The value of components determines the milk pay price for most Northeast dairy producers. Component prices have been much discussed in the past few months, with some observers suggesting that we now produce more butterfat than markets can absorb. It’s true that the national average butterfat test of farm milk has grown from 3.6% to 4.3% in the past 15 years due to improvements in feeding and genetics, and further increases are projected. The protein test for milk has grown at about half the rate of butterfat during that time. A key question is whether these different growth rates have created an imbalance in component values with long-lasting effects, implying the need for major changes to feeding and breeding strategies.
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