U.S. EXPORTS Dairy Products - by Country, 2009 (pie chart) 69 Dairy Products, 2009 v (bar graph) 70 All Dry Whey, All Dry Whey -

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2 TABLE OF CONTENTS I. EXECUTIVE SUMMARY 5 II. UTILIZATION A. Dry Milk Products Utilization 1. Nonfat Dry Milk Compilation of Dry Milk Utilization Data 9 Nonfat Dry Milk Overview 10 Nonfat Dry Milk Domestic Sales in Relation to Production, 2009 v Nonfat Dry Milk Four Year Comparison of Domestic Sales by End-Use, Domestic Sales of Nonfat Dry Milk (pie chart) 12 Four Year Comparison of Domestic Sales of Nonfat Dry Milk - Dairy, Nonfat Dry Milk Domestic Sales by Method of Distribution, Nonfat Dry Milk Manufacturers' and Resellers' Domestic Distribution, 2009 v Nonfat Dry Milk Sales to Commodity Credit Corporation (CCC), Utilization of CCC Stocks of Nonfat Dry Milk, Dry Whole Milk Dry Whole Milk Overview 17 Supply and Distribution of Dry Whole Milk, Dry Whole Milk Four Year Comparison of Domestic Sales by End-Use, Dry Buttermilk Dry Buttermilk Overview 18 Supply and Distribution of Dry Buttermilk, Dry Buttermilk Four Year Comparison of Domestic Sales by End-Use, B. Condensed Milk Utilization Utilization of Condensed Milk Solids, 2009 & C. Whey Products Utilization Compilation of Whey Utilization Data 21 Utilization of Concentrated Whey in Human Foods, 2009 & Utilization of Dry Whey in Human Foods, 2009 & Utilization of Dry Whey in Human Foods (pie chart) 24 Utilization of Whey Protein Concentrate in Human Foods, 2009 & Utilization of Whey Protein Concentrate in Human Foods (pie chart) 26 Utilization of Whey Protein Concentrate in Human Foods (By Percentage), 2009 & Utilization of Whey Protein Concentrate (25% %) in Human Foods (pie chart) Utilization of Whey Protein Concentrate (50% %) in Human Foods (pie chart) 29 Utilization of Whey Protein Isolate in Human Foods, 2009 & Utilization of Whey Protein Isolate in Human Foods (pie chart) 31 Utilization of Whey & Whey Products in Animal Feeds, 2009 & Whey Products Summary of Domestic Sales by Distribution Outlet, 2009 & Sales by Whey Products (bar graph) 34

3 III. D. Lactose Utilization Utilization of Reduced Lactose & Reduced Minerals Whey in Human Foods, 2009 & Utilization of Lactose in Human Foods, 2009 & Utilization of Lactose in Human Foods (pie chart) 38 PRODUCTION A. Dry Milk Production Nonfat Dry Milk Production, Disappearance and Consumption, Total Production and Commercial Sales of Nonfat Dry Milk, Monthly Production of Dry Milks, 2009 & Four Year Comparison of Dry Milks Production, (bar graph) 43 Nonfat Dry Milk Manufactured in the U.S., (bar graph) 44 Dry Milk Production by States, 2009 & B. Whey & Lactose Production Estimated U.S. Fluid Whey Production, 2009 & 2008 (bar graph) 47 Estimated U.S. Fluid Whey and Whey Solids Production (by type) and Resulting Quantity of Whey Solids Further Processed, Monthly Production of Whey & Whey Products, Monthly Production of Whey & Whey Products, Production of Whey & Whey Products, Four Year Comparison of U.S. Whey Products Production, (bar graph) 52 Dry Whey Manufactured in the U.S., (bar graph) 53 Whey Protein Concentrate Manufactured in the U.S., (bar graph) 54 Lactose Manufactured in the U.S., (bar graph) 55 U.S. Dry Whey Production, Production of Dry Whey & Lactose, by State, 2009 & C. Cheese Production Monthly Production of Cheese, Monthly Production of Cheese, Four Year Comparison of Cheese Production, (bar graph) 61 Production of Cheese, by State, 2009 & D. Miscellaneous Production Data Production of Domestic Dry Milk and Whey Products and Imports of Casein, Number of Milk Cows, Production per Cow and Milk Production, Milk Production in the Ten Largest Dairy States, Organic Food Category Share,

4 IV. U.S. EXPORTS Dairy Products - by Country, 2009 (pie chart) 69 Dairy Products, 2009 v (bar graph) 70 All Dry Whey, All Dry Whey - by Type, 2009 (pie chart) 72 Dry Sweet Whey, Dry Sweet Whey, 2009 v (bar graph) 74 Whey Protein Concentrate, Whey Protein Concentrate, 2009 v (bar graph) 76 High Value Whey Proteins (>80%), 2009 v (bar graph) 77 Whey Proteins, 2009 v (bar graph) 78 Lactose in Solid Form Lactose, 2009 v (bar graph) 80 Skim Milk Powder, SMP/NDM, 2009 v (bar graph) 82 Whole Milk Powder, Fluid Milk & Cream, Fluid Milk & Cream, 2009 v (bar graph) 85 Butter, Butter, 2009 v (bar graph) 87 Cheese - All types, Cheese, 2009 v (bar graph) 89 Ice Cream, Ice Cream, 2009 v (bar graph) 91 Yogurt, Anhydrous Milkfat, Milk Albumin (WPI), V. CASEIN IMPORTS VI. Casein Imports, PRODUCT DEFINITIONS Milk Product Definitions 98 Whey Product Definitions 99 VII. ADPI INFORMATION & MEETINGS About the American Dairy Products Institute 102 Upcoming Conferences/Seminars 103 Jim Page Memorial Scholarship 104

5 2009 DAIRY PRODUCTS UTILIZATION & PRODUCTION TRENDS EXECUTIVE SUMMARY The following are highlights of Dry Milk production and major end-use markets for the year ending December 31, 2009: NONFAT DRY MILK Nonfat Dry Milk production in 2009 was 1,509.1 million pounds, a decrease of 10.1 million pounds, or 0.7% from Total 2009 domestic commercial sales were 1,327.0 million pounds, a decrease of 39.9 million pounds, or 2.9% from The top five domestic end-uses of NDM, by volume, and the percent of the market each shared was: o Dairy million pounds, 58.7% o Confectionery Industry million pounds, 23.1% o Infant Formulas 74.3 million pounds, 5.6% o Baking Industry 50.4 million pounds, 3.8% o Prepared Dry Mixes & Dry Blend Manufacturers 41.1 million pounds, 3.1% DRY WHOLE MILK Dry Whole Milk production in 2009 totaled 59.6 million pounds, an increase of 9.5 million pounds (19.0%) from Total domestic sales were 47.1 million pounds, an increase of 4.2 million pounds (9.8%) from The confectionery industry remained the principal market, utilizing 39.5 million pounds -- over 83% of the total dry whole milk sold domestically in DRY BUTTERMILK Dry Buttermilk production for 2009 totaled 74.5 million pounds, an increase of 2.0 million pounds (2.8%) from Total domestic sales, reflecting both dry buttermilk and dry buttermilk product, were 64.9 million pounds, a decrease of 0.6 million pounds (-0.9%) from The principal markets were: baking industry, 37.6 million pounds; dairy industry, 12.6 million pounds and prepared dry mixes & dry blend manufacturers, 5.6 million pounds.

6 WHEY & MODIFIED WHEY PRODUCTS The following are highlights of Whey and Modified Whey Products production and major end-use markets for the year ending December 31, 2009: Total USDA reported production of whey and modified whey products for 2009 was 2,365.0 million pounds, a decrease of million pounds (-5.6%) from Production of the various whey products in 2008 (in millions of pounds and percent difference from 2008) was: o Concentrated Whey Solids, 90.8 (-12.6%) o Dry Whey, 1,001.2 (-7.5%) o Reduced Lactose & Reduced Minerals Whey, 83.6 (-5.8%) o Whey Protein Concentrate, (-6.3%) o Whey Protein Isolate, 51.9 (+18.0) o Lactose, (-3.1%) Whey gproducts gsales gfor ghuman gfood gduring g2009, gcompiled gfrom gthe gadpi s gindustry gsurvey, gwere gas follows: o Concentrated Whey, 51.7 million pounds o Dry Whey, million pounds o Reduced Lactose & Reduced Minerals Whey, 36.9 million pounds o Whey Protein Concentrate rate, million pounds o Whey Protein Isolate, 51.9 million pounds o Lactose, million pounds The whey solids reported as being utilized in human foods in 2009 totaled 1,250.3 million pounds (1,456.3 million pounds in 2008), a decrease of 14.1%. Whey solids reported sold for use in animal feed totaled million pounds in 2009 (566.2 million pounds in 2008), a decrease of 6.1%. Major end-use categories, by product, were: o Concentrated Whey (solids basis) Dairy Industry 51.1 million pounds o Dry Whey Dairy Industry million pounds Dry Blends & Prepared Dry Mixes 84.8 million pounds Baking Industry 67.6 million pounds Confectionery Industry 43.8 million pounds

