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Dairy processors favoring butter and whey

A dairy economist says processors have been channeling reduced fluid milk supplies into more profitable categories.

Highground Dairy’s Betty Berning tells Brownfield butter production is a prime example with prices not impacted by reports that February stocks topped a five-year high.

“Buyers are concerned about paying $3 per pound this fall, and so they’re buying at whatever level they can get better at right now,” she says. “Since the start of April, we’re trading at the highest levels ever for the month.”

She says the same is true for whey production.

“Manufacturers have been favoring putting the whey stream into these high protein products that carry a heftier premium than something like a WPC 34 or a sweet dry weight powder,” she shares.

Berning says there is some potential for growth in milk production in the second half of the year, but margins are tight.

AUDIO: Betty Berning, Highground Dairy