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Dairy processing.

Kenneth W Bailey¹

¹Pennsylvania State University, 210-A Armsby Building, University Park, PA 16802, USA. baileyk@psu.edu

The Veterinary Clinics of North America. Food Animal Practice

|September 4, 2003

Summary

This summary is machine-generated.

The US dairy industry must adapt to consumer demand for diverse, high-quality products and new manufacturing technologies. Modernizing milk pricing programs is key to supporting farmers and boosting growth in the competitive global market.

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Area of Science:

Agricultural Economics
Food Science and Technology
Dairy Science

Background:

The US dairy processing sector faces evolving consumer preferences and manufacturing advancements.
Demand is increasing for a wider variety of quality dairy products and novel dairy fractions like milk protein concentrate (MPC).

Purpose of the Study:

To analyze the challenges and opportunities within the US dairy processing sector.
To examine the impact of dairy policy on domestic production of innovative dairy components.
To propose modernizations for US milk pricing programs to align with market demands.

Main Methods:

Analysis of current market trends and consumer demands in the dairy sector.
Evaluation of the effects of existing dairy policies (e.g., Federal Order reform, Dairy Price Support Program) on production incentives.

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Assessment of the potential for growth in domestic and international dairy markets.

Main Results:

Dairy processors are innovating with new flavors, ultrapasteurization, and packaging to meet consumer needs.
Current policies may inadvertently encourage dairy protein imports and disincentivize domestic production of high-value components.
Surplus skim milk solids are accumulating in government warehouses instead of entering commercial markets.

Conclusions:

The future of the US dairy industry lies in producing innovative products that meet global market demands.
Modernizing milk pricing programs is essential to provide accurate market signals to farmers and processors.
A market-oriented approach will foster stronger growth for US-produced dairy products.