More WPI in U.S. warehouses. Inventories rose by 43%

More WPI and MPC, less WPC

September brought significant changes in U.S. milk protein production. Whey protein isolate (WPI) production rose by 8.9% compared to the previous year, while milk protein concentrate (MPC) production surged by as much as 27.8%. Both raw materials are used in the food industry, including in high-protein products. Their production increased, though at different rates in each case.

The situation was different for WPC intended for human consumption. In September, its production fell by 1.2% year-over-year. However, this does not mean that all types of WPC experienced similar changes. Data for the entire category—which also includes feed applications—show varying results depending on protein content. Production of concentrates with higher protein content increased, while the group with lower protein content saw a decline.

WPI inventories are growing much faster

An even greater change was observed in the inventories of U.S. producers. At the end of September, WPI inventories were 42.7% higher than a year earlier, totaling approximately 9,100 metric tons. During the same period, WPC inventories intended for consumption increased by only 3.1%, reaching approximately 22,600 metric tons. The difference between these products is therefore much more pronounced in terms of the rate of inventory growth than in production itself.

However, an increase in inventories does not necessarily indicate weaker demand or foreshadow price declines. The data include raw materials at the producers’ disposal, including those in transit, but do not reflect total market inventories. The September results primarily highlight differences in the production and storage of specific milk proteins in the U.S. However, they do not allow for an unambiguous assessment of the situation in the global market for these raw materials.