Farmers worried about imported milk product

0 Comments | La Crosse Tribune, Jul 20, 2002 | by Baldus, Chris

When dairy farmers demonstrated outside Democratic Congressman Ron Kind's La Crosse office last week, they took corporate America to task for using imported milk protein concentrate in some products rather than domestically produced milk.

Kraft, one of the companies targeted by name for using the concentrate in some of its processed cheese, would gladly consider using a domestic source if one existed and met company standards, according to a Kraft spokeswoman.

Although the demand for the concentrate has apparently grown - 805 metric tons were imported in 1990, while 44,878 were imported in 1999, according to the U.S. General Accounting Office - a domestic competitor has not stepped forward.

Many U.S. dairy farmers worry increased importation of milk protein concentrate means corporate America is replacing them. And the prospects of those farmers challenging the foreign companies by domestically producing the dry concentrate appears unlikely.

They've turned to Congress for help, but their legislation is languishing in subcommittees.

Milk protein concentrate is a dry type of ultra-filtered milk that allows cheese and other manufacturers to produce their products more efficiently, according to the GAO. The filtration process was developed in the 1970s.

"The food industry has been safely using milk protein concentrate in dairy products for a number of years...," said Kris Charles of Kraft Foods Corporate Affairs. "The vast majority of Kraft's dairy purchases are domestic milk and cheese, with only a very small amount being milk protein concentrate."

The 44,878 metric tons of concentrate imported in 1999 equals, at most, 1.8 percent of the total U.S. production of raw milk protein in 1999, according to the GAO.

No viable domestic source of milk protein concentrate is available, Charles said.

"We believe that it is in the long-term interest of the American dairy industry to develop a domestic source," she said. "When there is a domestic source, we will gladly consider it if it meets our procurement standards."

One reason domestic production isn't feasible is because the currencyexchange rate favors the foreign producer, said Bill Brey, president of the Wisconsin Farmers Union and a Door County dairy farmer.

"The number one reason it's not available domestically is to dry it does cost a lot of money, and it can't be made domestically at the current price of milk," he said, adding if the domestic milk price dropped, many farmers would be forced out of business.

Wisconsin loses four or five dairy farmers a day as it is, he said, noting the state has about 17,000 dairy farmers.

Wisconsin representatives of the National Farmers Union, National Farmers Organization, Family Farm Defenders, and American Raw Milk Producers Pricing Association attended the July 12 protest in La Crosse.

"Dairy producers are extremely concerned about the impact of imported MPC, casein and other milk derivatives that are displacing-the domestic milk market and depressing milk prices," National Farmers Union President Dave Frederickson stated in a press release distributed at the protest.

Exporters of milk protein concentrates face minimal U.S. import restrictions, and the FDA believes the milk protein concentrates pose minimal safety risks, according to the GAO.

Legislation to limit imports of milk protein concentrate has been in a Senate subcommittee since May 2001. Sens. Herb Kohl and Russ Feingold are among cosponsors of one bill.

Legislation to prohibit labeling as domestic natural cheese any products that contain concentrates has been in a subcommittee since March 2001. Kind and Rep. Tom Barrett, D-Milwaukee, are among co-sponsors.

Speakers noted Kraft Singles packages display a glass of milk but include milk protein concentrate. The first ingredient listed on the package, however, is milk. The fifth is milk protein concentrate.

On the other hand, Hershey Foods Corp., which a speaker at the protest criticized for using the concentrate in its Milk Duds, no longer uses it. The company last year switched to nonfat dry milk, which is used in other Hershey products, said spokeswoman Christine Dugan. Milk Duds were the lone product that used the concentrate, so switching was a cost-saving move, she said.