Recently, protein has become a hot topic across the U.S. with consumers reaching for high protein drinks, powders, snacks, coffee and more recently, waters enriched with whey or casein. The domestic demand is slowing growing as these items are becoming staples in everyday life. If you want to shred pounds or gain muscle, mainstream media is preaching to increase protein intake. These products are the fastest and easiest way to grab and go with a high protein, premade item.
For the dairy farmer, this has started a subtle change in the pricing of milk, specifically those producers tied to Class IV or component pricing. Here recently, we have seen Class III futures slide lower while Dry Whey and Nonfat Dry Milk remain relatively strong. In the Global Dairy Trade auctions, milk powder demand has strengthened, supported by the demand from Southeast Asia and the Middle East, as well as the weakening dollar helping boost U.S. exports.
While overall dairy exports are still recovering from the impact of trade negotiations, powder products have been a bright spot, especially whey, which has been seeing a growing demand in the food and beverage industry, not only stateside but globally as well. Class III futures have slipped recently but dry whey has helped soften the blow for component pricing. If you are marketing milk through a plant focused on powders or exports, this slow and steady growth will help despite weakening cheese prices.
Domestically, consumer demand for high-protein drinks has led to a noticeable uptick in use of dairy derived proteins. Scientists have been focusing on formulations of different ways to source whey protein concentrate (WPC) and whey protein isolate (WPI) in both the refrigerated and shelf stable formats. Health-conscious consumers appeal to the natural aspect of dairy sourced proteins and the dairy industry has capitalized on the surging demand.
Because this is a shift in how consumers are meal planning for their weekly grocery shopping list, we believe it is a trend here to stay and continue to grow as they become part of their normal routines. This means watching export trends closely for long-term shifts in demand both abroad and domestically health driven sectors. Cheese and butter may have been in the driver’s seat for the first half of the year, but dry products may offer the most marketing opportunities in the last half of 2025 or at least some price resilience until school demand and holiday processing begins.
Sarah Jungman is a commodity broker with AgMarket.Net and AgDairy, the dairy division of John Stewart & Associates Inc. (JSA). JSA is a full-service commodity brokerage firm based out of St. Joseph, MO. Sarah’s office is located in Winterset, Iowa and she may be reached at 515-272-5799 or through the website www.agmarket.net.
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