News from Scenic Central

Protein has begun to outpace butterfat

cjneumann2220
May 5

May 4, 2026

Butterfat has long been the driver of the U.S. dairy industry. The processing sector balanced for the milk component meaning we kept nearly all our butterfat for the domestic market and exported skims solids – largely dairy proteins, permeate, and lactose – to international customers. That scenario has begun to shift.

Last year we experienced a structural shift in the American dairy industry as U.S. dairy farmers continued to produce more butterfat. As a result, the U.S. exported 269 million pounds of butter and anhydrous milkfat. That was up a whopping 171% over the 99 million pounds exported in 2024.

More dairy cows headed to second career: beef

cjneumann2220
Mar 10

By Abbi Prins, Cobank

Hoards Dairyman Intel

Now that March has rolled around, it’s spring-cleaning season and dairy farmers are getting in the spirit as more dairy cows are sent to the beef packer. Dairy cow slaughter has been higher year-over-year for 23 consecutive weeks, with the exception of one lone week in early February. For 2026 alone, 3,900 more cows have been culled each week on average compared to a year ago, resulting in year-to-date slaughter being 35,000 head or 7.5% higher than the year prior. Read More

Record milk components continue to roll

cjneumann2220
Feb 12

February 12, 2026

By Abbi Prins, Cobank

Butterfat and protein production set new records of 4.29% and 3.34%, respectively, in 2025, according to Federal Milk Marketing Order (FMMO) data. Genetic gains propelled these numbers to new highs for four consecutive years. Based on current milk futures prices, some dairy farmers have been pulling back slightly on butterfat production by changing feed rations to produce a little less butterfat. At the same time, it is full steam ahead on protein.

The evidence for this analysis comes from USDA December milk production data along with FMMO statistics. Protein output improved 6.23% in December when compared to the same time 12 months ago. Meanwhile, butterfat grew 5.28% and overall milk production rose 4.4%.