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The National Milk Producers Federation and DMI say rising demand for milkfat has lifted the value of US milk components, and butter prices have strengthened. DMI estimates the share of the USDA-reported farm price coming from milk sales rose from 38% before 2015 to over 66%.
DMI credits checkoff-funded research for shifting policy and health guidance toward milkfat.
Stronger demand for butterfat supports US Class IV and component-based milk prices, which raises the cost of dairy-based feed ingredients and supports dairy herd margins. The durability of this demand shift matters more for prices than the promotional framing.
dairyreporter.comMary Ellen ShoupJul 20, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
