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WELLINGTON - The United States is the world's single largest dairying nation, producing 77 million tonnes of product in 2002.
But it has not produced its own casein since 1960, even though it imports over 111,000 tonnes a year -- about as much as New Zealand exports. And America's only domestic
milk protein concentrates are made there by a subsidiary of Fonterra, even though the USA is the world's largest market for MPC.
American farmers have complained MPC and casein imports displace their own milk, because the imports can be used as cheaper substitutes in manufactured foods.
But the US International Trade Commission has reported that soaring milk protein imports between 1998 and 2002 have not significantly hurt the prices paid for American milk. It also said America was not producing its own casein and MPC because farmers could get better money by selling their surplus milk to the Government, which stockpiles it as skim milk powder (SMP).
The USITC also said:
* MPC is a concentrated protein that contains both the main milk proteins, casein and whey, and it can be used in processed cheese and nutrition products.
* The USA imported about 50,000 tonnes in 2002, 55 per cent of it from NZ.
* NZ exported a total 45,000 tonnes of MPC in 2002, compared with 21,000 tonnes in 1998.
* NZ MPC earned up to US$4400/tonne in the United States in 2002.
* A NZ joint venture at Portales in New Mexico can produce 16,000 tonnes of MPC a year, after an expansion completed in February.
* Fonterra wants the Portales product to be allowed to be used in American yoghurts and frozen desserts -- no other MPC has such approval.
- NZPA
