Will the Lower Prices for Components Also Reduce Volatility
The post on September 25, 2026, finished with a comment that the increased volumes of cheese and butterfat being produced allows a more consistent and adequate domestic supply of components. The excess is being exported. That should reduce volatility in domestic component prices. This post will dig into the current increases and exports to see […]
Lower Retail Prices typically Bring an Increase in Sales. How are Dairy Products Doing?
Production costs are lower with new processing facilities and the new facilities are tied closely to the farms for milk. With lower costs, retail prices should fall and sales should increase. Is this happening? This post will cover the retail pricing of cheese, butter, and fluid milk. In 2022 inflation accelerated to extreme highs. The […]
U.S. Growth of Milk Production Where is it Coming From?
Data in this post is based on 12-month moving averages to eliminate monthly fluctuations. The data covers the period from 2022 to August 2026. Table I lists the five largest dairy producing states. Overall, the U.S. is increasing milk production by 3% consistently in 2026 (Chart I and II). The five largest milk producing states […]
The Downside and Upside of Increasing Exports
The prior posts covered how the U.S. is becoming a dairy exporter. The biggest change is in exports of cheese and butter. The impact on farmer protein and butterfat prices is significant. To become a dairy exporter, prices must be competitive with other international dairy exporters. To build these exports, lower prices than the competition […]
The U.S. is becoming a Major Dairy Exporter
The U.S. is quickly becoming a major dairy exporter. Cheese exports lead the exporting increases. Cheese uses nearly two thirds of U.S. milk, and other dairy categories are also increasing exports. Table I below shows the current levels of production, exports and imports. Clearly. cheese is the leader. The growth and trends of these […]
Producer Prices for Cheese are Lower, But Retail Prices Have Not Changed.
The prior post provided detail on cheese prices, domestic consumption and growing cheese exports. This post will go deeper. The cheese prices covered are for Cheddar cheese. Cheddar cheese prices are used to calculate protein prices for producers. Most cheese exports are also Cheddar cheese. Domestic consumption of cheese is growing at 1.3% annually. Exports […]
Why is Dairy Changing so Fast?
The latter part of this post will cover the huge and fast changes that are occurring in the dairy industry. Its really all about cheese production and exports. The European countries have a very strong lead in cheese exports. In 2025 the major European countries exported over $33 billion dollars of cheese. The U.S. exported […]
Life is Always Changing and so is Dairy Industry.
As mentioned in prior posts, capitalism is harsh, but it is also effective for future improvement and success. The dairy industry is changing rapidity, and the changes can be harsh. The U.S. dairy industry is in the process of major changes, and the impact of traditional processes cannot survive. This post will focus on dairy […]
Long -Term View of Component Prices
Many prior posts from this Blog Spot and other sources have expressed the problem for dairy farmers with the low price of components and the high price of feed, employees, and other expenses. This post will cover a long review of dairy component values. Long-Term in this post means the trends cover 27 years. Chart […]
Fluid Milk – Is it Growing or Shrinking?
Many prior posts covered the issue of “Too Many Cows and Too Much Milk.” The biggest problem is that domestic consumption of cheese is not growing, but cheese production is growing. This post will cover changes in fluid milk consumption. After many years of declining consumption, fluid milk consumption has now leveled out (Chart I). […]