7 o Reduced Lactose & Reduced Minerals Whey Confectionery Industry 25.9 million pounds Dairy Industry 7.0 million pounds Dry Blends & Prepared Dry Mixes 2.2 million pounds o Whey Protein Concentrate Nutraceuticals, Pharmaceuticals, Special Dietary Use 57.6 million pounds Dairy Industry 43.5 million pounds Dry Blends & Prepared ed Dry Mixes 34.4 million pounds Infant Formulas 32.9 million pounds o Whey Protein Isolate Nutraceuticals, Pharmaceuticals, Special Dietary Use 30.2 million pounds Sports Nutrition 9.7 million pounds Infant Formulas 4.4 million pounds o Lactose Confectionery Industry million pounds Infant Formulas million pounds Prepared Dry Mixes 13.0 million pounds Chemicals 8.8 million pounds o Whey Solids Used in Animal Feeds Swine Feeds million pounds Dairy/Calf/Cattle Feeds 72.6 million pounds All Other Feeds million pounds

8 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S DRY MILK PRODUCTS UTILIZATION W W W. A D P I. O R G

9 Compilation of Dry Milk Utilization Data This 2009 compilation of dry and condensed milk utilization represents the 62 nd annual industry-wide survey of end-uses for dry milk products. To the best of our knowledge, this Survey represents the only comprehensive analysis of how dry milk products are ultimately utilized in the commercial marketplace. Members of the American Dairy Products Institute, other cooperating processors and distributors of dry milk products participated in this Survey, reflecting approximately 92% of the total domestic distribution. With such comprehensive industry coverage, projections have been made from the survey data to the total industry. This data is intended to indicate market patterns and serve as a guide in directing promotional efforts to continue the expansion of commercial markets. The American Dairy Products Institute expresses its sincere appreciation to all who assisted by assembling information and reporting the same to make this publication a useful marketing tool. Information of interest to all condensed and dry milk processors, marketers/distributors and users is included in this 2009 publication. Such information presents a more complete picture of the manufactured milk products industry by providing an insight into supply-demand patterns and their relationship to overall marketing activities. Continued market expansion by the development of new uses for the various condensed and dry milk products is necessary for growing this segment of the dairy industry and reflects an ongoing purpose of the American Dairy Products Institute. Copyright 2010 by American Dairy Products Institute Printed in U.S.A

10 NONFAT DRY MILK: Overview Total production: 1,509,111,000 pounds - a decrease of 10.1 million pounds, or 0.7% from Total domestic commercial sales: 1,327.0 million pounds - a decrease of 39.9 million pounds, or 2.9% from Of the traditional primary markets for nonfat dry milk, confectionery and dairy industry reflected increased use in Infant formulas and baking industry reflected decreased use in Manufacturers' sales increased 10.7 million pounds, accounting for 76.0% of total sales. Resellers' sales decreased 50.6 million pounds, accounting for 24% of total sales. In 2009, net domestic sales accounted for 84.2% of the total supply while government purchases, exports and shipments to territories accounted for 15.8% of the total supply. In 2008, net domestic sales accounted for 91.9% of the total supply while government purchases, exports and shipments to territories accounted for 8.1% of the total supply. DOMESTIC SALES IN RELATION TO PRODUCTION, 2009 & Million Million Pounds Percent Pounds Percent Production of Nonfat Dry Milk 1, ,519.2 Adjustment for increases or decreases in commercial stocks 65.6 (32.3) Plus USDA sales Plus imports Total Supply 1, % 1, % Total USDA and DPPSP purchases Shipments to territories Commercial exports Total government purchases, exports, shipments to territories % % NET DOMESTIC SALES 3 1, % 1, % 1 Revised in accordance with USDA figures. 2 Industry estimate. 3 "Domestic Sales" reflect the total non-government domestic distribution, but do not include NDM used in school lunches or by the Department of Defense domestically.

11 FOUR YEAR COMPARISON OF DOMESTIC SALES OF NONFAT DRY MILK BY END-USE (millions of pounds) Change Mil. Lbs. Percent Dairy Industry % % % % % Confectionery Industry % % % % % Infant Formulas % % % % % Baking Industry % % % % % Prepared Dry Mixes & Dry Blend Manufacturers % % % % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % % % % Beverage Manufacturers % % % % % Institutional Use % % % % % Soup Manufacturers % % % % % Meat Industry % % % % % Margarine Manufacturers % % % % % Chemicals % % % % % Animal Feed % % % % % All Other Uses % % % % % TOTAL DOMESTIC NON- GOVERNMENT USE 1, % 1, % 1, % 1, % % 1 Revised. 2 The figure shown in 2007 accurately reflects the industry data submitted to ADPI; however, the comparatively low volume reported appears to be an anomaly and suggests there may have been misclassification of data or other reporting errors by the reporting entities. 3 Nonfat Dry Milk processed originally for human consumption.

12 2009 Domestic Sales of Nonfat Dry Milk (Total - 1,327.0 million lbs.) Baking Industry 3.8% Infant Formulas 5.6% All Other Uses 8.8% Confectionery Industry 23.1% Dairy Industry 58.7%

13 FOUR YEAR COMPARISON OF DOMESTIC SALES OF NONFAT DRY MILK - DAIRY (millions of pounds) Change Mil. Lbs. Percent Hard Cheese % % % % % Frozen Desserts % % % % % Cultured Products % % % % % Cottage & Cream Cheese % % % % % Dry Dairy Blends % % % % % Sales of Packaged NDM % % % % % Fluid Milk Fortification & Drink Mixes % % % % % Sales for all other dairy uses % % % % % TOTAL DOMESTIC SALES % 73 10% % % % 1 Revised in accordance with USDA figures.

14 DOMESTIC SALES BY METHOD OF DISTRIBUTION In millions of pounds Change Direct by Manufacturers , Through Resellers TOTAL 1, , , , In percent of total Change Direct by Manufacturers 76.0% 72.0% 73.0% 76.0% + 3.0% Through Resellers 24.0% 28.0% 27.0% 24.0% - 3.0% TOTAL 10% 10% 10% 10% MANUFACTURERS' DOMESTIC DISTRIBUTION Mil. Lbs. Percent Mil. Lbs. Percent To Resellers: % % Direct Sales To: Dairy Industry % % Confectionery Industry % % Prepared Dry Mixes and Dry Blend Manufacturers % % Baking Industry % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Infant Formulas % % Beverage Manufacturers % % Institutional Use % % Meat Industry % % Soup Manufacturers % % Margarine Manufacturers % % Chemicals % % Animal Feed % % All Other % % TOTAL 1, % 1, % RESELLERS' DOMESTIC DISTRIBUTION Mil. Lbs. Percent Mil. Lbs. Percent Dairy Industry % % Baking Industry % % Prepared Dry Mixes and Dry Blend Manufacturers % % Confectionery Industry % % Institutional Use % % Meat Industry % % Beverage Manufacturers % % Soup Manufacturers % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Margarine Manufacturers % % Infant Formulas % % Chemicals % % Animal Feed % % All Other % % TOTAL % % Revised in accordance with USDA figures. 2 Nonfat Dry Milk processed originally for human consumption.

15 NONFAT DRY MILK SALES TO CCC, (millions of pounds) Month January 35.6 February 34.1 March April May June July August 2.4 September (3.1) October November 36.1 December 41.1 TOTAL

16 UTILIZATION OF CCC STOCKS OF NONFAT DRY MILK, (millions of pounds) Uncommitted supplies as of beginning of year CCC Purchases (contract basis) Utilizations Sales-- Livestock Feed Restricted use (feed) Unrestricted Sales Cattle Feed Program Casein Production Export Sales CCC Export Incentive Program From Commercial Sources Domestic Donations 2 Needy Schools Institutions Bureau of Prisons Domestic Donations Exch. Initiative Pudding Exchange Cheese Exchange UHT Milk Exchange Nonprofit 501(c)3 Exchange Foreign Donations Title II Furnished as an ingredient in blended foods Section Food for Progress Total Utilization Uncommitted supplies as of December 31 1 Annual figures based on Federal Government fiscal year (October 1 - September 30). Totals may not add due to rounding and inventory adjustments. 2 Based on orders issued for shipment NOTE: Although an uncommitted inventory of NDM has continued to exist for some time; it has not been reported due to CCC s efforts to utilize all NDM purchased under the price support program.

17 DRY WHOLE MILK: Overview Dry whole milk production totaled 59.6 million pounds for 2009, an increase of 9.5 million pounds or 19.0% from Total domestic sales totaled 47.1 million pounds for 2009, an increase of 4.2 million pounds or 9.8% from Confectionery remains the principal market, utilizing 39.5 million pounds SUPPLY AND DISTRIBUTION OF DRY WHOLE MILK (millions of pounds) Change Mil. Lbs. Percent Production of Dry Whole Milk % Change in Manufacturers' Stocks % Imports % Total Distributed % Total Commercial & USDA Exports % Less Shipments to Territories % NET DOMESTIC SALES % FOUR YEAR COMPARISON OF DOMESTIC SALES BY END-USE (millions of pounds) Change Mil. Lbs. Percent Confectionery Industry % Dairy Industry % Baking Industry % Dry Blends % Prepared Dry Mixes & Dry Blend Manufacturers % Packaged for Retail Use % Infant Formulas % Institutional Use % Animal Feed % NET DOMESTIC SALES % 1 Revised in accordance with USDA figures. 2 Estimate. 3 Dry whole milk processed originally for human consumption.

