DBV

Jerry Dryer


Seriously, whey is probably the most under-appreciated success story in the dairy business today.

It doesn't have its own lineup of gleaming, multi-colored cartons in the refrigerated case. It doesn't have cartons of multi-flavored indulgences stacked up in the freezer case.

It is; however, in both the refrigerated and freezer cases. In fact, whey is on every shelf and in every nook and cranny in the grocery store. It's just hidden away in the fine print of the ingredient label.

Whey is garnering more and more shelf space in health food stores and nutrition centers as a stand-alone product. It is also starting to show up on the shelves of traditional grocers. Whey also is the leader of the pack as U.S. dairy businesses establish a growing and profitable beachhead in overseas market.

Over the past 25 or 30 years, whey has moved from a line item in the expense ledger to a value-added line on the income statement.

In its previous life, as the liquid left over after making cheese, whey had all of the characteristics of becoming just another commodity. It wasn't even on the radar screen of the genius who created the price support program. It didn't get a market of last resort-a government warehouse-like American cheese, butter and skim milk powder.

When it became abundantly clear that cheese makers shouldn't be "dumping it in the creek because it killed the fish," government regulators put cheese makers up against the wall. As we all know, that's when the created juices start to flow.

And flow they did. Today, whey is the most respected protein on the market. Both highly nutritious and multi-functional, whey can be found in thousands of products, not just here but around the world.

Last year, US manufacturers of dry whey shipped more than 139, 000 metric tons (that's 307 million pounds in USA speak) to overseas customers. At an average price, by the way, of $0.2625-about a dime more than the domestic price.

Another 25,000 metric tons of whey protein concentrate was shipped out. Shipments were up more than 50 % vs. five years ago. Whey protein isolate exports have increased more than ten-fold during the same time frame; totaling more than 8,000 metric tons last year.

A lot of lactose, a 'by-product' of the whey refining process, was also exported last year-173,000 metric tons to be more exact; more than twice the volume of five years earlier. Lactose, like whey, has found a home in thousand of products from hog chow to pharmaceuticals.

Is this a great success story? Hopefully, it is better appreciated. The fishes are happier, cheese makers are happier, milk producers are happier and a lot of end users are happier. Yet, the story isn't even over.

Growth in US Dairy Exports (Reported in Metric Tons) (*Liters)
Product
1999
2003
% Change
Anhydrous Milkfat
1,339
6,867
5.128
Butter
2,041
3,476
1.703
Cheese
38,340
52,112
1.359
Dry Whey
120,173
139,246
1.159
Milk and Cream*
18,277,000
29,863,000
1.634
Ice Cream
39,592
29,203
0.738
Lactose
80,236
172,710
2.153
Skim Milk Powder
168,682
114,782
0.680
Whey Protein Concentrate
15,727
24,542
1.561
Whey Protein Isolate
759
8,153
10.742
Whole Milk Powder
17,012
26,085
1.533
Yogurt
2,521
2,020
0.801
Source: US Dairy Export Council