News
-
News Articles
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
-
October 2018
- Lower farmgate prices on the horizon
- Milk yields remained steady in August
- Ireland stockpiling cheddar in response to Brexit risk
- Large increase in sales of SMP intervention stock
- The rise of fat-filled milk powders
- EU lowers production forecast
- Summer weather shrinks growth in global milk pool
- Milk to feed price ratio under pressure
- Milk to cheese values in the EU
- GB dairy herd continues to shrink
- Milk production growth continues to slow
- Provisional SMP tender results
- Lower market values hints at end to milk price rises
- Why are UK cheddar imports rising?
- Connecting farmgate milk prices to market value
- NFYFC encourages young people to talk about succession with video launch
- Standards set to develop future farmers and growers
- GB daily milk production unchanged
- Help reduce silage slippage
- Digging Deeper Workshops
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- Archive
- Technical Articles
- News Archive
The rise of fat-filled milk powders
Published 19 October 18
Fat-filled milk powder (FFMP) has become more common as butterfat has increased in value. AHDB takes a look at what it is, and how the market has developed.
Fat-filled milk powder (FFMP) is milk powder that has a fat content similar to whole milk powder, but instead of butterfat contains vegetable fats, for example palm oil. The fat is added to skim milk and then the product is dried to create a cheaper alternative to whole milk powder. It is possible to make FFMP from SMP, which is reconstituted, blended with the oil and then dried.
Making FFMP has been an appealing option in recent years. It has allowed processors to capitalise on high butterfat prices, while producing an alternative milk powder rather than having to make and sell SMP into an already well-stocked market. Vegetable oils such as palm and soy are much lower priced than butterfat, and have experienced less volatility, so the substitution is extremely cost-effective.
For buyers, FFMP is cheaper than whole milk powder while performing the same functions. It can be used industrially in bakery or making products like yoghurt. It can also be sold direct to consumers, often in countries with limited access to refrigeration, for example in Asia and sub-Saharan Africa.
The EU is one of the key FFMP producing regions in the world, though it is difficult to get exact figures for production and trade as it tends to be grouped in with other products. On the trade side it is grouped under code 19019099*, where it is estimated to make up about 50-60% of EU exports. In 2017, the EU exported 744k tonnes under this code, led by Ireland and the Netherlands. Additionally, there was 931k tonnes of intra-EU trade, led by Denmark. Total EU trade of 19019099 was worth £3.38bn. The UK exported 53k tonnes in total in 2017, worth £118million. However we do not know what the exact product mix is within this trade.
*19019099 - Food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing cocoa in a proportion by weight of < 40%, calculated on a totally defatted basis, and food preparations of milk, cream, butter milk, sour milk, sour cream, whey, yogurt, kephir or similar goods in heading 0401 to 0404, not containing cocoa or containing cocoa in a proportion by weight of < 5%, calculated on a totally defatted basis, n.e.s. (excl. malt extract and preparations for infant food, put up for retail sale, mixes and doughs for preparation of bakers' wares and goods in subheading 1901.90.91)