Whey, Once a Marginal Byproduct, Comes Into Its
Own
Jose
Toasa
![Photo: Whey products](https://webarchive.library.unt.edu/eot2008/20080920195400im_/http://www.ers.usda.gov/amberwaves/April08/findings/Photos/findings_mt2.jpg)
Whey, a natural byproduct of cheese
production, was once discarded or used as animal
feed. Recently, however, it has been “discovered”
by traders and food processors for its high protein
content and other properties as a food additive.
As a result, the price of whey, which fluctuated
between 14 and 34 cents per pound from 1999 to mid-2006,
reached an all-time high of 78 cents in April 2007,
before falling to 43 cents in November 2007. In
addition to benefiting from increases in domestic
demand due to whey’s versatility as a food
ingredient, whey prices have benefited from increased
international demand, fueled by higher incomes and
production shocks.
Demand for whey started to increase
with news of the benefits that the high-quality
proteins found in whey provide children, adults,
and the elderly. These proteins are reported to
strengthen muscular mass, improve cardiovascular
and bone health, and help regulate weight. Moreover,
whey protein has the highest absorption (digestion)
levels when compared with those of meat, soy, and
vegetable proteins. Manufacturers often add whey
to prepared foods, such as bread, pizza, cereal,
liquids, seafood, and snack bars, because of its
high protein content.
U.S. exports of whey grew sharply
beginning in early 2006 as international buyers
discovered these same properties. Asian and North
American countries are the biggest consumers of
U.S. whey, with Canada, Mexico, China, Japan, and
South Korea accounting for around 85 percent of
U.S. whey exports. Other factors behind the increased
exports are global weather conditions, policy changes
overseas, and a cheap U.S. dollar. Traditionally,
Australia and the European Union (EU) have been
major whey exporters. However, a drought in Australia
caused dairy production to decrease, and changes
in EU dairy policies resulted in reduced whey exports.
A falling U.S. dollar attracted overseas buyers,
and exports of dry whey increased around 72 percent
from January 2006 to September 2007.
All these factors, combined with
people’s inexperience with the whey market,
pushed prices to all-time highs. However, the market
is now correcting this irregularity. USDA’s
forecast suggests that the price will be in the
33- to 36-cent range in 2008, which experts believe
may be the equilibrium (supply equals demand) price.
|