Analysis: Looking At The Extra Components of Dairy

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Milk producers used to get paid on just the volume of milk they produced. However, those days have been long gone.

“About four or five years ago, [it used to be that] two-thirds of the milk check was protein value,” said Stephenson. “Butterfat picked up the other third. That [has now] flipped. We’ve now been about two-thirds value on butterfat and a third on protein.”

What does this pattern mean for dairies in the future? 

AgDay’s Clinton Griffiths talks with Mark Stephenson, the University of Wisconsin-Madison economist and dairy policy expert.

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