Table 1Prices Per Pound of Protein and Lactose for Selected Dry ProductsSource: Dairy Market News

JAN 00FEBOOMAR 00APR 00MAY 00JUNOOJULOOAUGOOSEP 00OCTOONOVOODEC 00JAN 01FEB01MAR 01APR 01MAY 01JUN01JUL01AUG01SEP 01OCT01NOV01DEC 01JAN 02FEB02MAR 02APR 02MAY 02JUN02JUL02AUG02SEP 02OCT02NOV02DEC 02JAN 03FEB03MAR 03APR 03MAY 03JUN03JUL03AUG03SEP 03OCT03NOV03DEC 03JAN 04FEB04

Pricj0.43530.45400.51730.59190.67000.73590.78030.76970.75130.73370.73250.73990.76740.78700.79000.79500.79500.79500.78930.78070.78000.76730.74900.70810.66630.65120.61610.57520.51860.46880.43630.42520.44610.46750.50220.51250.51250.51250.50860.48840.45300.40270.41270.44670.48270.52160.55220.55680.53110.4746

WPC34ProteigLparity

1.28031.33531.52151 .74091.97062.16442.29502.26382.20972.15792.15442.17622.25712.31472.32352.33822.33822.33822.32152.29622.29412.25682.20292.08261.95971.91531.81211.69181.52531.37881.28321.25061.31211.37501.47711 .50741.50741.50741 .49591.43651.33241.18441.21381.31381.41971.53411.62411.63761.56211.3959

Dry WheyLactose parity Price Protein parity

0.65950.68790.78380.89681.01521.11501.18231.16621.13831.11171.10981.12111.16271.19241.19701.20451.20451.20451,19591.18291.18181.16261.13481.07291.00950.98670.93350.87150.78580.71030.66110.64420,67590.70830.76090.77650.77650.77650.77060.74000.68640.61020.62530.67680.73140.79030.83670.84360.80470.7191

0.19090.17740.17380.17220.17140.17340.18060.18380.18380.18380.18960.20180.22620.23380.23970.25110.26060.26770.27010.27270.27250.27380.27380.26410.23780.22160.21130.19470.17060.15380.14520.14810.16460.19160.21220.21630.18160.15860.15250.14310.13550.13800.15150.17170.18360.19310.19470.18180.16860.1620

Page

1.46851.36461.33691,32461.31851.33381 .38921.41381.41381.41381.45851.55231.74001.79851.84381.93152.00462.05922.07772.09772.09622.10622.10622.03151.82921.70461.62541.49771.31231.18311.11691.13921.26621.47381 .63231.66381 .39691.22001.17311.10081.04231.06151.16541.32081.41231.48541.49771.39851.29691.2462

1

Lactose_actose parity Price

0.21940.20390.19980.19790.19700.19930.20760.21130.21130.21130.21790.23200.26000,26870.27550.28860.29950.30770.31050.31340.31320.31470.31470.30360.27330.25470.24290.22380.19610.17680.16690.17020.18920.22020.24390.24860.20870.18230.17530.16450.15570.15860.17410.19740.21100.22200.22380.20900.19380.1862

0.20000.20000.20000.20000.20000.19380.17760.17200.16750.16500.16500.16500.16750.16750.16980.17830.18480.19740.20750.20750.20750.21750.21750.21780.22250.22250.22250.20240.18320.17500.15910.15750.15830.16300.16500.16520.16750.17000.17010.17660.17860.18050.19050.19490.20100.21250.21250.21420.22500.2250

Table 1Prices Per Pound of Protein and Lactose for Selected Dry ProductsSource: Dairy Market News

MAR 04APR 04MAY 04JUN04JUL04AUG04SEP 04OCT04NOV04DEC 04JAN 05FEB05MAR 05APR 05MAY 05JUN05JUL05AUG05SEP 05OCT05NOV05DEC 05JAN 06FEB06MAR 06APR 06MAY 06JUN06JUL06AUG06SEP 06OCT06NOV06DEC 06JAN 07FEB07Avg.

Price0.45990.55050.63810.65500.65160.62330.61080.61000.61410.63920.70330.75090.78160.81950.85980.89070.90750.89560,85870.85230.84160.81860.79430.74820.68640.62000.59530.58000.58580,61000.66260.74530.81820,86980.99581.17510.6614

WPC34Protein parity

1.35261.61911.87681.92651.91651.83321.79651.79411.80621.88002.06852.20852.29882.41032.52882.61972.66912.63412.52562.50682.47532.40762.33622.20062.01881,82351.75091,70591.72291.79411.94882.19212.40652.55822.92883.45621.9452

