Proof in the protein

The Agriculture Utilization Research Institute recently released results of a study to gauge interest in A2A2 milk.

“A2 is not necessarily replacing conventional dairy products at the stores, it’s just that retailers have additional space for A2 milk, even other A2 dairy products,” said Sanchez Philocles, a market research analyst at AURI.

The A2A2 study was launched because farmers reached out to the organization asking if it was worthwhile to convert their herd to A2A2 from a market standpoint.

According to the University of Minnesota, beta-casein makes up 30% of the milk protein in the form of A1 or A2. A2A2 milk is produced from cows that only have the A2 protein.

“At AURI, we thought it was a necessity to go out and find information, to see what is going on in the market and understand what the market opportunities are,” Philocles said.

Philocles said farmers across Minnesota were sent a survey to determine how many farmers are interested in A2A2 genetics and how many have already transitioned their herd to A2A2.

AURI received 75 responses. The results showed 35% of respondents are in the process of converting and 9% have already converted their herds to A2A2. Conversely, 48% have not converted, and 8% are unaware of A2A2 genetics. 

“Even among the 48% of farms that have not converted the herd, a very significant amount of them are interested in converting in the next 3-5 years,” Philocles said.

He said one thing that surprised him was the increase in demand for A2A2 products in the last three years, including ice cream and cheese.

Many factors affect demand for A2A2 milk, Philocles said.

“I think the first element would be the perception we have around A2 milk,” Philocles said. “We don’t know what the science says around A2 milk yet — if it’s different or if it’s healthier than conventional milk.”

Philocles said farmers who were interested in A2A2 genetics asked about the existing market opportunities and consumer interest for A2A2 milk.

“Very few of them are doing it because they think it’s healthier,” Philocles said. “A very few of them are doing it because some buyers are asking.”

Dairy processing cooperatives were not a big part of the motivation for farmers to breed for A2A2 genetics, Philocles said.

“At a certain point, there will be a change in the market,” Philocles said. “This is one of the gaps in our research because we didn’t have the chance to interview or investigate the processors.”

The next step for AURI will be to understand the processors’ thoughts and their plans regarding A2A2 milk. 

“In the future, … we will eventually see some dairy processors taking a stand and starting to process some value-added A2 milk products,” Philocles said.

Philocles said there were about five to 10 researchers who came together to complete the study.

“It was a whole team working to put the report together,” Philocles said.

Currently, milk, cheese, ice cream and sour cream are the only A2 milk products available, Philocles said.

“We need to understand that A2 is coming,” Philocles said. “A2 milk production is increasing in Minnesota. The opportunities exist for A2 value added products at retailers. We need to understand that and also understand the premium price at the retail level.”