Analysis: Looking At The Extra Components of Dairy

Dairy Components 092419

Milk producers used to get paid on just the volume of milk they produced. However, those days have been long gone.

“About four or five years ago, [it used to be that] two-thirds of the milk check was protein value,” said Stephenson. “Butterfat picked up the other third. That [has now] flipped. We’ve now been about two-thirds value on butterfat and a third on protein.”

What does this pattern mean for dairies in the future? 

AgDay's Clinton Griffiths talks with Mark Stephenson, the University of Wisconsin-Madison economist and dairy policy expert.