Lactose parity Price0.69680.83410.96680.99240.98730.94440.92550.92420.93050.96851.06561.13771.18421.24171 .30271,34951.37501 .35701.30111.29141 .27521.24031.20351.13361.04000.93940.90200.87880.88760.92421.00391.12921.23971.31791,50881.7805

0.18210.23350.26810.26280.23080.21580.21860.22940.24300.25360.25970.26340,27080,27910.28770.29690.30740.31070.32050.32240.32980.34030.34910.35080.33360.30840.29970.29000.29220.30490.32980.36400.40430.44060.50460.5895

1.0021 0.2437

Dry WheyProtein parity

1.40081.79622.06232.02151.77541.66001.68151.76461.86921.95081.99772.02622.08312.14692.21312.28382.36462.39002.46542,48002.53692.61772,68542.69852.56622.37232.30542.23082.24772.34542.53692.80003.11003.38923.88154.53461.8748

LactoseLactose parity Price

0.20930.26840.30820.30210.26530.24800.25130.26370.27930.29150.29850.30280.31130.32080.33070.34130.35330.35710.36840.37060.37910.39110.40130.40320.38340.35450.34450,33330.33590.35050.37910.41840.46470.50640,58000.6776

0.22660.23750.23750.23750.22900.21750.20070.18780.18500.18500.17500.17500.17500.17980.18090.18840.19950.20030.20430.21530.21950.22000.23630.24250.24300.26000.27050.28470.32900.33890.36200.41880.42950.43500.55050.5934

0.2801 0.2201

Page 2

Table 2Prices Per Pound of Protein and Lactose for Selected Dry ProductsSource: Dairy Market News

Dry Buttermilk Nonfat Dry Mi!k WPC 34 DryPrice

JAN 00FEE 00MAR 00APR 00MAY 00JUNOOJULOOAUGOOSEP 00OCTOONOVOODEC 00JAN 01FEE '01MAR 01APR 01MAY 01JUN01JUL01AUG01SEP 01OCT01NOV01DEC 01JAN 02FEB02MAR 02APR 02MAY 02JUN02JUL02AUG02SEP 02OCT02NOV02DEC 02JAN 03FEB03MAR 03APR 03MAY 03JUN03JUL03AUG03SEP 03OCT03NOV03DEC 03JAN 04FEB04

0.65130.60700.62670.69750.75180.84950.88700.89780.93180.95330.96400.97550.98500.98420.98341.01021.04771 .06211.06311.03631.04291.04501.04501 .03751.02210.96160.90600.88520.85180.80250.74970.73410.73780.75000.75740.77290.74290.73000.72980.71500.69480.67830.72480.81200.83860.84860.85500.85770.86000.8813

Protein parity Price1.91561.78531 .84322.05152.21122.49852.60882.64062.74062.80382.83532.86912.89712.89472.89242.97123.08153.12383.12683.04793.06743.07353.07353.05153.00622.82822.66472.60352.50532.36032.20502.15912.17002.20592.22762.27322.18502.14712.14652.10292.04351.99502.13182.38822.46652.49592.51472.52262.52942.5921

1 .00501.00501.00501.00501.00501.00501.00501.00501.00631.00751.00751.00861.01001.01001.01001.01011.01181 .00260.95500.94220.94130.94330.92350.91840.91230.91050.90690.90200.89650.89630.89930.90250.90510.90630.90980.86000.81480.80680.80370.80230.80130.80130.80150.80790.80750.80750.80750.80880.80340.8025

Protein parity Price2.95592.95592.95592.95592.95592.95592.95592.9559 '2.95972.96322.96322.96652.97062.97062.97062.97092.97592.94882.80882.77122.76852.77442,71622.70122.68322.67792.66742.65292.63682.63622.64502.65442.66212.66562.67592.52942.39652.37292.36382.35972.35682.35682.35742.37622.37502.37502.37502.37882.36292.3603

0.43530.45400.51730.59190.67000.73590.78030.76970.75130.73370.73250.73990.76740.78700.79000.79500.79500.79500.78930.78070.78000.76730.74900.70810.66630.65120.61610.57520.51860.46880.43630.42520.44610.46750.50220.51250.51250.51250.50860.48840.45300.40270.41270.44670.48270.52160.55220.55680.53110.4746

WheyProtein Parity Price Protein parity

1.28031 .33531.52151.74091 .97062.16442.29502.26382.20972.15792.15442.17622.25712.31472.32352.33822.33822.33822.32152.29622.29412.25682.20292.08261.95971.91531.81211.69181.52531 .37881 .28321.25061.31211 .37501.47711 .50741 .50741 .50741.4959 .1.43651 .33241.18441.21381.31381.41971.53411.62411.63761 .56211.3959

