Al6—Lancaster Farming, Saturday, July 11,1981
ALEXANDRIA, Va. Imports
of casein, a dairy protein, com
pete with domestic dairy products
in some uses and may affect tiie
cost of the federal dairy price
support program, according to a
study released June Ist by the U.S.
Department of Agriculture.
However, it does not appear that
invoking import restrictions would
substantially reduce the cost of the
dairy price support program, said
Assistant Secretary of Agriculture
William Lesher. Restricting casein
imports by the maximum allowed
under law would cause some
domestic users to shift to dairy and
non-dairy alternatives, but would
not significantly increase the use
of domestically-produced skim
milk solids, he said, in a recent
Mid-Atlantic market bulletin.
Trends in casein use suggest that
the effect of imports on the dairv
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program could be much greater in
the future, he added.
Lesher said the study was begun
in May 1980 to help government
policymakers in the debate on
whether imported dairy proteins
displace domestic skim milk
solids, thus increasing the cost of
the dairy price support program.
Casein is a dairy protein used in
various food, feed and industrial
products. Since the late 1960’5,
there has been no domestic
production of casein due at least in
part to federal price supports for
nonfat dry milk and other
processed dairy products that have
made casein production non
competitive, Lesher said.
. He said those who favor
restricting casein imports have
proposed taking action under
Section 22 of the Agricultural
Adjustment Act of 1933. Section 22
BREAKING MILK RECORDS!
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USDA studies casein imports
allows imposition of a 50 percent
tariff or a quota equal to 50 percent
of casein imports during a
representative period if it is found
that imports substantially in
terfere with the operation of a
commodity price support
program.
The report, Lesher said, con
cludes that under a tariff, the use
of domestically produced skim
milk solids would not shift to other
non-dairy substitutes.
Further, because a 50 percent
tariff would not increase com
mercial disappearance skim
milk solids, it would have no im
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pact on government purchases,
Lesher said. A 50 percent quota
would cause users to substitute an
estimated 10 million pounds of
nonfat dry milk and would save the
government about $9 million, less
than 1 percent of the 1980 dairy
price support program costs, he
said.
Lesher said copies of the report
will be given to USDA policy of
ficials and members of Congress
for review. But it may be several
weeks before any decisions are
reached on the casein import
question or before USDA is ready
to make recommendations.
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Major suppliers of casein to the
United States in 1980 included New
Zealand (50 percent), Australia (12
percent) and European Com
munity countries (28 percent).
USDA estimates the United States
imported 152 million pounds of
casein in 1980, 128 million pounds
were used in manufacturing and
processing with 24 million pounds
added to inventories.
'One third of casein imported in
1980 was used in the manufacture
of imitation cheese. Other major
uses include animal feed and pet
food, coffee whitener, industrial
uses and bakery goods.
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