Milk and Coffee – In the US, 80% of coffee is consumed with milk. In the retail space, lactose-free milk has exploded in popularity and is one of the main drivers for fluid milk sales rebounding. Yet few coffee shops offer lactose-free milk as an option and instead lean on plant-based milk alternatives to provide options without lactose. CDIC is continuing to engage
with the Specialty Coffee Association and attended the UC Davis Coffee Research Center meeting in Q4 2025. Through the SCA, CDIC learned that even though dairy is the main milk for coffee shops, dairy companies have not innovated with coffee functionality in mind as well as the plant-based milk beverage companies have. CDIC is collaborating with the Food Service team for participation in the SCA annual expo in 2026 to highlight the opportunities for dairy and lactose-free milk.
Process Innovation
MFGM Ingredients Dossier Research continues at UC Davis on the isolation and quantification of milk fat globule membrane material from butter and AMF co-streams, sourced from California processors. In addition, CDIC Staff kicked off a small project with internationally known consultancy group GIRA Foods to survey the domestic and international markets for ingredients rich in milk fat globule membrane (MFGM). Considering the large production of butter and AMF in California, large amounts of coproduct streams are generated that have the
potential to be value-added ingredients (instead of low value feed or incurring disposal costs), but it is also critical to determine market size, selling points, and typical prices. The information will be shared with processors to support building business cases. It will also identify potential technical needs and research gaps for future research projects.
High Pressure Processing of Milk –“Cold Pressed Raw Milk” CDIC staff attended the High Pressure Council meeting in October, and met with equipment suppliers, toll processors from California, as well as domestic and international researchers in the field. CDIC prepared a dossier: “Cold Pressed Milk” California -HPP Processing to increase Food Safety & Shelf-life of Raw Milk, Protect Consumer Trust,
which was submitted to CDRF, and is intended to be included in a comprehensive proposal for funding by CDFA in 2026. CDIC is working with Fresno State on the logistical elements of the research part of the project, to be conducted at the Food Innovation facility and labs.
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