18 DRY BUTTERMILK: Overview Dry buttermilk production totaled 74.5 million pounds for 2009, an increase of 2.0 million pounds from Total domestic sales decreased to 64.9 million pounds, a decrease of 0.6 million pounds, or 0.9% from Principal markets were: Baking, utilizing, 37.6 million pounds; Dairy, utilizing 12.6 million pounds, and Prepared Dry Mixes and Dry Blends, utilizing 5.6 million pounds SUPPLY AND DISTRIBUTION OF DRY BUTTERMILK 1 (millions of pounds) Change Mil.Lbs. Percent Production of Dry Buttermilk % Less quantity not produced for human food % NET DISTRIBUTED FOR HUMAN FOOD % FOUR YEAR COMPARISON OF DOMESTIC SALES BY END-USE 3 (millions of pounds) Change Mil.Lbs. Percent Baking Industry % Dairy Industry % Prepared Dry Mixes & Dry Blend Manufacturers % Confectionery Industry % Institutional Use % Animal Feed % All Other Uses ,560% NET DISTRIBUTED FOR HUMAN FOOD % 1 Reflects Dry Buttermilk unless otherwise indicated. 2 Revised in accordance with USDA figures. 3 Includes Dry Buttermilk and Dry Buttermilk Product, reported without differentiation. 4 Dry Buttermilk processed originally for human consumption.

19 UTILIZATION OF CONDENSED MILK SOLIDS & (millions of pounds) NONFAT MILK WHOLE MILK BUTTERMILK 2009 Volume 2 Percent Volume 2 Percent Volume 2 Percent Dairy Industry Frozen Desserts, Ice Cream Mixes % % % Hard Cheese % % % Cultured Products % % % Fluid Milk Fortification % % % Other % % % Total % % % Wet Blends Bakery Industry % % % Infant Formulas % % % Dairy Industry % % % Mixes % % % Chemicals % % % Confectionery Industry % % % Total % % % Confectionery Industry % % % TOTAL % % % GRAND TOTAL: Volume 2 Percent Volume 2 Percent Volume 2 Percent Dairy Industry Frozen Desserts, Ice Cream Mixes % % % Hard Cheese % % % Cultured Products % % % Fluid Milk Fortification % % % Other % % % Total % % % Wet Blends Bakery Industry % % % Infant Formulas % % % Dairy Industry % % % Mixes % % % Chemicals % % % Confectionery Industry % % % Total % % % Confectionery Industry % % % TOTAL % % % GRAND TOTAL: Final marketable product only; does not include quantity used or shipped to another plant for further processing into dry products. 2 Volume figures expressed on solids basis.

20 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S WHEY PRODUCTS UTILIZATION W W W. A D P I. O R G

21 Compilation of Whey Utilization Data This 2009 compilation of whey products utilization represents the 35 th industrywide survey of end-uses for whey products. To the best of our knowledge, this Survey represents the only comprehensive analysis of how whey products are ultimately utilized in the commercial marketplace. Members of the American Dairy Products Institute, other cooperating processors and resellers participated in this Survey reflecting approximately 97% of the USDAreported whey solids processed during With such comprehensive industry coverage, projections have been made from the Census data to the total industry. This data is intended to indicate market patterns and serve as a guide in directing promotional efforts to continue the expansion of commercial markets for whey products. The American Dairy Products Institute expresses its sincere appreciation to all who assisted by assembling information and reporting the same to make this publication a useful tool in developing marketing and promotional programs. Information of interest to whey processors, marketers/distributors and users is included in this 2009 publication. The inclusion of such information presents a more complete picture of the whey products industry by providing an insight into supplydemand patterns and their relationship to overall marketing activities. Continued market expansion by the development of new uses for the various whey products is necessary for growing this segment of the dairy industry and reflects an ongoing purpose of the American Dairy Products Institute. Copyright 2010 by American Dairy Products Institute Printed in U.S.A

22 UTILIZATION OF CONCENTRATED WHEY IN HUMAN FOODS Comparison of 2009 & 2008 End-Uses Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Sweet Acid Total Percent Sweet Acid Total Percent Dairy Industry % % Wet Blends % % Total % % GRAND TOTAL: Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Sweet Acid Total Percent Sweet Acid Total Percent Dairy Industry % % Total % % GRAND TOTAL: 10 1 Volume figures (solids basis) in millions of pounds. 2 Revised in accordance with USDA figures.

23 UTILIZATION OF DRY WHEY IN HUMAN FOODS Comparison of 2009 & 2008 End-Uses Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Sweet Acid Total Percent Sweet Acid Total Percent Dairy Industry % % Dry Blends & Prepared Dry Mixes % % Confectionery Industry % % Baking Industry % % Margarine Manufacturers % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Institutional Use % % All Others % % Total % GRAND TOTAL: % Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Sweet Acid Total Percent Sweet Acid Total Percent Dairy Industry % % Dry Blends & Prepared Dry Mixes % % Baking Industry % % Confectionery Industry % % Margarine Manufacturers % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Total 1 Volume figures in millions of pounds. 2 Revised in accordance with USDA figures % GRAND TOTAL: %

24 2009 Utilization of Dry Whey in Human Foods (Total million lbs.) All Other Uses 11.8% Baking Industry 15.1% Dairy Industry 54.1% Dry Blends 19.0%

25 UTILIZATION OF WHEY PROTEIN CONCENTRATE IN HUMAN FOODS Comparison of 2009 & 2008 End-Uses Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Sweet Acid Total Percent Sweet Acid Total Percent Dairy Industry % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Infant Formulas % % Dry Blends & Prepared Dry Mixes % % Wet Blends % % Meat Manufacturers % % Baking Industry % % Confectionery Industry % % Institutional Use % % All Others % % Total % % GRAND TOTAL: Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Sweet Acid Total Percent Sweet Acid Total Percent Dairy Industry % % Infant Formulas % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Dry Blends & Prepared Dry Mixes % % Wet Blends % % Baking Industry % % Confectionery Industry % % Meat Manufacturers % % All Others % % Total % % 1 Volume figures in millions of pounds. 2 Revised in accordance with USDA figures. GRAND TOTAL: 251.0

26 2009 Utilization of Whey Protein Concentrate in Human Foods (Total million lbs.) All Other Uses 4.1% Infant Formulas 18.7% Dairy Industry 24.8% Dry Blends and Prepared Dry Mixes 19.6% Nutraceuticals Pharmaceuticals Special Dietary 32.8%

27 UTILIZATION OF WHEY PROTEIN CONCENTRATE IN HUMAN FOODS (BY PERCENTAGE) Comparison of 2009 & 2008 End-Uses % % 5% % Market Category Total Percent Total Percent Dairy Industry % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Dry Blends & Prepared Dry Mixes % % Infant Formulas % % Baking Industry % % Wet Blends % % Confectionery Industry % % Meat Manufacturers % % All Others % % Total % % GRAND TOTAL: % % 5% % Market Category Total Percent Total Percent Dairy Industry % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Dry Blends & Prepared Dry Mixes % % Infant Formulas % % Wet Blends % % Baking Industry % % Confectionery Industry % % Meat Manufacturers % % All Others % % Total % % 1 Volume figures in millions of pounds. 2 Revised in accordance with USDA figures. GRAND TOTAL: 251.0

28 2009 Utilization of Whey Protein Concentrate (25.0% %) in Human Foods (Total million lbs.) All Other Uses 3.7% Infant Formulas 24.4% Dairy Industry 42.9% Dry Blends and Prepared Dry Mixes 28.0% Nutraceuticals Pharmaceuticals Special Dietary 1.0%

29 2009 Utilization of Whey Protein Concentrate (5% %) in Human Foods (Total million lbs.) All Other Uses 4.6% Dairy Industry 1.8% Infant Formulas 11.5% Dry Blends and Prepared Dry Mixes 8.8% Nutraceuticals Pharmaceuticals Special Dietary 73.3%

30 UTILIZATION OF WHEY PROTEIN ISOLATE IN HUMAN FOODS Comparison of 2009 & 2008 End-Uses Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Total Percent Total Percent Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Sports Nutrition % % Infant Formulas % % Prepared Dry Mixes % % Dairy Industry % % Baking Industry % % All Others % % Total % % GRAND TOTAL: Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Total Percent Total Percent Prepared Dry Mixes % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Baking Industry % % Dairy Industry % % Wet Blends % % Confectionery Industry % % All Others % % Total % % 1 Volume figures in millions of pounds. 2 Revised in accordance with USDA figures. GRAND TOTAL: 43.4

31 2009 Utilization of Whey Protein Isolate in Human Foods (Total million lbs.) All Other Uses 14.6% Infant Formulas 8.5% Sports Nutrition 18.7% Nutraceuticals Pharmaceuticals Special Dietary 58.2%

32 UTILIZATION OF WHEY & WHEY PRODUCTS IN ANIMAL FEEDS 1 Comparison of 2009 & 2008 End-Uses Market Category Sweet Acid Total Percent Sweet Acid Total Percent Dairy/Calf/Cattle Feeds Concentrated Whey % % Dried Whey % % Dried Whey Product % % Whey Protein Concentrate % % Lactose % % Whey Solids in Wet Blends % % Swine Feeds Concentrated Whey % % Dried Whey % % Dried Whey Product % % Whey Protein Concentrate % % Lactose % % Whey Permeate % % Pet Foods Dried Whey % % Dried Whey Product % % Other Feeds Concentrated Whey % % Dried Whey % % Dried Whey Product % % Whey Protein Concentrate % % Lactose % % Whey Permeate % % Whey Solids in Wet Blends % % Feed Use, Undesignated % % Total % % 1 Includes both direct and indirect sales. 2 Volume figures in millions of pounds.

