CoBank Says U.S. Dairy Industry Is Raising Milk Protein
The U.S. dairy industry is accelerating efforts to increase protein in the national milk supply, according to a report from CoBank’s Knowledge Exchange. The report links the renewed emphasis to global demand for dairy products and ingredients, as well as changes in milk-component pricing formulas that have shifted economic incentives towards protein.
Butterfat levels in U.S. milk have risen sharply over the past decade, while protein gains have been more limited. CoBank said protein production began growing faster than butterfat last August, when protein values surpassed butterfat for the first time in recent years. A more balanced composition could support domestic cheesemakers and the position of the U.S. among major dairy exporters, the report said.
“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, CoBank’s lead dairy economist. He said the industry had met that demand and that U.S. butter exports were at historically high levels. Higher butterfat yields had also created challenges for cheddar and American-style cheese producers, which depend on a more balanced ratio of butterfat to protein for cheese quality and production yields, he said.
For cheesemaking, a protein-to-fat ratio above 0.80 is generally preferred, although requirements differ by cheese variety. The U.S. ratio fell from 0.83 to 0.77 during the past decade, and adding milk-protein solids has become standard for nearly all American cheesemakers. New Zealand’s ratio started and ended the 2015-25 period at 0.77, while the European Union’s remained between 0.83 and 0.84.
The EU, New Zealand and the U.S. together account for about two-thirds of global dairy exports. CoBank said the EU and New Zealand had increased protein at a faster rate than butterfat, more closely matching demand for dairy products and ingredients. Butterfat and protein are the economically most important milk components for farmers and processors, underpinning cheese, butter, whey and milk-powder production and affecting farm income, processing yields, domestic sales and trade.
Increasing protein has been more difficult than increasing butterfat because protein gains rely almost entirely on animal genetics. U.S. dairy farmers nevertheless increased protein production by 7.4% between 2015 and 2025, with two-thirds of the improvement occurring in the final five years. New Zealand’s growth was 2.1% in the first half of the period and 1.7% in the second half; the EU recorded increases of 2.1% and 1.5%, respectively.
“Fully restoring the protein-to-fat ratio of 0.83 from a decade ago will require years of sustained higher protein growth,” said Abbi Groves, an agricultural commodities economist with CoBank. She said pricing formulas and initiatives from dairy breed associations supported continued progress, while the U.S. would continue to need domestic and international outlets for its expanding butterfat supply until protein gains caught up.
