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Is the market value of fat extracted from whole milk to then make butter and cream worth more than the cost of processing the fat from whole milk to make nonfat milk?

Answered on August 19, 2014
Created February 03, 2011 at 5:46 PM

If so, how does the lipid hypothesis (e.g., the fear of fat) skew the market price of nonfat milk allowing for its price to be much higher than if we lived in a world without the lipid hypothesis?

1d48caa387c73a3a3ba0c825d07864c6

on February 04, 2011
at 12:08 AM

OK, Elizabeth, I read your profile, I realize you're just starting out on paleo, good for you, I wish you well, and I'm absolutely being genuine, truly. I won't ask multi-faceted questions, just two simple ones broken out without any of my "preaching" (to whom and for what am I proselytizing? not sure what you mean).... What is the processing cost of extracting fat out of whole milk? What is the value of fat extracted out of whole milk to make butter and cheese? Answers to these 2 questions provide powerful data points.

1d48caa387c73a3a3ba0c825d07864c6

on February 03, 2011
at 11:18 PM

@queenofstoneage, absolutely agree, and I wouldn't touch it, so you're hitting the essence of this question. nonfat milk should be close to worthless, but the lipid hypothesis has made its price on par with whole milk. If the cost of processing is less than the worth of extracted fat, then dairy industry is making a killing, I'm asking the question, just how much are they skimming off of dupes who pay for nonfat yogurt, milk, etc. It could be in the billions every years... and a huge reason for making raw milk hard to get... and for industrial dairy to lobby for lowfat food pyramid.

C61399790c6531a0af344ab0c40048f1

on February 03, 2011
at 09:53 PM

Not sure why you are so worried about the price of non-fat milk - most people on this site wouldn't touch the stuff.

1d48caa387c73a3a3ba0c825d07864c6

on February 03, 2011
at 09:22 PM

I don't have a cause, other than asking the question about how can nonfat milk be priced at the same level as whole fat milk. It's a complex question with a complex answer, as some commenters below duly note. I think this question is meant for an economics board with folks that hopefully have an understanding of paleo nutrition. A small subset of people indeed. Oh, well, I thought this site was supporting the "cause" I was seeking with this question.

0bcefaa82dc94f93ce705f86e235f335

(1591)

on February 03, 2011
at 09:10 PM

This is a second attempt, I think, to indirectly recruit people to your cause, not a real question.

0bcefaa82dc94f93ce705f86e235f335

(1591)

on February 03, 2011
at 09:09 PM

But you're not asking a question, you're proselytizing. This and your previous question are disingenuous.

1d48caa387c73a3a3ba0c825d07864c6

on February 03, 2011
at 08:11 PM

it is, I'm not versed well at asking questions on Paleo Hacks, I didn't mean to commit a "party foul" on my previous attempt, this is my attempt at making it more straight forward. "Is the fat taken out worth more than the price difference?", is the simplest way to ask but there's more to my question, so I added background to try to give that background to my question, lamely it seems.

1d48caa387c73a3a3ba0c825d07864c6

on February 03, 2011
at 06:39 PM

thanks, my thoughts align with yours. I assume fear of fat biases the price of NONFAT milk upward given that now fat is taken out. I would guess WITHOUT lipid hypothesis in vogue the price of nonfat milk would be much less than the price of whole milk. I just don't know relationship between fat extraction processing costs and worth of fat extracted from milk re what/how lipid hypothesis influences price.

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5 Answers

3
Medium avatar

(3259)

on February 03, 2011
at 08:07 PM

I don't know that the price of non-fat milk would change, only the amount produced and sold. Milk, in Canada anyway, is roughly the same price regardless of fat content. I would imagine that producers would simply shift their product mix. As it stands now, fattier (ie. SCARIER thanks to the "lipid hypothesis") is the same price as skim, it's just purchased less.

Now...Canada is one of those SCARY countries (thanks to the "communist hypothesis") that supply-manages its milk production. Left to the free market, who knows...

2
Medium avatar

on February 03, 2011
at 06:46 PM

I've found that the fattiest cuts of grass-fed lamb are the cheapest for me. I couldn't be happier.

1
4145b36f1488224964edac6258b75aff

(7821)

on February 03, 2011
at 06:01 PM

You've built a lot of assumptions into your question. You seem to think that fear of fat would bias the price of fat upwards; fat is an inevitable by-product of making food from animals, so if anything fear of fat would bias the price downwards because demand wouldn't keep up with supply.

I think this is actually exactly what you see in the stores when you go to buy butter or cream. If you know a butcher you can sometimes get fat trimmings for very cheap, since they'd otherwise go in the trash. Demand for lean meat is higher, or at least stores and other places are often offering food with lower fat content, which means the few places you actually can buy fat ought to be cheaper. Basic supply/demand.

In fact I think animal fat may be the cheapest way of getting calories.

1d48caa387c73a3a3ba0c825d07864c6

on February 03, 2011
at 06:39 PM

thanks, my thoughts align with yours. I assume fear of fat biases the price of NONFAT milk upward given that now fat is taken out. I would guess WITHOUT lipid hypothesis in vogue the price of nonfat milk would be much less than the price of whole milk. I just don't know relationship between fat extraction processing costs and worth of fat extracted from milk re what/how lipid hypothesis influences price.

0
E1fd3a5ea90cdbceb8a2aa4bcfa1b923

(474)

on February 03, 2011
at 06:44 PM

Isn't this just a rewording of your previous question http://paleohacks.com/questions/21175/is-skim-milk-a-scam?

0bcefaa82dc94f93ce705f86e235f335

(1591)

on February 03, 2011
at 09:09 PM

But you're not asking a question, you're proselytizing. This and your previous question are disingenuous.

1d48caa387c73a3a3ba0c825d07864c6

on February 03, 2011
at 08:11 PM

it is, I'm not versed well at asking questions on Paleo Hacks, I didn't mean to commit a "party foul" on my previous attempt, this is my attempt at making it more straight forward. "Is the fat taken out worth more than the price difference?", is the simplest way to ask but there's more to my question, so I added background to try to give that background to my question, lamely it seems.

1d48caa387c73a3a3ba0c825d07864c6

on February 04, 2011
at 12:08 AM

OK, Elizabeth, I read your profile, I realize you're just starting out on paleo, good for you, I wish you well, and I'm absolutely being genuine, truly. I won't ask multi-faceted questions, just two simple ones broken out without any of my "preaching" (to whom and for what am I proselytizing? not sure what you mean).... What is the processing cost of extracting fat out of whole milk? What is the value of fat extracted out of whole milk to make butter and cheese? Answers to these 2 questions provide powerful data points.

-1
5edbf85deaf83e13b176df023abb154d

on February 03, 2011
at 05:48 PM

Your title is convoluted.

I'll just give it a guess here and say YES.

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