33 SUMMARY OF DOMESTIC SALES BY DISTRIBUTION OUTLET, Direct Indirect Direct Indirect Human Food Volume Percent Volume Percent Volume Percent Volume Percent Concentrated Whey % % % % Dry Whey % % % % Reduced Lactose Whey & Reduced Minerals Whey % % % % Whey Protein Concentrate % % % % Lactose % % % % Whey Protein Isolate % % % % Total Human Food % % 1, % % Animal Feed Concentrated Whey % % % % Dried Whey % % % % Dried Whey Product % % % % Whey Protein Concentrate % % % % Lactose % % % % Whey Permeate % % % % Whey Solids in Wet Blends % % % % Feed Use, Undesignated 0.1 % % % % Total Animal Feed % % % % Total 1, , GRAND TOTAL 1, , Volume figures in millions of pounds. 2 Revised in accordance with USDA figures.

34 2009 SALES BY WHEY PRODUCT Human Food Animal Feed Concentrated Whey Dry Whey RLW & RMW WPC Lactose WPI Whey Permeate Expressed in millions of pounds

35 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S LACTOSE UTILIZATION W W W. A D P I. O R G

36 UTILIZATION OF REDUCED LACTOSE & REDUCED MINERALS WHEY IN HUMAN FOODS Comparison of 2009 & 2008 End-Uses Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Sweet Acid Total Percent Sweet Acid Total Percent Confectionery Industry % % Dairy Industry % % Dry Blends & Prepared Dry Mixes % % Baking Industry % % All Others % % Total % % GRAND TOTAL: Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Sweet Acid Total Percent Sweet Acid Total Percent Confectionery Industry % % Dairy Industry % % Dry Blends & Prepared Dry Mixes % % Infant Formulas % % All Others % % Total % % 1 Volume figures in millions of pounds. 2 Revised in accordance with USDA figures. GRAND TOTAL: 32.6

37 UTILIZATION OF LACTOSE IN HUMAN FOODS Comparison of 2009 & 2008 End-Uses Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Total Percent Total Percent Confectionery Industry % % Infant Formulas % % Prepared Dry Mixes % % Chemicals % % Baking Industry % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Dairy Industry % % All Others % % Total % % GRAND TOTAL: Direct Sales (Manufacturers) Indirect Sales (Resellers) Market Category Total Percent Total Percent Infant Formulas % % Confectionery Industry % % Chemicals % % Dairy Industry % % Nutraceuticals, Pharmaceuticals, Special Dietary Use % % Prepared Dry Mixes % % Baking Industry % % All Others % % Total % % 1 Volume figures in millions of pounds. 2 Revised in accordance with USDA figures. GRAND TOTAL: 502.9

38 2009 Utilization of Lactose in Human Foods (Total million lbs.) Dairy Industry 4.3% All Other Uses 13.2% Infant Formulas 37.2% Confectionery Industry 45.3%

39 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S DRY MILK PRODUCTION W W W. A D P I. O R G

40 NONFAT DRY MILK (Human Food Only) Production, Total Disappearance, Domestic Consumption, Domestic Per Capita Consumption Domestic Total Domestic Per Capita Production Disappearance Consumption Consumption Year (1,000 lbs.) (1,000,000 lbs.) (1,000,000 lbs.) (lb.) ,160,690 1,065 (1) ,314,270 1,014 (2) ,400,455 1,010 (3) ,499,902 1,378 (4) ,160,670 1,321 (5) ,390,033 1,630 (6) ,284,143 1,610 (7) ,056,797 1,571 (8) ,722 1,106 (9) , (10) , (11) , (12) ,123 1,008 (13) , (12) ,215,600 1,191 (14) ,232,994 1,280 (12) ,061,771 1,081 (14) 1, ,217,562 1,171 (15) ,135,383 1,120 (16) ,378,190 1,275 (17) ,451,751 1,073 (18) ,413,777 1,156 (19) ,595,939 1,362 (20) ,685,482 1,758 (21) ,412,381 1,883 (22) 1, ,210,313 1,872 (11) 1, ,224,072 1,595 (11) ,298,480 1,443 (23) ,519, ,810 (23) ,509, Revised. 2 Preliminary. (1) INCLUDES 81 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (13) INCLUDES 11 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (2) INCLUDES 50 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (14) INCLUDES 5 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (3) INCLUDES 58 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (15) INCLUDES 3 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (4) INCLUDES 77 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (16) INCLUDES 2 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (5) INCLUDES 92 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (17) INCLUDES 4 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (6) INCLUDES 96 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (18) INCLUDES 13 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (7) INCLUDES 95 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (19) INCLUDES 12 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (8) INCLUDES 85 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (20) INCLUDES 193 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (9) INCLUDES 38 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (21) INCLUDES 463 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (10) INCLUDES 19 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (22) INCLUDES 111 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (11) INCLUDES 7 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (23) INCLUDES 9 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED. (12) INCLUDES 6 MILLION POUNDS SOLD DOMESTICALLY FOR ANIMAL FEED.

41 TOTAL PRODUCTION AND COMMERCIAL SALES OF NONFAT DRY MILK (MILLIONS OF POUNDS) Year Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total PRODUCTION , , ,298.4 SALES , , ,211.4 Source: USDA/NASS 180 PRODUCTION JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC SALES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

42 MONTHLY PRODUCTION (thousands of pounds) Month Nonfat Dry Milk Skim Milk Powder Dry Whole Milk Dry Buttermilk Dry Skim Milk January 158,286 17,663 4,084 7, February 125,902 22,693 3,381 6, March 137,301 24,432 4,092 5, April 141,397 24,645 3,002 5,340 1,290 May 150,452 26,697 5,587 5, June 146,065 16,796 4,497 6,224 1,033 July 133,175 14,023 5,073 5, August 107,049 10,677 6,064 5, September 87,808 12,585 4,589 5, October 92,800 10,174 5,583 6, November 102,156 18,924 6,529 6, December 126,720 22,601 7,079 8, TOTAL 1,509, ,910 59,560 74,514 9,229 1 Preliminary. GRAND TOTAL: 1,874,324 MONTHLY PRODUCTION (thousands of pounds) Month Nonfat Dry Milk Skim Milk Powder Dry Whole Milk Dry Buttermilk Dry Skim Milk January 112,970 45,614 2,933 7, February 121,107 33,804 2,498 5, March 136,993 34,428 5,290 5, April 134,861 36,137 4,260 6, May 131,607 45,511 4,947 6, June 135,979 33,873 4,954 5, July 134,875 27,120 5,050 5, August 115,205 26,649 3,675 5,627 1,000 September 85,541 38,868 4,535 5, October 121,071 17,556 4,941 6, November 133,702 16,477 3,739 6, December 155,262 17,793 3,315 6, TOTAL 1,519, ,830 50,137 72,494 8,283 GRAND TOTAL: 2,023,917 1 Revised.

43 Four Year Comparison of Dry Milks Production (1,000 lbs.) 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , ,000 0 Nonfat Dry Milk Skim Milk Powder Dry Whole Milk Dry Buttermilk Dry Skim Milk, Animal Feed Total

44 Nonfat Dry Milk Manufactured In U.S. The Compounded Annual Growth Rate for Nonfat Dry Milk manufactured in the U.S. is -0.74% , , ,000 1,200,000 1,500,000 1,800,000 Thousands of Pounds

45 PRODUCTION BY STATES 2009 (thousands of pounds) State Nonfat Dry Milk Skim Milk Powder Dry Whole Milk Dry Buttermilk Dry Skim Milk California 832, ,503 1 All Others 676, ,910 59,560 40,011 9,229 TOTAL 1,509, ,910 59,560 74,514 9,229 GRAND TOTAL: 1,874,324 PRODUCTION BY STATES 2008 (thousands of pounds) State Nonfat Dry Milk Skim Milk Powder Dry Whole Milk Dry Buttermilk Dry Skim Milk California 819, ,166 2,787 All Others 699, ,830 50,137 37,328 5,496 TOTAL 1,519, ,830 50,137 72,494 8,283 GRAND TOTAL: 2,023,917 1 Production figure is not shown when less than 3 plants report to UDSA otherwise individual plant operations could be disclosed. This production is included in the totals under All Others".

