The long-term demand trends for dairy products indicate butter, cheese and other full-fat dairy foods will continue to grow in sales and volume for the foreseeable future. U.S. consumers have shifted away from margarine and reduced-fat dairy foods over the last decade as nutritional science surrounding saturated fats has evolved. As a result, butterfat levels in the national milk supply have risen sharply in response to changing demand patterns and dairy market dynamics. According to a new report from CoBank’s Knowledge Exchange, the butterfat boom will continue as the entire dairy supply chain is capturing additional value from milk with higher fat and protein levels.
CoBank’s Corey Geiger says, “Despite the significant growth in domestic butterfat production over the last decade, there is still tremendous upside potential, largely because the U.S. remains a milk-fat-deficit nation.” Geiger says the overall market picture for butterfat is quite clear, with tremendous growth potential both domestically and ultimately via the export market.
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