MD_DA770                                                                        
DA                                                                              
MD DA770 Lactose - Central and West                                             

MADISON, WI.  April 09, 2015 (REPORT 14)                                        

LACTOSE - CENTRAL AND WEST                                                      
                                                                                
Lactose prices are unchanged on the mostly, but lower and higher on the 
range. The market is mixed, depending on lactose end uses. Manufacturers 
selling into infant formula and some industrial uses indicate demand is 
active and inventories are limited. However, a few manufacturers who sell 
edible lactose into the feed industry report permeate is supplanting 
lactose volumes in feed formulations. Additionally, some prices being bid 
for lactose volumes are too low, in the view of producers, and they are 
choosing to hold lactose at those prices. Also, a few producers have run 
into certification road blocks trying to clear lactose into China, despite 
current interest from buyers in that country. Lactose production is 
ongoing, following the trend of active cheese production. Inventories vary 
from short of current needs to building. The March 2015 Dairy Market 
News average of the mostly price series for Central and West lactose 
was $0.2472, compared to $0.5983 one year ago. 

DAIRY PRODUCTS:  NASS's Dairy Products report shows U.S. HUMAN and 
ANIMAL LACTOSE production during February 2015 totaled 81.3 million 
pounds, a 9.2% decrease from one year ago.  Cumulative 2015 lactose 
production totals 171.4 million pounds, an 8.1% decrease from 2014.  
Month ending stocks, at 133.7 million pounds, are 26.2% higher than 
one year ago.  
                                                                                
Including spot sales and up to 3 month contracts.                               
F.O.B. EDIBLE, NON PHARMACEUTICAL   .1800 - .3600    MOSTLY:   .2000 - .2750    

U.S. Lactose Exports, H.S. Code 1702110000(FAS)
                 2015 Exports      % Change From
                 (Million Lb.)       1 Year Ago

February Total         39.0           + 9

TOTAL, JAN - FEB       72.2           - 6

 1 China               11.6           + 107
 2 Mexico               9.9           + 3
 3 New Zealand          8.7           - 45
 4 Singapore            6.6           + 177
 5 Japan                4.7           - 34

1100CT Janet.Linder@ams.usda.gov (608)557-7003
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: www.marketnews.usda.gov/portal/da