Dairy farmers benefit
Milk fat popularity positive for America
The popularity of milk fats is increasing worldwide. This will bring long-term benefits for American dairy farmers. This is reported by Dairy Management Inc (DMI) and the National Milk Producers Federation (NMPF).
The value of milk fat in the United States has increased significantly in recent years. This is mainly because consumers have started to think differently about whole milk products. This is according to a new analysis by the NMPF.
Research into milk fats
According to Tom Gallagher, CEO of DMI, this change among consumers is due to the many studies into the value of milk fat. "We have long felt that milk fats have positive effects for consumers. However, that idea was not shared by government agencies and professionals at the time."
Increased demand for milk fat has also boosted US butter prices. DMI expects that in the long term American dairy farmers will earn more from their milk.
Sales of whole milk are growing
Because the value of milk fat has grown strongly, the sale of whole milk in American supermarkets is also increasing. In contrast, sales declined for a long time between 2000 and 2013. "The increasing popularity of milk fat goes far beyond the effects it has on butter," said Peter Vitaliano, VP of economic policy and market research at NMPF. "The declining sales of whole milk were very strong until 2013. Since that year we have seen a turnaround and currently we are even seeing an increased turnover of whole milk products."
The proportion of milk fat used to make butter has increased by almost 19%. The use of milk fat for cheese and yogurt products has also increased. "In almost all major dairy products, an increase in milk fat is visible. After that, I think it's the turn of the 'frozen' products," says Vitaliano.
According to the analysis of the NMPF, US butter prices will not fall below 2 dollars per pound for the time being. This is mainly due to the doubled demand for milk fat.
Meet the demand
In order to meet domestic demand, the US dairy industry has reduced its exports to the world market. "The dairy industry has withdrawn various butter and milk fat products from the global market. We simply need those products to meet the demand of our own consumers," Vitaliano claims.
There is also more demand for products with milk fat in Europe, New Zealand and Australia. "Milk fat has in principle always been a product in surplus. That even led to falling world prices in 2009", Vitaliano knows. “However, the demand for butterfat will always remain a driving force in the dairy industry.”
Kimberly Baker
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