A CoBank report
U.S. milk components are growing, but they are growing out of balance. Since we last examined the global components landscape last year, U.S. butterfat has surged faster than protein, creating a mismatch between what the milk supply is producing and what cheese makers and other dairy processors increasingly need. However, while major export competitors New Zealand and the EU have grown their butterfat and protein percentages, they have done so with consistent ratios.
For dairy farmers and processors alike, the two most economically important milk components are butterfat and protein. These milk solids are foundational to the most widely traded dairy products and ingredients such as cheese, butter, whey and milk powders.
The growth in milk component production is an essential driver for dairy farmers’ milk checks, dairy processors’ product yields and output, domestic sales, and ultimately, global trade. This report examines what’s changed on the international scene since our 2025 report, While U.S. leads milk component growth, butterfat may be growing too fast.
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