U.S. dairy industry accelerates push to boost milk protein levels

DENVER, Aug. 27, 2026 (GLOBE NEWSWIRE) -- The U.S. dairy industry is accelerating efforts to increase protein levels in the nation’s milk supply to align with global demand trends and keep pace with key export market competitors. While butterfat levels in U.S. milk have risen sharply over the last decade, gains in protein content have been comparatively modest. However, that dynamic is beginning to change as milk component pricing formulas and other incentives have shifted the economic premium from butterfat to protein.

A new report from CoBank’s Knowledge Exchange shows U.S. milk protein production began outpacing butterfat last August, when protein values surpassed butterfat for the first time in recent years. The report notes that a more balanced composition of butterfat and protein will help keep the U.S. competitive with the world’s other leading dairy exporters in addition to supporting domestic cheesemakers.

“In the U.S., butterfat gains have doubled protein growth over the past decade, driven largely by demand to fill underserved domestic butterfat markets,” said Corey Geiger, lead dairy economist with CoBank. “The dairy industry has successfully met that challenge, and U.S. butter exports are now historically high. At the same time, higher butterfat yields in milk have led to some significant challenges for cheddar and American-style cheesemakers, who rely on a more balanced ratio of butterfat and protein for optimal cheese quality and production yields.”  

Despite recent progress in growing protein content in milk and restoring the ratio preferred by cheesemakers, the U.S. still trails its key export market competitors in overall milk protein levels. The European Union, New Zealand and the U.S. account for two-thirds of global dairy exports, and both the EU and New Zealand have increased protein at a faster pace than butterfat — more closely matching global trends in dairy product and ingredient demand.

Although cheesemaking formulas vary by variety, a protein-to-fat ratio above 0.80 is generally preferred for cheese production. While some cheese types always require added milk protein solids, those additions have become standard for nearly all U.S. cheesemakers as the protein-to-fat ratio tumbled from 0.83 to 0.77 over the past decade.

In contrast, New Zealand and the EU have maintained far more stable ratios. While New Zealand’s ratio has varied slightly, it began and ended the period from 2015 to 2025 at 0.77, and the EU protein-to-fat ratio has held steady between 0.83 and 0.84 over the same period.

For U.S. dairy farmers and processors, butterfat and protein are the most economically important milk components. The solids underpin production of the most widely traded dairy products and ingredients — including cheese, butter, whey and milk powders — and drive farm income, processor yields, domestic sales and global trade.

Protein production is rising, but still catching up

Global demand for protein continues to grow, but increasing protein levels in U.S. milk has proven more challenging than increasing butterfat. Protein gains rely almost entirely on animal genetics, making progress slower. Even so, U.S. dairy farmers have made meaningful strides.

While the U.S. still has a lower protein content than New Zealand and the EU, its growth trajectory has been faster. From 2015 to 2025, American dairy farmers improved protein production by 7.4%, with two-thirds of those gains taking place in the last five years. By comparison, New Zealand and the EU saw slower growth — 2.1% in the first half of the decade and 1.7% and 1.5%, respectively, in the second half. 

Abbi Groves, agricultural commodities economist with CoBank, said the renewed emphasis on protein content through pricing formulas and dairy breed association initiatives supports continued momentum, but progress will take time.

“Fully restoring the protein-to-fat ratio of 0.83 from a decade ago will require years of sustained higher protein growth. And until protein production gains catch up to butterfat, the U.S. will need to find more domestic and international outlets for its growing butterfat supply.”

Read the report, The U.S. butterfat boom has become a double-edged sword.

About CoBank

CoBank is a cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving almost 80,000 farmers, ranchers and other rural borrowers in 23 states around the country. CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

Corporate Communications
CoBank
800-542-8072
[email protected]

Source: CoBank

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• IPX1031 Named Best Overall 1031 Exchange Company by Fit Small Business for Fifth Consecutive Year
• Scottsdale TMS Therapy Built Solely Around TMS and Spravato Services
• Once Human Now Available on PS5 and XBOX