0.19090.17740.17380.17220.17140.17340.18060.18380.18380.18380.18960.20180.22620.23380.23970.25110.26060.26770.27010.27270.27250.27380.27380.26410.23780.22160.21130.19470.17060.15380.14520.14810.16460.19160.21220.21630.18160.15860.15250.14310.13550.13800.15150.17170.18360.19310.19470.18180.16860.1620

1.46851.36461.33691.32461.31851.33381.38921.41381.41381.41381.45851.55231.74001.79851.84381.9315 '2.00462.05922.07772.09772.09622.10622.10622.03151.82921.70461.62541.49771.31231.18311.11691.13921 .26621.47381.63231.66381.39691.22001.17311.10081.04231.06151.16541 .32081.41231.48541.49771 .39851.29691 .2462

Page 1

Table 2Prices Per Pound of Protein and Lactose for Selected Dry ProductsSource: Dairy Market News

DryPrice

MAR 04APR 04MAY 04JUN04JUL04AUG04SEP 04OCT04NOV04DEC 04JAN 05FES 05MAR 05APR 05MAY 05JUN05JUL05AUG05SEP 05OCT05NOV05DEC 05JAN 06FEE 06MAR 06APR 06MAY 06JUN06JUL06AUG06SEP 06OCT06NOV06DEC 06JAN 07

0.90720.94821.00941.03501.03501.03771.04001.04001.03500.92800.90530.91720.94080.94430.90920,90230.90630,91760.92640.92000.92000.91200.85730.81110.74850.66000.64520.64070.72930.81070.88250.91670.96601 .00581.0830

FEB 07 ' 1,2601Avg, 0.8848

Buttermilk Nonfat Dry Milk WPC 34 DryProtein parity Price

2.66822.78882.96883.04413,04413.05213.05883.05883.04412.72942.66262.69762.76712,77742.67412.65382,66562.69882.72472.70592.70592.68242.52152.38562.20151.94121.89761 .88442.14502.38442.59562.69622.84122.95823.18533.7062

0,80630.82010.85130.85000.84430.84110.84210.83760.84560.87820,89450.91800.92680.93850.94710.93670.93190.94860.96460.98481,00150.98990.95180.87070.82220.81000.80860.81090.82280.86920.91680.96491 .00571.05231.12681.2357

2.6022 0.9151

Protein parity Price2.37152,41212.50382.50002,48322.47382.47682.46352.48712.58292.63092.70002.72592.76032.78562,75502.74092.79002.83712.89652.94562.91152.79942.56092.41822.38242.37822,38502.42002.55652.69652.83792.95793.09503.31413.6344

0.45990.55050.63810.65500.65160.62330.61080.61000.61410.63920.70330,75090.78160.81950.85980.89070.90750.89560.85870.85230.84160.81860.79430.74820.68640.62000.59530.58000.58580.61000.66260.74530.81820.86980,99581.1751

2.6915 0.6614

WheyProtein parity Price Protein parity

1.35261.61911,87681.92651,91651.83321.79651.79411 .80621 .88002.06852.20852.29882.41032.52882.61972.66912.63412.52562.50682.47532.40762.33622.20062.01881.82351.75091.70591.72291.79411.94882.19212,40652,55822.92883.4562

0.18210.23350.26810.26280.23080.21580.21860.22940.24300,25360.25970.26340,27080.27910.28770.29690.30740.31070.32050.32240.32980.34030.34910.35080.33360.30840.29970.29000.29220.30490.32980.36400.40430.44060.50460.5895

1.9452 - 0.2437

1 .40081 .79622.06232.02151.77541.66001.68151.76461.86921.95081 .99772.02622.08312.14692.21312.28382.36462.39002.46542.48002.53692.61772,68542.69852.56622.37232,30542.23082.24772.34542.53692.80003.11003.38923.88154.53461.8748

Page 2

Table 3Annual Production of Dry ProductsSource; Brian W. Gould, University of Wisconsin-Madisonhttp://www.aae.wisc,edu/future/front_production.hfm

Year2003200420052006

Estimated Ibs.Dxy.Whey Protein (13%) WPC f25%-49.9%)1,076.42 139,93 272,041,034.90 1 34.54 271.751,045.82 1 35.96 274.021,093.08 142.10 290.98

Estimated Ibs. Estimated Ibs, Estimated tbs. Total Pounds ProteinProtein (34%) WPC (50%-89.9%} Protein (70%) Whev Protein Isolates Protein (90%) In WPCs & WPI

92.4992.4093.1798.93

85,9184.1099,94121,21

60. 1358.8769.9584.8S

22.3327,6834.4632.06

20. 1024.9131.0128.85

172.73176.18194. 13212.63

Lactose

613,91665,62668,12698.55

Production data is in million pounds

Table 4Contribution of Whey to Class II! Price(Actual FMMO Component Tests)

