Protein has begun to outpace butterfat

(c) Hoard's Dairyman Intel 2026

May 4, 2026

By Corey Geiger, Cobank

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.

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Protein has begun to outpace butterfat

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 l

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