Whey: 2.9 MMT
Category Intelligence on Whey Powder covers the following
Global production is growing ahead at a CAGR of 1.78 percent closely followed by demand growth at 1.73 percent
The whey production is in line with the cheese and casein production as it is produced as by product of both the production process. Also, the yield rate is high, thus the product is a low cost dairy derivative product
Evaporation and filtration play a vital role in the process, due to the presence of high water content in whey (94%). Initial composition of whey depends on cheese type. Along the process, whey products' compositions are subjected to changes, based on treatment methods.
Functionality and value of whey products improve with concentration levels. Sweet whey powder at bottom of the pyramid is more commoditized, hence, experiences highly volatility in prices, majorly driven by US, EU and NZ trade trends.
Sourcing Recommendation For buyer
Whey powder is a commoditized product with presence in both spot and financial markets (CME futures and EU futures market). Major buyers in the US and EU adopt a mixed procurement strategy by procuring partially from suppliers and the rest through commodity futures market. Buyer can adopt suitable hedging strategies to make more cost savings.
Global net supply was around 0.1 MMT (Undersupplied) in 2016, where ~90% of total supply is from EU and the US. Global production is growing ahead at a CAGR of 1.8%, closely followed by a demand growth at 1.73%. Future outlook of whey market would be balanced or remain undersupplied, largely depends on secondary derivatives' market.
Gross Domestic Product
Consumer Price Index - Inflation
Crude Oil Price
As US implements TPP:
Suppliers' preference to shift from whey powder production to secondary derivatives production is evident with the 5% decline in dry whey production during 2010–2016, which has been channelized to lactose production. Increasing number of plants for lactose and WPI production also substantiate the same.
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