Whey Powder Consumption Slumps

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Whey Powder Consumption Slumps🥛

Daily Dairy Report | June 26, 2026

U.S. dairy processors are directing as much whey as possible to high-value products, including whey protein concentrates (WPCs) and whey protein isolates (WPIs). In 2025, manufacturers directed record-setting volumes of whey to high-protein WPCs and WPIs, leaving less whey for dryers. Commodity whey powder production dropped to 844.9 million pounds in 2025, the lowest annual total since 1982. But this year, due to record-shattering milk and cheese production, plenty of whey is available to supply makers of WPCs and WPIs and to fuel a rebound in whey powder output. January through April production of whey powder for human consumption was 11% higher than it was in the first four months of 2024 and marked the highest output for the period since 2021.

While consumers continue to be hungry for dairy proteins, food processors clearly prefer WPCs and WPIs over whey powder. Domestic WPC consumption hit an all-time high last year, and January through April demand was up 11% from the same period in 2025, matching growth in WPC production pound for pound. In contrast, domestic demand for whey powder slumped to just over 20 million pounds per month in February, March, and April, marking the three lowest monthly consumption totals on record, aside from a curiously low showing in March 2014. Year-to-date consumption through April was the slowest in USDA data dating back to 1995, down 34% from January through April 2025.

Similar to cheese exports, whey exports have helped bridge the gap between robust output and tepid domestic demand. U.S. whey powder exports reached 26.5 million pounds in April, up 72% year over year and the second-highest monthly volume ever. Through April, annual U.S. whey powder exports were off to their strongest start on record, up 44% from the first four months of 2025.

Steady U.S. whey values and a steep increase in European whey prices have made the United States the go-to source for whey powder. Last week, German whey sold for €1,932/ metric ton, or 91¢ per pound, sharply higher than U.S. whey powder at 68¢. Competitive prices have boosted U.S. whey powder shipments to key destinations, including China, Canada, and Southeast Asia. Over the next few months, the United States will likely continue to capture market share from European exporters. April shipments reflected deals made several months before the sudden rise in European whey values, which accelerated dramatically in March.

That’s welcome news for dairy producers and whey processors because today’s prices depend on booming exports to prevent stocks from piling up. Every penny increase in the whey price boosts Class III revenues by 6¢ per hundredweight. So far this year, whey prices have lifted Class III values by 79¢ compared to the first six months of 2025. Dairy producers are already disappointed to see June through August Class III hovering near $16/cwt. But that’s about the best they can ask for with cheese prices at four-month lows. Class III prices would be much lower in the absence of historically high whey powder exports.

NMPF NEWS ALERT

• Senate Republicans on Tuesday unveiled the text of the long-awaited Senate version of what’s been dubbed “Farm Bill 2.0". The proposal looks a lot like the House version passed in April that would provide additional support for farmers while boosting investment in federal farm loan programs.

• U.S. House Agriculture Committee Chairman Glenn “GT” Thompson, R-PA, is expected to release tomorrow the Securing Agriculture’s Workforce Act, a bipartisan bill aimed at reforming ag labor and the H-2A visa program by controlling costs, expanding access and reducing red tape.

• The U.S.–Mexico–Canada Agreement is under formal reassessment as of July 1 for the first time since the pact was signed six years ago under President Trump’s first term.

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