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  • ZISK

The Financial Impact of More Components per Cow

Updated: Nov 15, 2023

Cheese now utilizes over 50% of the U.S. milk produced. Cheese and other dairy items need only components, not milk volume. Fluid milk continues to decrease in consumption. Butterfat is at record high prices, and milk protein is at decent prices. Are these prices just temporary? What can a producer do to deliver milk that meets the current needs and provides adequate revenue? This post will quantify the financial impact of changes in component pounds and prices over the last 23 years. It appears that the increase in component prices and the increase in component levels are not a short term events.

The October 15 post showed the monthly component level changes over the last six years including the first 10 months of 2023. Chart I below illustrates the annual butterfat percent from 2000 to 2022. The increase in average butterfat levels is dramatic. Today's cows are producing 10% more butterfat in their milk on the average. That is the average, many are producing at much higher butterfat levels.

The increase in butterfat levels began in 2011 and has not stopped.

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Nov. 7, 2023



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