DENVER — Dairy processors find themselves poised for continued growth, thanks to genetic improvements that have transformed milk composition.

A new report from CoBank said butterfat and protein levels within the US milk supply are growing at “a record pace,” setting up gains for milk components that help produce cheese, butter and other popular dairy products.

CoBank’s lead dairy economist, Corey Geiger, explained that dairy farmers leveraged genetics programs to select animals for traits associated with milk component levels, and said there is “untapped potential” for how high butterfat and protein percentages can go.

“And there’s a clear financial incentive for producers given that multiple component pricing programs place nearly 90% of the milk check value on butterfat and protein,” Geiger said.

The report highlighted that butterfat levels in US milk achieved record highs four years in a row, with an average of 4.23% in 2024, per data provided by the US Department of Agriculture.

Protein levels, meanwhile, have gone up nine years in a row, reaching 3.29% in 2024.

Noted in the report, the growing levels of key components has outpaced overall milk production – between 2011 and 2024 milk production increased by 15.9%, compared to 23.6% growth for protein and 30.2% improvement for butterfat.

Geiger explained that genomic testing and comparing an individual animal’s DNA samples to the overall population help producers make breeding decisions.

“Selecting animals for highly heritable traits and having a market incentive to do so has formed a strong foundation for dairy producers to develop their herds to produce more butterfat and protein,” Geiger said. “Genetics should continue to gain momentum in the coming years, and growing volumes of milk components will further supply the necessary ingredients for dairy processors.” 

The full report is posted online at the CoBank website.