Farm Journal reports that U.S. dairy farmers are grappling with a 12% rise in feed costs in April 2025, driven by drought-related grain shortages. This squeezes milk production, with output projected to drop 1.5%, inflating prices for dairy ingredients like whey and milk powders. Manufacturers in the Americas face higher costs for yogurt and cheese production, prompting some to explore plant-based alternatives. Industry analysts recommend securing long-term contracts to manage price volatility in this tight market.

We’re monitoring dairy supply trends at BTG Ingredients to ensure consistent ingredient sourcing. Count on us to support your 2025 dairy needs.