46 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S WHEY & LACTOSE PRODUCTION W W W. A D P I. O R G

47 ESTIMATED U.S. FLUID WHEY PRODUCTION AND 2008 (billions of pounds) Total Production Sweet-Type Whey Acid-Type Whey Estimate based upon USDA reported cheese production. 2 Equivalent to 5.7 billion lbs. whey solids (5.4 billion sweet-type and 0.3 billion acid-type) 3 Equivalent to 5.6 billion lbs. whey solids (5.3 billion sweet-type and 0.3 billion acid-type)

48 ESTIMATED U.S. FLUID WHEY & WHEY SOLIDS PRODUCTION (BY TYPE) AND RESULTING QUANTITY OF WHEY SOLIDS FURTHER PROCESSED Sweet-type Whey Production Cheese Production 3 6,488 6,735 7,217 7,492 8,258 8,547 8,873 9,525 9,777 9,913 10,109 Calculated Fluid Whey 4 58,392 60,615 64,953 67,428 74,322 76,923 79,857 85,725 87,993 89,217 90,981 Calculated Whey Solids 5 3,503 3,637 3,897 4,046 4,459 4,615 4,791 5,144 5,280 5,353 5,459 Acid-type Whey Production Cottage Cheese Production Calculated Fluid Whey 4 4,722 4,386 4,140 4,368 4,410 4,488 4,674 4,668 4,644 4,284 4,380 Calculated Whey Solids Total Whey Production (fluid basis): 63,114 65,001 69,093 71,796 78,732 81,411 84,531 90,393 92,637 93,501 95,361 Total Whey Production (solids basis): 3,786 3,900 4,145 4,308 4,724 4,884 5,071 5,424 5,559 5,610 5,722 Whey Solids Further Processed (millions of pounds) A - Concentrated Whey Solids B - Dry Whey - Human Food 1,054 1,067 1,044 1,095 1,105 1, ,064 1,073 1, Animal Feed C - Modified Dry Whey Products - Reduced Lactose & Minerals Whey Whey Protein Concentrate D - Whey Solids in Wet Blends E - Whey Solids Utilized for Lactose ,065 1,182 1,209 1,192 1,156 Total Whey Solids Further Processed (A+B+C+D+E): 2,069 2,038 2,276 2,420 2,514 2,546 2,587 2,863 2,891 2,858 2,702 Total Whey Solids Further Processed as % of Total Whey Production (solids basis): 54.6% 52.2% 54.9% 56.2% 53.2% 52.1% 51.0% 52.8% 52.0% 50.9% 47.2% 1 Revised. 2 Preliminary. 3 USDA/NASS. 4 Whey Production: approximately 9 lb/1 lb cheese produced (except Cottage). approximately 6 lb/1lb Cottage Cheese produced. 5 Average total solids content of whey: 6.0% 1990 thru Average total solids content of concentrated whey: 50% 1990 thru Approximately 1.6 lb whey solids utilized/1 lb lactose produced.

49 MONTHLY PRODUCTION OF WHEY & WHEY PRODUCTS, (figures in thousands of pounds) Reduced Concentrated Dry Lactose & Whey Protein Whey Protein Whey Whey Minerals Whey Concentrate Isolate Lactose January 8,267 79,395 7,354 35,177 3,824 58,839 February 7,177 74,668 6,123 32,340 3,537 51,653 March 7,482 82,785 7,606 35,259 4,588 59,717 April 8,383 83,218 6,129 32,971 3,861 58,153 May 7,822 87,125 7,440 34,705 3,957 59,639 June 7,466 92,639 7,125 34,572 4,657 60,429 July 7,603 93,640 7,122 35,221 4,492 61,168 August 7,202 82,555 6,639 35,284 4,694 62,065 September 7,259 79,006 6,582 34,810 4,725 60,066 October 7,635 81,709 7,315 35,830 4,682 63,926 November 6,973 79,361 7,139 34,061 4,470 61,927 December 7,540 85,059 7,028 34,785 4,391 64,977 Total 90,809 1,001,160 83, ,015 51, ,559 1 Preliminary. GRAND TOTAL: 2,365,023

50 MONTHLY PRODUCTION OF WHEY & WHEY PRODUCTS, (figures in thousands of pounds) Reduced Concentrated Dry Lactose & Whey Protein Whey Protein Whey Whey Minerals Whey Concentrate Isolate Lactose January 9,569 88,832 7,886 36,042 3,229 62,275 February 9,274 89,200 7,251 34,413 2,881 60,504 March 9,230 89,261 8,373 38,048 3,125 64,289 April 8,769 88,652 7,533 38,199 3,176 63,817 May 8,861 99,025 7,605 38,806 3,364 65,588 June 7,945 95,045 7,865 36,294 3,541 63,383 July 9,109 91,512 7,319 38,545 3,289 65,229 August 8,529 89,253 6,706 36,573 4,242 63,488 September 8,635 85,891 6,955 34,830 4,306 58,834 October 8,596 87,708 7,417 37,619 4,490 60,005 November 7,334 86,416 6,350 35,541 4,280 57,454 December 8,043 91,115 7,490 37,799 4,046 60,429 Total 103,894 1,081,910 88, ,709 43, ,295 1 Preliminary. GRAND TOTAL: 2,506,527

51 PRODUCTION OF WHEY & WHEY PRODUCTS, (figures in thousands of pounds) Product Concentrated Whey Solids 3 Dry Whey Human Food Animal Feed Total 4 101, , ,894 90,809 1,063,551 46,065 1,072,553 61,308 1,024,252 57, ,654 50,506 Total 1,109,616 1,133,861 1,081,910 1,001,160 Reduced Lactose & Minerals Whey 5 Human Food Animal Feed 44,980 46,616 45,063 52,874 36,962 51,788 31,295 52,307 Total 91,596 97,937 88,750 83,602 Whey Protein Concentrate Human Food Animal Feed 378,615 49, ,376 36, ,352 38, ,336 39,679 Total 427, , , ,015 Whey Protein Concentrate % % 4 297, , , , , ,593 Total 427,721 Whey Protein Isolate 260, , , , ,015 Total 4 30,673 39,340 43,969 51,878 Lactose Total 4 738, , , ,559 GRAND TOTAL: 2,499,529 2,531,578 2,506,527 2,365,023 1 Revised. 2 Preliminary. 3 Final marketable product only. Does not include quantity used or shipped to another plant for further processing into Dry Whey or Modified Whey Products. 4 Human Food and Animal Feed reported as combined total. 5 Reduced Lactose & Reduced Minerals Whey combined to avoid disclosure of individual plant operations.

52 Four Year Comparison of U.S. Whey Products Production (1,000 pounds) 2,600,000 2,500,000 2,400,000 2,300,000 2,200,000 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 1,500,000 1,400,000 1,300,000 1,200,000 1,100,000 1,000, , , , , , , , , ,000 0 Concentrated Whey Solids Dry Whey Reduced Lactose/Reduced Minerals Whey Whey Protein Concentrate Whey Protein Isolate Lactose Total

53 Dry Whey Manufactured In U.S The Compounded Annual Growth Rate for Dry Whey manufactured in the U.S. is -1.14% 0 300, , ,000 1,200,000 Thousands of Pounds

54 Whey Protein Concentrate Manufactured in the U.S. The Compounded Annual Growth Rate for Whey Protein Concentrate manufactured in the U.S. is 2.14% , , , , ,000 Thousands of Pounds

55 Lactose Manufactured in the U.S The Compounded Annual Growth Rate for Lactose manufactured in the U.S. is 2.35% , , , , , , , ,000 Thousands of Pounds

56 U.S. DRY WHEY PRODUCTION, (figures in thousands of pounds) Year Production , , , , , , , , , , , , , , , , ,031, ,097, ,136, ,069, ,143, ,167, ,237, ,196, ,163, ,147, ,116, ,136, ,178, ,147, ,187, ,045, ,115, ,085, ,034, ,040, ,109, ,133, ,081, ,001,160 1 Revised. 2 Preliminary

57 PRODUCTION OF DRY WHEY & LACTOSE, BY STATE & 2008 (figures in thousands of pounds) New York 129, Dry Whey Lactose 1 Human Animal Total Human & Animal 2 129,997 2 Wisconsin 294, ,339 2 All Others 526,318 50, , ,559 TOTAL U.S. 950,654 50,506 1,001, ,559 New York 130, Dry Whey Lactose 1 Human Animal Total Human & Animal 2 130,667 2 Wisconsin 304, ,753 2 All Others 588,832 57, , ,295 TOTAL U.S. 1,024,252 57,658 1,081, ,295 1 Includes product made for both human food and animal feed. 2 Production figure is not shown when less than 3 plants report to UDSA otherwise individual plant operations could be disclosed. This production is included in the totals under All Others".

