What Weight Whey In Milk Value?
GEORGE F.W. HAENLEIN
Extension Dairy Specialist
University of Delaware
NEWARK, Delaware It’s
been our experience as milk pro
ducers that, if we sell milk from
our Univcristy of Delaware herd
milk through our marketing
cooperative, for example at 59 per
cent fluid milk utilization, we will
get a much higher price, than if we
are subjected to a 43-pcrccnt utili
zation, as is the case now.
This is so, even though it is the
same milk and has cost the same to
produce.
Some years ago, some Dela
ware dairy herd’s milk was sold to
a processor in southern New Jer
sey at 85 percent fluid milk utili
zation. That was great, because
fluid milk utilization fetches Class
I prices the highest and non
fluid milk utilization goes for
much lower Class II prices. This
makes a considerable difference in
dairy farm income for the same
quality milk. For example, a
100-cow dairy selling 210,000
pounds of milk per month with
$13.90 for Class I and $ll.lO for
Class II prices per 100 pounds of
milk, when sold to that New Jer
sey dairy at 85 percent fluid milk
utilization, the monthly income
would be:
85% of 210.000 lbs. milk x
13.90/cwt = $24,811.50
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+ 15% of 210,000 x 11.10 =
$3,496.50
totaling = $28,308,000
Later, when we all became
members of the market-wide pool
and a marketing cooperative, the
fluid milk utilization was only 43
percent. The farm income
changed drastically downward,
even at the same amount and qual
ity of milk per month:
43% of 210,000 lb. milk x
$13.90/cwt * $12,551.70
+57% of 210,000 x 11.10 =
$13,286.70
totalling = $25,838.40
The loss per month was
$2,469.60! Why? One reason is
that market-wide, the dairy indus
try in this region seems to be un
able to achieve a good level of
fluid milk consumption, despite
the great milk-mustache and other
dairy promotions. Ads fra: soda
and other soft-drinks continue to
be more effective.
Another reason is that the Class
II price is unfair to milk produc
ers. Anyone in the cheese making
and selling business has to con
cede that the profit potential for
cheese is much greater than for
fluid milk.
In the grocery store, special
cheeses, for example, such as
Brie, Gorgonozola, Peccorino or
Emmental are all quite popular
and not necessarily imported.
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Look at the price/pound labels
some are as high as $l2/pound.
Then figure out what that price
means per 100 pounds of milk, be
cause 10 pounds of milk make an
average of 1 pound of cheese. At
$l2-per-pound, the cheese price
offers a nice return of $l2O per
100 pounds of milk, this is far
from the $13.90/100 pounds milk
producers receive for fluid milk,
and even farther removed from the
$ll.lO producers receive for sell
ing their milk for cheese making at
Class II price.
Why? In part it’s because many
cheese makers throw out the whey
9 pounds ate left out of 10
pounds of milk that is used to
make 1 pound of cheese. Many do
not know what to do with whey, or
it is too expensive to do anything
other than to give it back to the
farmer as feed for pigs or cows.
In other countries, this whey
“problem” has been solved often
elegantly and profitably, especial
ly in countries that are poor and
have limited resources, such as in
parts of mountainous Norway,
Greece and Italy. Norwegian
farmers and dairy processors rou
tinely use whey to produce their
national favorite —Gjetost brown
cheese a cheese almost un
known in the United States our
side Norwegian communities. In
Greece, farmers make the deli-
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cious Mizithra and Manouri
cheeses from whey. These cheeses
are totally unknown to non-Greek
Americans, yet they are much
tastier than U.S.-made cream
cheese. Of course, Italians love
and routinely make Ricotta from
whey, even here in the United
States, although it’s not labeled or
understood as a whey cheese, and
is different from real cheeses
made from precipitating milk
casein.
, The commercial uses of the
valuable nutrients in whey are
many, including lactose sugar in
pharmaceutical and bakery prod
ucts and whole dry whey to enrich
bread with protein and minerals.
Some soft-drink companies have
used whey in carbonated bever
ages.
So, is whey an asset or a lia-
U. Of D. Promotes Four
NEWARK, Del. The Col
lege of Agriculture and Natural
Resources at the University of
Delaware (UD) announced the
promotions of four individuals in
recognition of their contributions
to the college.
Susan S. Barton, cooperative
extension specialist for horticul
ture, was promoted to extension
specialist IV.
Teciemariam Weldekidan, de
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Lancaster Fanning, Saturday, July 4, 1998-A3l
bility? It is high time that we re
think the Class I and Class II de
signations and prices for produc
ers of milk from cows, goats,
sheep and even water buffaloes.
Give them the deserved credit for
the much more profitable use of
milk in cheese making and the
whey-product market than for
fluid milk consumption. Whey is a
real but much neglected and un
derappreciated asset
Finally, in the current debate
about restructuring milk market
ing orders and prices, let’s rethink
the fairness of Class I and Class II
prices to our producers in relation
to what the end-product retail
prices are. We can argue strongly
for a much higher price for cheese
making Class II milk than for fluid
milk Class I, because of the much
greater profit margin in cheese
and whey-product markets.
partment of plant and soil sci
ences, was promoted to associate
scientist. Phaedra Tavlarides-
Hontz, department of animal and
food sciences, was promoted to re
search associate I.
Tracy L. Wootten, extension as
sociate for vegetable crops at the
Research and Education Center,
was promoted to extension associ
ate HI.
“These promotions are a formal recogni
tion of the professional contributions made by
each of these individuals,” said John C. Nye,
dean of the College of Agriculture and Natur
al Resources. “I am pleased that we are able to
acknowledge their hard work and dedica
tion”
A graduate of UD, Barton joined extension
and the plant and soil sciences department in
1985 after receiving a master’s degree in
horticulture from North Carolina State Uni
versity. Barton is a nationally recognized ex
pert in the area of garden center management
and merchandising. Current projects include
work with the Delaware Department of
Transportation and the Delaware Center for
Horticulture on a roadside vegetation project
Weldekidan received an undergraduate de
gree in plant science from Addis Ababa Uni
versity in Ethiopia and completed a master’s
in plant pathology at UD in 1989. He is a
member of a research team that develops new
com inbred lines with increased yield poten
tial, disease and insect resistance, and drought
tolerance. Weldekidan works with under
graduates and high school students during the
summer to encourage interest in plant breed
ing as a career.
Tavlarides-Honlz joined the staff in 1995
after earning a degree in animal science at
UD. She researches the safety and efficacy of
poultry vaccines for biologic companies
throughout the country. Providing this service
establishes the university as a trusted source
of unbiased information, benefiting both
poultry farmers and biologies companies.
Wootten completed both her undergradu
ate and graduate work in plant science at UD.
She plays an active role in commercial vege
table production in Delaware, joining the Sus
sex County Extension office in 1988. She is
the editor of the “Weekly Crop Update,” a
newsletter for area growers that focuses on
topics related to vegetable and agronomic
crops. Wootten is president of the UD Agri
cultural Alumni Association.
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