The popularity and use of milk protein concentrates (MPC) continues to expand. “Short term, the increase in U.S. MPC production supports skim-solid pricing and could help explain the increase in CME spot nonfat dry milk prices since mid-July,” said Betty Berning, analyst with the Daily Dairy Report. “Longer term, the opportunities for MPCs seem plentiful as consumers globally and domestically seek to find more ways to incorporate healthy proteins, including dairy, into their diets.”
The production process for MPC is to put the skim portion of milk through the ultrafiltration process, which concentrates the proteins. This process also reduces lactose, minerals, and water. The final product is then spray-dried and contains casein and whey proteins in a ratio like that of skim milk.
“Food manufacturers use MPCs to increase the protein content of nutritional drinks, infant formula, and protein bars. Because of their low lactose levels, MPCs are ideal for low-carb applications as well,” Berning said. “Furthermore, the price point for MPCs is lower than that for whey protein concentrate, so some food companies use MPCs in nutritional applications as a lower-cost alternative to increase protein while not increasing price.”
For the first eight months of this year, MPC production of 206.8 million pounds was a steep 45% higher than the comparable period in 2023, according to USDA data. In each month between February and July, MPC production hit an all-time high for those months, and each month’s figures were up 35% or more compared to the comparable month last year, Berning noted.
Because MPCs compete with nonfat dry milk (NDM) and skim milk powder (SMP) for skim solids, nonfat dry milk and skim milk powder production combined year to date through July fell 15% below the same period last year to 1.384 billion pounds.
“This means MPC volumes are soaking up some of the excess solids not sent to milk powder dryers. If one assumes an MPC protein level of 50% (even though it can range from 40% to just under 90%), nonfat dry milk with 35% protein, and skim milk powder with 32.8% protein, total solids sent to dryers through July were down 8% year over year as MPCs lapped up skim solids,” Berning said.
