US farmers get over 50% of butter’s retail price - USDA
- ZISK
- Jun 30
- 1 min read
According to a USDA Economic Research Service (ERS) chart of note, dairy farmers in the US received just over half of consumers’ retail spending on butter in 2024, but considerably less when it comes to ice cream.
While butter was estimated to be 80.3% milk fat, offering a substantial return to dairy producers, farmers still captured only 57 % of the final retail price after processing and marketing costs. In contrast, ice cream—which blends milk, cream, sugar, egg yolks, and often additional flavourings like fruit or chocolate—yielded just 19 % of its retail price back to the farm level.
The ERS emphasizes that the farm share reflects the portion of consumer spending that goes directly to farmers for the milk used in a product. Remaining costs stem from processing, packaging, distribution, and retail overhead.
June 2025
By: Global Ag Media
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