitis "A" with 161 ill and 70 hospitalized) and Mexican lettuce (Cyclospora with 641 ill and 41 hospitalized). Specific to dairy products there are major recalls of Greek-style yogurt (mold with no illnesses identified) and artisanal cheese (listeria with 6 ill/hospitalized and 1 death). 
 
Predicting the progress and impact of FSMA and its regulations on the US dairy industry in near to medium term future is challenging but necessary if dairy companies and individual plants are to be prepared for the inevitable day when an FDA investigator (inspector) arrives and states they will be conducting a full-scale FSMA inspection of your dairy plant.  More... 

 

Permeate Is Like The Dairy Industry's Coconut Water - August 2013

By Kimberlee (K.J.) Burrington

In all the excitement about the increasing demand for dairy ingredients and tight markets for dairy proteins worldwide, there is still one dairy ingredient that there seems to be plenty of and one that can't quite establish itself as a food ingredient. It goes by many names and is yet undefined. If you haven't guessed which ingredient I am referring to, its common names are deproteinized whey, high lactose whey, dairy product solids, permeate, or whey permeate. These ingredient names are in reference to a whey-derived permeate but of course there is also a milk permeate that has a very similar composition. Regardless of the source, it is an ingredient that contains high levels of lactose (80-85%), minerals (8-9.5%), some non-protein nitrogen (3-5%), moisture (4-5%) and organic acids (<1%). More...