Australian milk processors drop permeate on consumer concerns

Keeping consumer concerns in mind, milk processors in Australia, have decided to drop permeate from their branded products. Permeate is a watery, greenish waste product from the production of cheese, used by the major milk producers to reduce milk production cost.

Parmalat which sells Pauls brands and Lion, maker of Dairy Farmers and Pura brands said their milk would be permeate free.

According to chair of the Dairy Farmers Milk Co-operative, Ian Zandstra, the decision meant companies like Lion would need to buy a little more fresh milk from dairy farmers, a good thing that buffered the nervousness about a cut in contracts.

He said the move would not have any price implications, but if more milk was needed in regions of milk shortage, there would have to be a price response and an increase in prices.

He added, Lion generally needed less milk from farmers in virtually all the regions.

Dairy Farmers Co-op represents 750 milk suppliers across eastern Australia, from Queensland in the far north to Victoria. The co-op today conducted negotiations today with Lion.