Current FormulaMonth

Apr 03May 03JunOSJulOSAugOSSepOSOct03NovOSDec 032003 averageJan 04'Feb04Mar 04Apr 04May 04Jun04Ju!04Aug04Sep04Oct04Nov04Dec 042004 averageJan 05Feb05Mar 05Apr 05May 05JunOSJulOSAug05Sep05OctOSNovOSDec 052005 averageJan 06Feb06Mar 06Apr 06May 06Jun06Jul06Aug06Sep06octoeNovOSDec 062006 averageJan 07

Whey price0.15820.14500.13960.14700.16150.17550.18920.19470.19410.16720.18010.16770.18170.26020.29920.28900.26070.22460.21620.22470.23670.24230.23190,24630.24780.25130.25800.26030.26960.27940.28690.29600.30380.31490.32420.27820.34160.35310.34090.30540.28050.28080,28100.29650.31910.35570,38000.40790.32850.4680

OS price-0.00082-0.01442-0.01998-0.012360.002580.017000.031110.036770.036150.00840.021730.008960.023380.104240.144410.133900,104750,067570.058920.067670.080030.085800.07510.089920.091460.095070.101970.104340.113920.124010.131740.141110.149140.160580.170160.12280.188080.199920.187360.150790.125150,125450.125660.141630.164900.202600,227630,256370.16720.31827

Proposed FormulaOS test Whey Value/cwt Whey Proteirs Price

5.735.735.735.695.685.685.675.695.70

5.705.705,695.705.715.715.715.705.705.685.685.685.68

5.6955.695.705.725.725.735.735.725.705.695.695.705.69

5.70675.725.735.735.725.745,715,715.705.695.705.695,69

5.71085.71

-0.0047-0.0826-0.1145-0.07030.01460,09650.17640.20920.2061

0.04790.72390,05700.73330.59520.82460.76460,59710,38510.33460.38440.45460.4873

0.42800,57160.52730.54380.5833O.S9790.65280.70930.75090.80290.84860.91530.9682

0.70051,07581.14561.07360.86250.71830.71630.77750.80730.93837.75487.29527.4587

0.95507.8773

-0,0016-0.0274-0.0380-0.02350.00490,03230,05920.07000.0688

0.01610.04140,01710,04450.19840.27480.25480.19930.12860.11210.12880.15230.1633

0.14290,17110.17400.18090.19400,19850.21680.23600.25070.26850.28380.30560.3238

0.23360.35790,38040.35650.28690.23810.23870,23910.26950.31380.38550.43320.4878

0.31820.6056

Protein test Whey Value/cwt3.002,972.962.922.933.023.103.123.11

3,01443.093.073.053.022.9S2.962.95 .2.993.033.113.133.11

3.04083.083.063.043.013.002,932.912.953.033.113.143,14

3,03333.073.073.063.023.012.972.942,973.063.133.143.12

3.04673.09

-0.0047-0,0875-0.7726-0.06870.07440.09770.78350.27830.2740

0.05120.72780.05230.73570.59900.87890.75420.58800.38440.33970.40050.47670.5078

0.43210.52700.53260.55000.58470.59560.63520.68670.73950.87360.88260.95957.0767

0.71037.09877.76797.09700.86660.71680.70900.70300.80040.96021.20671.36011.5221

0.97107,8774

Value chg0.00000.00110.00190.0017

-0.00030.00110.00710.00910.0079

0.00330.00390.00140.00240.0038-0.0057-0.0104-0.0091-0.00070.00510.01610.02210.0204

0.00410.01540.01120.00620.0008

-0.0022-0.0176-0.0226-0.01140.01070.03400.04420.0485

0.00980.02290.02240.01740.0040

-0.0015-0.0073-0.0145-0.00680.02190.05190.06490.0633

0.01590.0541

Graph 1WPC 34 and Dry Whey Protein and Lactose Parities

5.0000

4.5000

4.0000

3.5000

3,0000

~ 2.5000

2.0000

1.5000

1,0000

0.5000

0.0000

—• WPC 34 Protein parity '..

— - >WPC 34 Lactose parity :

— —Dry Whey Protein parity

- - - Dry Whey Lactose parity ;

• • • • Lactose Price •

S

Month

Graph 2Dry Products Protein Parity

5,0000 r

4.5000

4.0000

3.5000

3.0000

•g 2,'5000a.

2.0000

1,5000

1.0000

0.5000

0.0000

;- - - Dry Buttermilk j-I Nonfat Dry Milk !•

WPG 34 \

.I-—- Dry Whey 1 . .

/,Month

Graph 3Total Protein Pounds in Dry Whey and Concentrated Products

250.00

200.00

to13C

I

O

150.00

100,00

50.00

0.002003 2004 2005

Year

2006

;0 Dry Whey'EllnWPCs&WPl