Protein will drive milk checks for the foreseeable future, by: Corey Geiger

ZISK
21 hours ago
1 min read

Key Points

While demand for full-fat dairy products remains strong, butterfat has moved to an oversupply with 5% to 6% gains in the past five months.
With major investment in plants to make protein-based dairy products, milk protein is poised for a bull-market run.
Strong demand for beef-on-dairy calves will continue to keep the U.S. dairy-cow herd at 30-year highs.

When given financial incentives, U.S. farmers are extremely talented at producing the product in demand. Dairy farmers are no exception. Over the past decade, butterfat led milk checks for eight of the 10 years. By 2021, the nation’s milk supply broke a seven-decade-old record for butterfat content at 3.95%. Inspired by milk check incentives, those records were shattered every year since, and this year butterfat will post another record close 4.3%. Keep in mind that butterfat levels were at 3.66% as recent as 2010.

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