58 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S CHEESE PRODUCTION W W W. A D P I. O R G

59 MONTHLY PRODUCTION OF CHEESE, (figures in thousands of pounds) Cheddar Other American Swiss Brick & Muenster Hispanic Mozzarella Other Italian Other Cheese January 278,181 79,019 27,316 9,401 16, ,299 78,320 70,897 February 244,440 78,930 23,640 9,642 16, ,429 70,320 78,065 March 279,296 85,063 26,298 11,092 18, ,012 79,374 91,154 April 272,691 82,090 28,890 9,362 17, ,604 75,443 90,817 May 287,422 80,599 27,487 9,722 16, ,395 74,510 88,908 June 276,646 80,223 27,349 10,471 16, ,901 73,017 84,965 July 269,533 85,162 27,237 11,863 17, ,782 72,348 85,488 August 264,743 82,345 26,094 11,143 18, ,632 73, ,551 September 259,004 83,917 25,709 10,402 17, ,262 75,825 99,440 October 263,443 85,960 26,847 11,380 17, ,106 79, ,052 November 248,976 82,617 27,133 10,609 16, ,105 79,881 94,704 December 263,062 89,137 28,336 9,731 17, ,779 81,021 85,845 Total 3,207, , , , ,474 3,267, ,974 1,072,886 1 Preliminary. GRAND TOTAL: 10,109,293

60 MONTHLY PRODUCTION OF CHEESE, (figures in thousands of pounds) Cheddar Other American Swiss Brick & Muenster Hispanic Mozzarella Other Italian Other Cheese January 266,987 72,113 25,305 8,418 16, ,964 71,656 77,448 February 254,628 68,300 23,857 7,889 15, ,926 70,322 83,203 March 270,531 72,648 23,953 9,408 15, ,399 72,779 89,110 April 272,983 69,666 23,595 8,885 16, ,096 71,493 80,654 May 277,054 77,817 25,945 9,757 15, ,440 74,263 83,913 June 264,106 75,778 24,686 11,969 15, ,710 73,204 88,851 July 269,010 76,659 24,896 12,077 16, ,981 74,119 88,265 August 261,073 82,587 24,683 12,273 16, ,523 74,540 96,059 September 242,569 82,454 22,792 11,810 16, ,743 76,455 95,722 October 259,656 87,774 24,952 10,670 17, ,723 80, ,232 November 260,893 80,750 23,830 11,258 15, ,560 76,959 97,615 December 286,964 75,565 25,474 9,714 16, ,700 81,781 85,996 Total 3,186, , , , ,268 3,222, ,066 1,071,068 1 Revised. GRAND TOTAL: 9,912,828

61 Four Year Comparison of Cheese Production (1,000 lbs.) 3,450,000 3,300,000 3,150,000 3,000, ,850,000 2,700,000 2,550,000 2,400,000 2,250,000 2,100, ,950,000 1,800,000 1,650,000 1,500,000 1,350,000 1,200, ,050, , , , , , ,000 0 Cheddar Other American Swiss Brick & Muenster Hispanic Mozzarella Other Italian

62 PRODUCTION OF CHEESE, BY STATE & 2008 (figures in thousands of pounds) 2009 Cheddar Other American Swiss Mozzarella Other Italian Total Cheese California 363, , ,101, ,475 2,057,337 Idaho 562, ,655 Iowa 111,803 60, , ,913 Minnesota 515, ,490 New York 1 1, , , ,460 Ohio 8,480 3, , ,119 Pennsylvania , ,709 Wisconsin 654, , , ,952 2,629,563 All Others 991, , ,176 1,103, ,007 2,391,057 TOTAL U.S. 3,207, , ,336 3,267, ,974 10,109, Cheddar Other American Swiss Mozzarella Other Italian Total Cheese California 375, , ,105, ,430 2,113,236 Idaho 546, ,347 Iowa 101,018 35, , ,450 Minnesota 512, ,748 New York 1 1, , , ,923 Ohio 11,619 2, , ,147 Pennsylvania 1 1 8, ,058 Wisconsin 645, , , ,502 2,524,125 All Others 995, , ,959 1,090, ,541 2,336,735 TOTAL U.S. 3,186, , ,968 3,222, ,066 9,912,828 1 Production figure is not shown when less than 3 plants report to UDSA otherwise individual plant operations could be disclosed. This production is included in the totals under All Others".

63 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S MISCELLANEOUS PRODUCTION DATA W W W. A D P I. O R G

64 PRODUCTION OF DOMESTIC DRY MILK AND WHEY PRODUCTS AND IMPORTS OF CASEIN, (figures in millions of pounds) Year Dry Milk Products Whey Products Nonfat Dry Milk 1 Dry Whole Milk Dry Buttermilk Dried Skim Milk Dry Whey Concentrated Whey Modified Whey Lactose Whey in Wet Blends Total Dry Milk & Whey Casein Imports Casein percent of total , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Includes Skim Milk Powders.

65 Number of Milk Cows 1 Average Milk Per Cow 2 Milk Production 2 Year (Thousands) (Pounds) (Billion Pounds) ,581 15, ,494 16, ,466 16, ,372 16, ,252 16, ,151 17, ,153 17, ,199 18, ,103 18, ,139 18, ,083 18, ,012 18, ,043 19, ,137 19, ,189 20, ,315 20, ,201 20, Includes dry cows, excludes heifers not yet fresh. 2 Excludes milk sucked by calves. 3 Preliminary. Number of Milk Cows, Production per Cow, and Milk Production, Source: USDA, National Agricultural Statistics Service Total U.S. Milk Prodcution, Billion Pounds

66 Total Milk Production in the Ten Largest Dairy States 1, (Million Lbs.) State California 39,512 41,203 40,683 38,830 37,564 36,465 35,437 35,065 Wisconsin 25,239 24,472 24,080 23,398 22,866 22,085 22,266 22,074 New York 12,424 12,432 12,103 12,045 12,078 11,650 11,952 12,218 Idaho 12,150 12,315 11,549 10,905 10,161 9,093 8,774 8,155 Pennsylvania 10,551 10,575 10,682 10,742 10,503 10,062 10,338 10,775 Minnesota 9,019 8,782 8,656 8,370 8,195 8,102 8,258 8,458 Texas 8,840 8,416 7,384 7,145 6,442 6,009 5,630 5,300 Michigan 7,968 7,763 7,625 7,115 6,750 6,330 6,375 6,120 New Mexico 7,904 7,865 7,290 7,630 6,951 6,737 6,666 6,316 Washington 5,561 5,696 5,531 5,464 5,608 5,416 5,581 5,620 Percentage of Top Ten Dairy States Top , , , , , , , ,101 % Total 3 74% 73% 73% 72% 72% 71% 71% 71% Total U.S. 189, , , , , , , ,063 1 Ranked by 2009 Milk Production. 2 Preliminary. 3 Milk Production and percent of total milk are for the top 10 states in the year indicated. Source: USDA, National Agricultural Statistics Service

67 Organic Food Category Share, Sales 2008 Sales 2009 Sales % Growth Category ($ Mil) ($ Mil) ($ Mil) 2008 Dairy 3,201 3,609 3, % Fruits & Vegetables 7,999 8,503 9, % Breads & Grains 2,001 2,708 2, % Meat, Poultry & Fish % Beverages 2,451 3,158 3, % Snack Foods 1,000 1,110 1, % Packaged/Prepared Foods 2,959 3,580 3, % Sauces/Condiments % Total 20,411 23,607 24, % ORGANIC SALES $10,000 $9,000 $8,000 $7,000 ($ Million) $6,000 $5,000 $4,000 $3, $2,000 $1,000 $0 Dairy Fruits & Vegetables Breads & Grains Meat, Poultry & Fish Beverages Snack Foods Packaged/Prepared Foods Sauces/Condiments Source: The Organic Trade Association

68 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S U.S. EXPORTS W W W. A D P I. O R G

69 U.S. Exports of Dairy Products by Country (Value) $2,324 million Source: USDEC

70 U.S. Exports of Dairy Products 2009 vs Volume (000 MT) *(000 liters) Source: USDEC $2,324 mil.

71 U.S. EXPORTS OF ALL DRY WHEY 1 (Metric Tons) % of 2008 North America 57,444 65,896 91, ,354 99, , % Caribbean 2,522 3,256 3,399 4,701 4,511 3,803 84% Central America 4,773 6,053 6,460 7,930 6,836 8, % South America 7,336 13,745 14,604 17,263 16,587 10,817 65% Europe 3,157 3,440 15,460 19,304 11,453 6,139 54% Middle East/N.A. 1,437 2,642 6,442 8,383 16,562 9,951 60% Far East 131, , , , , , % South Asia ,132 5,267 1,754 1, % Oceania ,742 3,086 5,556 2,658 48% Sub-Saharan Africa ,961 1, % World 209, , , , , , % 1 Category includes: Dry Whey, Whey Protein Concentrate, Modified Whey NESOI, Nat. Mk. Pro. NESOI, and Milk Albumin 250, , , ,000 50,000 0 North America Caribbean Central America South America Europe Middle East/N.A. Far East South Asia Oceania Sub-Saharan Africa (Metric Tons) Source: U.S. Dairy Export Council

