The protein boom, driven by exploding population and income growth, heightened awareness of health benefits, and expanding use of GLP-1 weight loss drugs, continues to benefit the U.S. dairy industry. Whey products are an essential part of meeting growing demand for protein, and that is helping prop up farm milk prices, according to Betty Berning, analyst with the Daily Dairy Report.
“Dry whey prices have stayed above 60 cents per pound, a historically high price, since September 2025. And because a nickel increase in dry whey prices results in a 30-cent per hundredweight increase in the Class III price, higher whey prices have been providing support to the Class III complex,” Berning said.
Export demand for U.S. dry whey, which contains between 11-15 percent protein, has been strong in 2026. May exports of just over 66.5 million pounds were the largest since June 2010 and the third highest on record.
With global protein needs expected to expand 60% by 2050, demand for high-protein dairy products will also increase. While some of that demand stems from the explosion of GLP-1 weight loss medications, an aging population and consumer awareness that protein is essential to muscle and overall health is also driving demand. Recent studies show that 12 percent of Americans are taking GLP-1 medications, while 70 percent are actively trying to increase their protein intake.
As a complete protein, whey products, especially value-added products such as whey protein concentrate with at least 80 percent protein (WPC-80) and whey protein isolate (WPI), are found in many health and high-protein products. WPC-80 and WPI prices are also providing support to dry whey markets, Berning said.
“Prices for WPC-80 continue to set new records,” she noted. “And WPI prices, while having pulled back from their all-time high reached in June, remain elevated. Because of the high premium these items command, processors have prioritized producing them, thereby tightening the whey stream for other items, particularly for lower-protein whey WPC-34.”
However, high prices in the whey complex could be taking the froth off demand. In May’s Dairy Productsreport, WPI stocks were larger than they were in April 2026 and May 2025, even though production was lower. That means that although processors made less product in May, WPI still began to pile up in storage, she said. WPC-80 production in May increased from April’s volume, but stocks grew by a larger amount, suggesting a similar situation could be shaping up for that product.
“Most telling was that WPC-80 exports year to date through May were down 21% compared to the same period in 2025, suggesting that international buyers have also grown weary of the high prices,” Berning said. “Although prices are beginning to cool in the high-protein space, they remain well above historical averages, and lofty whey prices are likely to persist. Growing use of GLP-1 drugs and an increase in demand for high-protein products bodes well for dry whey prices to persist at current high levels through at least the end of 2026, and that will continue to support Class III prices.”
