High-component US herds capture higher milk premiums

US milk production has increased more slowly than its component output over the past 15 years. Between 2010 and 2025, total liquid milk volume rose by 18.4%, while delivered protein increased by 27.7% and butterfat production grew by 34.6%.

National composition also changed during the period. Average butterfat concentration gained 0.61 percentage points, and protein content increased by 0.24 percentage points. The source attributes these changes to genomic sire selection, crossbreeding and more precise amino-acid ration formulation.

Data from regional marketing orders show differing levels of consistency among herds. The Mideast order had the narrowest butterfat variation: average results were 4.29%, with herds in the top decile at 4.35% and those in the bottom decile at 4.24%. Protein levels there ranged from 3.26% to 3.32%.

The Southwest and Pacific Northwest orders recorded the largest internal differences in component performance. Participating herds in the Pacific Northwest posted the highest national protein benchmark in the data, at 3.40%.

Processors have adjusted their intake requirements as consumption has shifted towards hard cheese, cultured yoghurt, butter and separated whey proteins. Cheese production uses about half of US milk supplies and generally performs most efficiently with a protein-to-fat ratio close to 0.80.

Milk containing substantially more fat than protein can require processors to rebalance the supply. The source identifies cream removal and the addition of condensed milk proteins as examples of the resulting standardisation measures. These processing costs are increasingly reflected in base hauling deductions and in premiums offered by local plants, linking herd component performance with the value assigned to delivered milk.