72 U.S. Exports of All Dry Whey by Type ,242 MT Source: USDEC

73 U.S. EXPORTS OF DRY SWEET WHEY 1 (Metric Tons) % of 2008 North America 37,828 31,539 33,504 73,383 32,947 40, % Caribbean 1,427 2,501 3,159 3,755 3,562 2,951 83% Central America 3,852 4,431 4,953 6,169 5,093 7, % South America 3,589 5,567 7,894 6,488 7,784 5,159 66% Europe ,473 8,496 7,227 1,845 26% Middle East/N.A. 1,347 1,364 3,393 2,735 4,113 1,823 44% Far East 111, , , , , , % South Asia ,067 4, , % Oceania ,241 2,066 2, % Sub-Saharan Africa ,257 1, % World 161, , , , , , % 1 Includes Dry Whey (sweet whey and whey permeate). 180, , , , ,000 80,000 60,000 40,000 20,000 0 North America Caribbean Central America South America Europe Middle East/N.A. (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

74 U.S. Exports of Dry Sweet Whey 2009 vs Volume (000 MT) Source: USDEC

75 U.S. EXPORTS OF WHEY PROTEIN CONCENTRATE 1 (Metric Tons) % of 2008 North America 12,807 19,781 43,213 68,528 46,338 48, % Caribbean 1, % Central America 726 1,498 1,430 1,614 1,624 1,467 90% South America 3,157 8,109 6,309 9,773 7,565 4,047 53% Europe 1,227 1,947 7,105 9,193 1,639 2, % Middle East/N.A. 80 1,269 2,770 4,271 3, % Far East 17,218 34,188 35,142 43,548 56,566 69, % South Asia % Oceania ,779 1,458 52% Sub-Saharan Africa % World 36,445 67,524 97, , , , % 1 Includes whey protein concentrate ( ) and modified whey NEC ( ). 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 North America Caribbean Central America South America Europe Middle East/N.A. (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

76 U.S. Exports of Whey Protein Concentrate* 2009 vs (000 MT) *includes modified whey, NEC Source: USDEC

77 U.S. Exports of High Value Whey Protein (>80%) 2009 vs (000 MT) Source: USDEC

78 U.S. Exports of Whey Proteins 2009 vs (000 MT) Source: USDEC

79 U.S. EXPORTS OF LACTOSE IN SOLID FORM (Metric Tons) % of 2008 North America 23,944 24,711 37,883 24,504 21,528 25, % Caribbean % Central America % South America 9,645 13,790 18,550 8,070 12,065 8,799 73% Europe 2,482 5,621 10,300 10,976 15,142 6,318 42% Middle East/N.A ,847 2,888 2,192 2,832 2,751 97% Far East 108, , , , , , % South Asia 3,570 1,323 4,748 3,335 2,050 7, % Oceania 5,033 4,731 11,394 10,001 10,770 19, % Sub-Saharan Africa 980 1,261 2,637 4,797 7,818 4,469 57% World 155, , , , , , % 160, , , ,000 80,000 60,000 40,000 20,000 0 North America Caribbean Central America South America Europe Middle East/N.A. Far East South Asia Oceania Sub-Saharan Africa (Metric Tons) Source: U.S. Dairy Export Council

80 U.S. Exports of Lactose 2009 vs Volume (000 MT) Source: USDEC

81 U.S. EXPORTS OF SKIM MILK POWDER (Metric Tons) % of 2008 North America 92, ,750 69,782 79, , ,035 91% Caribbean 26,092 18,324 7,387 2,777 9,273 5,726 62% Central America 17,715 9,966 7,257 2,522 5,856 2,368 40% South America 3,507 1,688 4,843 2,435 11,890 2,810 24% Europe 14,140 6,030 7,593 9,969 10, % Middle East/N.A. 21,682 34,476 49,934 41,782 54,658 34,347 63% Far East 90, , , , ,881 97,708 56% South Asia 2,178 3,657 1,873 5,817 1,838 1,617 88% Oceania % Sub-Saharan Africa 2, ,643 1,816 5, % World 270, , , , , ,815 66% 200, , , , , ,000 80,000 60,000 40,000 20,000 0 North America Caribbean Central America South America Europe Middle East/N.A. (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

82 U.S. Exports of SMP/NDM 2009 vs Volume (000 MT) Source: USDEC

83 U.S. EXPORTS OF WHOLE MILK POWDER (Metric Tons) % of 2008 North America 2,766 3,823 4,687 3,387 9,551 3,717 39% Caribbean ,482 1,246 23% Central America , % South America ,056 1, % Europe na Middle East ,838 1,677 59% Far East 10,913 7,051 4,941 6,887 5, % South Asia na Oceania % Sub-Saharan Africa % World 15,385 12,047 10,447 12,357 29,317 8,084 28% 12,000 10,000 8,000 6,000 4,000 2,000 0 North America Caribbean Central America South America Europe Middle East (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

84 U.S. EXPORTS OF FLUID MILK AND CREAM Liters (000) % of 2008 North America 27,833 22,031 22,545 43,736 43,312 44, % Caribbean ,812 2,727 3, % Central America % South America % Europe % Middle East % Far East ,429 1, % South Asia na Oceania % Sub-Saharan Africa % World 29,529 23,191 24,340 46,280 48,718 51, % 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 North America Caribbean Central America South America Europe Middle East Liters (000) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

85 U.S. Exports of Fluid Milk & Cream 2009 vs Volume (000 MT) (000 liters) Source: USDEC

86 U.S. EXPORTS OF BUTTER (Metric Tons) % of 2008 North America 4,594 1,378 1,631 4,969 6,320 2,219 35% Caribbean , % Central America , % South America % Europe ,312 19,238 1,053 5% Middle East/N.A ,195 3,877 11,155 32,832 15,858 48% Far East ,262 1,129 7% South Asia % Oceania , % Sub-Saharan Africa , % World 6,139 4,408 8,396 32,918 79,559 22,431 28% 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 North America Caribbean Central America South America Europe Middle East/N.A. (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

87 U.S. Exports of Butter 2009 vs Volume (000 MT) Source: USDEC

88 U.S. EXPORTS OF CHEESE - ALL TYPES (Metric Tons) % of 2008 North America 27,488 26,017 32,411 43,003 48,698 50, % Caribbean 3,344 3,779 5,278 6,528 8,258 8, % Central America 2,434 2,240 3,054 3,980 6,724 6,226 93% South America 1,957 2,266 2,313 2,457 2,494 2, % Europe 2,620 2,230 2,444 6,923 6,428 2,501 39% Middle East/N.A. 4,386 2,416 4,553 8,143 19,812 8,830 45% Far East 18,309 18,558 20,671 25,752 34,273 27,318 80% South Asia % Oceania ,393 3, % Sub-Saharan Africa % World 61,355 57,759 71,010 99, , ,493 83% 60,000 50,000 40,000 30,000 20,000 10,000 0 North America Caribbean Central America South America Europe Middle East/N.A. (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

89 U.S. Exports of Cheese 2009 vs Volume (000 MT) Source: USDEC

90 U.S. EXPORTS OF ICE CREAM (Metric Tons) % of 2008 North America 14,323 16,163 18,575 17,713 17,400 16,496 95% Caribbean 2,593 2,977 2,754 2,438 3,210 4, % Central America % South America % Europe 1,918 1,872 1,268 2,927 1,419 1,256 89% Middle East/N.A % Far East 3,465 3,390 2,407 1,365 1,637 1,618 99% South Asia % Oceania % Sub-Saharan Africa % World 23,897 26,121 26,501 25,777 25,331 25, % 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 North America Caribbean Central America South America Europe Middle East/N.A. (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

91 U.S. Exports of Ice Cream 2009 vs Volume (000 MT) Source: USDEC

92 U.S. EXPORTS OF YOGURT (Metric Tons) % of 2008 North America 2, ,134 1,202 1,875 1, % Caribbean 649 1,221 1,527 2,044 2,690 3, % Central America % South America % Europe % Middle East/N.A % Far East ,046 1, % South Asia na Oceania % Sub-Saharan Africa na World 3,981 3,330 4,122 5,101 5,685 6, % 4,000 3,500 3,000 2,500 2,000 1,500 1, North America Caribbean Central America South America Europe Middle East/N.A. (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

93 U.S. EXPORTS OF ANHYDROUS MILKFAT (Metric Tons) % of 2008 North America 2,086 2, ,322 3,764 2,607 69% Caribbean % Central America , % South America % Europe ,284 2, % Middle East/N.A % Far East , % South Asia na Oceania % Sub-Saharan Africa na World 2,287 3,326 1,757 6,807 9,285 5,782 62% 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, North America Caribbean Central America South America Europe Middle East/N.A. (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

94 U.S. EXPORTS OF MILK ALBUMIN (WPI) 1 (Metric Tons) % of 2008 North America 3,874 4,657 4,541 6,880 3,831 5, % Caribbean % Central America % South America ,053 1, % Europe 1, ,687 1,446 1,999 1,461 73% Middle East/N.A % Far East 2,697 1,735 3,499 3,952 4,188 5, % South Asia % Oceania % Sub-Saharan Africa % World 8,370 7,103 11,281 13,950 12,002 15, % 1 Category includes: Milk Albumin. 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 North America Caribbean Central America South America Europe Middle East/N.A. (Metric Tons) Far East South Asia Oceania Sub-Saharan Africa Source: U.S. Dairy Export Council

