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.