The Long-Term Changes in the Price of Butterfat and Protein
- ZISK
- Oct 7
- 1 min read
The prior post reviewed the recent drop in butter and butterfat values. The high values for butterfat have encouraged significant increases in U.S. production of butter. While production of butterfat has increased significantly, the volume of milk protein has increased only slightly. The values of butterfat and milk protein have also been impacted by the recently implemented USDA changes in the formulas used for calculating the value of butterfat and milk protein.
The data in this post is based mostly on 12-month moving averages to minimize monthly volatility and provide a clearer picture of trends in the value of butterfat and milk protein.
Chart I below compares the prices of butterfat and milk protein over 25 years. Milk protein value was higher than butterfat value for the first 16 years. Milk protein is used to coagulate the protein to capture the butterfat in the cheese. In the past, the shortage of protein in the milk meant that protein had to be acquired and added to the milk to reach the proper blend of butterfat and milk protein for cheese making. That made milk protein valuable and butterfat plentiful. Therefore, butterfat was lower priced than milk protein. The technical effort to increase component levels was primarily aimed at increasing the production level of milk protein.
John Geuss
October 1, 2025
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