95 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S CASEIN IMPORTS W W W. A D P I. O R G

96 CASEIN IMPORTS AS A PERCENTAGE OF DOMESTIC DRY MILK AND WHEY PRODUCTS PRODUCTION, (figures in millions of pounds) Year Total Dry Milk & Whey Production Casein Imports Casein Percent of Total , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

97 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S PRODUCT DEFINITIONS W W W. A D P I. O R G

98 Milk Product Definitions Nonfat Dry Milk is the product resulting from the removal of fat and water from milk and contains the lactose, milk proteins, and milk minerals in the same relative proportions as in the fresh milk from which it was made. It contains not over 5% by weight of moisture. The fat content is not over 1.5% by weight unless otherwise indicated. Dry Whole Milk is the product resulting from the removal of water from milk and contains not less than 26%, but less than 40% milkfat and not more than 5.0% moisture (as determined by weight of moisture on a milk solids-not-fat basis). Dry Buttermilk is the product resulting from the removal of water from liquid buttermilk derived from the churning of butter. It shall contain not less than 4.5% milkfat and not more than 5% moisture. Dry buttermilk shall have a protein content of not less than 30%. Dry Buttermilk Product is the product resulting from the removal of water from liquid buttermilk derived from the churning of butter. It shall contain not less than 4.5% milkfat and not more than 5% moisture. Dry buttermilk product contains less than 30% protein, the label of which should specify the minimum protein content.

99 Whey Product Definitions Whey is the liquid substance obtained by separating the coagulum from milk, cream, or skim milk in cheese making. Whey obtained from a procedure in which a significant amount of lactose is converted to lactic acid, or from the curd formation by direct acidification of milk, is known as acid whey. Whey obtained from a procedure in which there is insignificant conversion of lactose to lactic acid is known as sweet whey. Sweet whey has a maximum titratable acidity of not more than 0.16 percent, calculated as lactic acid, and an alkalinity of ash not more than 225 ml of 0.1N Hydrochloric acid per 100 grams. The acidity of whey, sweet or acid, may be adjusted by the addition of safe and suitable ph-adjusting ingredients. Concentrated Whey is the liquid substance obtained by the partial removal of water from whey, while leaving all other constituents in the same relative proportions as in whey. Dry Whey is the substance obtained by the removal of water from whey, while leaving all other constituents in the same relative proportions as in whey. Reduced Lactose Whey is the substance obtained by the removal of lactose from whey. The lactose content of the finished dry product shall not exceed 60 percent. Removal of the lactose is accomplished by physical separation techniques such as precipitation, filtration, or dialysis. As with whey, reduced lactose whey can be used as a fluid, concentrate, or a dry product form. The acidity of reduced lactose whey may be adjusted by the addition of safe and suitable ph-adjusting ingredients. Reduced Minerals Whey is the substance obtained by the removal of a portion of the minerals from whey. The dry product shall not contain more than 7 percent ash. Reduced minerals whey is produced by physical separation techniques such as precipitation, filtration, or dialysis. As with whey, reduced minerals whey can be used as a fluid, concentrate, or dry product form. The acidity of reduced minerals whey may be adjusted by the addition of safe and suitable ph-adjusting ingredients. Whey Protein Concentrate is the substance obtained by the removal of sufficient non-protein constituents from whey so that the finished dry product contains not less than 25% protein. Whey protein concentrate is produced by physical separation techniques such as precipitation, filtration, or dialysis. As with whey, whey protein concentrate can be used as a fluid, concentrate, or dry product form. The acidity of whey protein concentrate may be adjusted by the addition of safe and suitable ph-adjusting ingredients.

100 Whey Protein Isolate is the substance obtained by the removal of sufficient non-protein constituents from whey so that the finished dry product contains not less than 90% protein on a dry basis. Whey protein isolate is produced by separation techniques such as precipitation, membrane filtration and/or ion exchange. Whey protein isolate can be used as liquid or as a dry product. The acidity of whey protein isolate may be adjusted by the addition of safe and suitable ph-adjusting ingredients. Dairy Product Solids are modified dairy products (permeates and products derived therefrom) obtained by the removal of protein and/or lactose, and/or minerals from milk or whey. The dry product shall contain at least 59% lactose, 10% protein maximum, and 27% ash maximum. Removal of the dairy constituents is accomplished by separation techniques such as precipitation, membrane filtration or dialysis. Dairy Product Solids can be used as liquid or as a dry product. The acidity of dairy product solids may be adjusted by the addition of safe and suitable ph-adjusting ingredients.

101 D A I R Y P R O D U C T S U T I L I Z A T I O N A N D P R O D U C T I O N T R E N D S ADPI INFORMATION & MEETINGS W W W. A D P I. O R G

102 About the American Dairy Products Institute The American Dairy Products Institute (ADPI) is the leading association for manufactured dairy products. ADPI's main purpose is to promote the acceptance and use of processed dairy products, both nationally and internationally, by communicating the many positive health and nutritional attributes of milk-derived products. The American Dairy Products Institute was formed in April 1986 through a merger of the 61- year-old American Dry Milk Institute (ADMI) and the 15-year-old Whey Products Institute (WPI). In April 1997, the scope of the organization was further expanded by merging with the Evaporated Milk Association. A cheese division was established in ADPI's efforts today build upon three-quarters of a century of work completed by these predecessor associations. Additionally, ADPI serves its membership by: Representing the industry's interests in government and regulatory affairs; Establishing uniform product and quality standards; Providing technical assistance and marketing support; Collecting and disseminating key production and utilization statistics; Monitoring and disseminating current dairy industry information and new developments; Collaborating with other dairy associations on issues of common interest; and Providing a strong, effective voice for the manufactured dairy products industry. Current ADPI membership includes manufacturers of evaporated and condensed milk, dry milk, cheese and whey products; firms that provide supplies and services to processors; and many companies that either use or trade these manufactured dairy products or are otherwise involved in the dairy industry. While the majority of ADPI members are located in the U.S., the organization also represents many international members. American Dairy Products Institute 116 N. York St., Suite 200 Elmhurst, Illinois

103 UPCOMING ADPI CONFERENCES/SEMINARS o 2010 ADPI/Cornell University Technical Symposium Hilton Garden Inn, Ithaca, NY September o 2010 ADPI Dairy Ingredients Seminar Cliffs Resort, Shell Beach, CA October 5-6 o 2011 ADPI/ABI Annual Conference Chicago Marriott Downtown April o 2011 International Whey Conference Chicago Marriott Downtown September o 2012 ADPI/ABI Annual Conference Chicago Marriott Downtown April 29 May 1 o 2013 ADPI/ABI Annual Conference Chicago Marriott Downtown April 28 30

104 Jim Page Memorial Scholarship The ADPI Jim Page Memorial Scholarship was created in memory of James J. Page who enjoyed a distinguished marketing career in the dairy industry and demonstrated exceptional leadership skills while serving as the Chief Executive Officer of ADPI from 2002 through This scholarship is awarded to the dependent of an employee or to an employee whose company is a member of ADPI. The scholarship is a one year grant, of a minimum of $1,000. The recipient of this scholarship must be in good standing academically at an accredited college or university, pursuing a course of study that will lead to a bachelor s degree, have completed at least one full semester (or the equivalent thereof) and must have a cumulative GPA of at least 3.0 on a standard 4.0 scale. This award may be used for any educational expenses that a student may have in furthering his/her education. (Such as, but not limited to: tuition, books, room & board etc.). The recipient of the scholarship will be announced at the ADPI/ABI Annual Conference held in Chicago, IL each year. Scholarship applications can be downloaded at the ADPI website at or by contacting the ADPI office at info@adpi.org or Hunter, Walton & Co., Inc. International Ingredient Corporation Michigan Milk Producers Assn. Swiss Valley Farms Tedford/Tellico, Inc. The Milky Whey Inc. Trega Foods, Ltd. United International Industries, Inc. Less than $1,000 ADPI Wishes to Acknowledge the Generous Contributions of the Following Organizations to the Jim Page Memorial Scholarship $5,000 or more Davisco Foods International, Inc. $2,500 - $4,999 Hilmar Cheese Company $1,000 - $2,499 Agri-Mark, Inc. Brewster Dairy, Inc. Darigold, Inc. Keough Ledman Associates, Inc. Merrick Animal Nutrition, Inc. O-AT-KA Milk Products Coop., Inc. Agri-Dairy Products, Inc. Associated Milk Producers, Inc. Bluegrass Dairy & Food LLC California Dairies, Inc. Carlyn Dairy Products, Inc. DCI, Inc. Filtration Engineering Co., Inc. Franklin Farms East, Inc. Jim Page Memorial Scholarship Contribution Form I would like to make the following contribution to the Jim Page Memorial Scholarship. $ Pay by credit card Visa Mastercard Discover American Express Card Number: Expiration Date: Name on Card: Signature: Checks and forms can be sent to: Jim Page Memorial Scholarship c/o American Dairy Products Institute ~ 116 N. York Street, Ste. 200, Elmhurst, IL Tax-deductability status pending