For a while now some milk manufacturers have been diluting their milk with permeate which is much cheaper than whole milk and so represents a huge cost-saving, especially when the two big supermarkets are pushing prices down with their own milk brands.
The composition of milk is regulated by the Food Standards Code and milk manufacturers may alter the composition of milk as long as it stays within the Code’s limits.
Milk composition is altered for a variety of legitimate reasons such as producing low fat, no fat, fat-modified, calcium-boost or high-protein varieties. It is also used to “standardise” the milk. The quality of milk changes through the seasons. When we were kids we used love the spring milk which was rich and extra creamy due to the increased lushness of the pastures. Manufacturers, however, want a standardised product and they told Choice when they investigated permeate use that “standardisation ensures all milk has a consistent composition”.
Permeate is also used in baked goods and other manufactured foods where it used to replace more expensive ingredients such as whey and lactose. Products that use whey and lactose are a diverse group including infant formulas, snack foods, margarines, soups, nutraceuticals and pharmaceuticals.
The real problem with permeate, according to pundits, doesn’t lie with its use, or its composition or the fact that it was once considered a waste product. The problem we have with it is that consumers don’t know they buying it. Now niche milk companies are cashing in on this with claims that their milk is "permeate-free" and you'll pay a premium for it (see example below).
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