# Butterfat Prices are Dropping. Is it a Trend or a Blip? - Milk Pay

> Butterfat prices have fallen each quarter over the past year, from $3.59 to $3.02, $2.80 and then $2.68 per pound. The article attributes part of the recent softness to a June increase in the make allowance, which lowers the butterfat price. Retail butter prices, by contrast, continued to rise.

- Date: 2025-07-23 · published 2025-07-23T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/23761-butterfat-prices-are-dropping-is-it-a-trend-or-a-blip-milk-pay
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Lower butterfat values reduce farm-level milk revenue and point to softer dairy commodity prices in the near term.

## Read by commodity

- MILK: bearish ▼

## Sources

- milkpay.com: https://milkpay.com/resource/butterfat-prices-are-dropping-is-it-a-trend-or-a-blip/

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.