A Dairy Herd Management article
Protein powder demand has been the front and center focus for dairy markets lately despite supply pressure as continued high milk production looms over the markets. Over the last week, Dry Whey climbed to 88.50 cents per pound in the spot market Tuesday, crushing the all-time high from February 2022 of 86.75 cents. All while Grade A Nonfat Dry Milk spot price inched its way higher to $2.27 per pound, approaching the all-time high of $2.2950, set just this spring.
While the U.S. has an abundance of raw milk supply, NDFM supply is currently limited due to demand for high-protein products like whey and whey protein diverting milk to Class III. Export demand has also been strong due to the NFDM lows set back in July and August causing many other countries to secure purchases with the U.S. at that time as there are many areas of the world seeing dairy shortages. Milk has also been diverted to Class I for schools, causing a supply chain bottleneck as the market tries to figure out what school demand will be after the government started allowing whole milk back in schools. This left less product available for drying.
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