REVISED: Study Underscores Benefits of Milk Protein Concentrate (MPC), Casein and Caseinates 5/19/2003
From: Kathleen Nelson, 202-220-3553, or Julianne Corbett, 202-715-1516, both for Sparks Companies, Inc. WASHINGTON, May 19 -- Sparks Companies, Inc. today released the most definitive and comprehensive report to-date on the economic and trade effects of a proposed tariff rate quota (TRQ) on imported milk protein concentrates (MPC), casein and caseinates. "The report shows that imports of MPC, casein and caseinates are not the cause of dairy price declines, or reduced dairy farmer income," said Dr. Bruce Scherr, President and CEO of Sparks Companies, Inc. "In addition, we conclude that there is no trade 'loophole' on these proteins and a TRQ, if enacted by Congress, would almost certainly lead to a WTO dispute by suppliers seeking compensation and or retaliation against U.S importers," continued Scherr. The Sparks research team evaluated the MPC, casein and caseinates issue including relationship to farm milk prices, substitutability with nonfat dry milk, international trade implications and consequences of a TRQ on the American economy. The study contains other key findings, including: -- MPC, casein and caseinates are versatile and functional dairy ingredient made to highly detailed specifications that cannot be met readily with other alternatives, including nonfat dry milk. -- There is no commercial domestic production of MPC, casein or caseinates because the U.S. dairy price support program provides an economic disincentive for domestic production of these highly-valued proteins; forcing food manufactures to rely on imports. -- Dairy protein blends are properly classified under the Harmonized Tariff Schedule of the United States (HTSUS subhead 0404.90.1000). This category was intended for products containing solely natural milk constituents that are more than 40 percent casein and lactalbumin by weight, regardless of how they are manufactured. -- Congress deliberately decided not to subject these products to Section 22 quotas and the TRQs that succeeded them. -- There is no evidence that the ingredients reduce dairy farmer incomes because the U.S. does not produce these products and NFDM prices are protected by federal programs. Sparks Companies Inc. is a world leader in comprehensive agriculture, food industry, agribusiness and commodity research, information, analysis and consulting. Sparks serves many of the world's leading agribusinesses. The special study was done for the U.S. Coalition of Nutritional Ingredients, which represents a broad-based group of more than 50 associations, taxpayer and consumer organizations, and food companies and their employees. The full report is available by going to http://www.sparksco.com | |