DairyTalk 224: More Butterfat, Less Profit? Dairy Farming Under Margin Pressure - by Helmut Demmelhuber

This article examines the economic pressure facing the U.S. dairy
industry from 2024 to 2028. Genetic progress has driven butterfat
levels to record highs above 4.23%, but the resulting oversupply
has contributed to falling margins and financial strain. Despite
strong exports, high fixed costs and declining domestic premiums
continue to challenge producers. Future success will depend less
on maximizing fat output and more on operational efficiency, herd
health, and alignment with processor requirements. Farms that
fail to adapt their breeding goals and cost structures risk
gradual erosion of equity. With comments on a "The
Bullvine"-article (January 8th, 2026) by Andrew Hunt:
https://www.thebullvine.com