Prior posts have focused on producer revenue from butterfat and milk protein as they are the two largest sources of revenue for producers. As shown in Chart I below, revenue from Other Solids is a small contributor compared to butterfat and milk protein.
Sales of butter and cheese have been slow and as a result, butterfat and protein component prices are low. The price of Other Solids is based on the price of dry whey. Dry whey has been in strong demand and prices are positive as shown in Chart II.
Below are the pricing formulas for Other Solids. Prior to June 2025 the make allowance was $0.1991 pound. It is now $0.2668.
Prior to June 2025 – Other Solids Price = (Dry Whey Price-0.1991) x 1.03
Beginning June 2025 – Other Solids Price = (Dry Whey Price – 0.2668) × 1.03
Butterfat and milk protein component levels are increasing steadily. How are Other Solids doing? At a glance, Chart IV appears to be a healthy increase like the other components. In fact, there is almost no change. The component percent averages have increased from 5.77% to 5.78%, a negligible change. On a per cow basis there would be a gain as milk per cow is increasing.
SUMMARY
Table I below compares the pricing, percent and revenue for butterfat, protein, and Other Solids. Although the price per pound for Other Solids is much lower, the percent in milk is higher. Over time, the percent for butterfat and protein in milk has increased, but the Other Solids percent has remained the same. Therefore, the revenue for Other Solids makes up less of the total revenue.
Butterfat and milk protein revenue is down, and with the formula change for Other Solids, the Other Solids revenue is not going to compensate. For all three components combined, the February 2026 revenue is the second lowest in the 62 months in Chart V below.
Editor’s Note: John Geuss is a dairy consultant based in Florida. This information is originally published on Milk Price blog, https://milkpay.com/blogspot/ , sponsored by Adisseo and is published here with permission. He may be contacted at johngeuss@gmail.com.
Originally published at https://milkpay.com/blogspot/
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