Overview of Lactose: Its supply and demand in the Dairy sector

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The Demand for Milk Products

The demand for milk and milk products depends on several factors, including domestic and international economic conditions and competitive alternatives. In addition, the dairy industry has seen some positive reports about the health benefits of dairy consumption. This has resulted in higher demand for dairy products, including butter and protein-rich drinks. Domestic demand is determined by the retail market and the food service industry. All the dairy products produced in the United States are consumed within the nation, leaving little to export. Historically, this was true. However, things began to change in the early 2000s. There is still a modest percentage of United States dairy products being exported, but it continues to grow and develop.

The lactose industry was worth USD 1.19 billion in 2018 and is expected to be worth USD 1.53 billion by 2026, with a CAGR of 3.7 percent over that period.

The most common items are protein-dense, non-fat dry milk, and dry whey. Cheese and butter are also shipped in limited quantities, but only when other regions of the world are encountering shortages. China, Canada, Mexico, Southeast Asia, North Africa, and the Middle East are the primary export markets for American dairy goods. On the export side, wage growth, the quest for low-cost protein, and supply constraints from other areas have influenced the ability to meet global dairy demand.

Production of the Milk

Milk production and utilisation in the United States has been progressively growing substantially due to improved herd management and technical and genetic advancements that permit more milk to be generated from very few cows. In 2016, a herd of nine million lactating cows in the United States produced 212 billion pounds of milk.

Every country produces milk, whereas New York, California, Wisconsin, and Idaho are the top lactose-producing countries.

Milk production varies throughout the year, with the milk flushing in the spring supplying the maximum dairy. As the year proceeds, production begins to decline after early summer. Raw milk is pasteurised 365 days, which places the dairy markets outside of the needs for other agricultural products.

Factors affecting the production of milk

  • The climate has always influenced the production of milk. The rising temperatures of summertime induce thermal stress in cattle, which has a negative impact on food production. Through improved cooling and airflow techniques, dairies have restored some of the decreased productivity due to the advancements in cow welfare management. Using these techniques, the cows are less stressed, and milk production remains constant throughout the summer.
  • The wellness of a cow seems to have the most significant influence on the quality of the milk it produces. Cows, like people, also catch infections such as the common cold or flu. If the conditions are bad, they might have irritation or inflammation in their mammary glands. Mud and manure can expose the cattle to numerous pathogens, leading to an increase in infection. Increased somatic cell counts are often related to the rainy seasons.
  • Another factor that affects the quality of milk is how it is treated once it leaves the cow. Bacteria counts obtained during production can indicate whether milk was taken without sterile glassware. The lower the bacterial count, the cleaner the machinery, the faster the milk is cooled.

There are only a couple of the main factors that influence lactose supply and demand. Supply and demand are influenced by various minor additional factors such as electricity, interest rates, and currency movements. At every stage of the milk supply chain, from production to processing and transportation, market participants encounter turbulence and the possibility of unfavourable price fluctuations caused by supply and demand irregularities.

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