Surge in protein demand, especially from GLP-1 drug users and fitness trends, has caused U.S. whey protein inventories to fall by half since 2023. Prices have reached $14 per pound. Dairy Farmers of America is among large players expected to invest in new processing capacity. Analyst predicts price moderation over a few years but no crash.
Asia
In Asia, prices for AMF were firm throughout 2025. In the first half, prices slightly increased due to the increased demand from dairy processors and food manufacturers. In Australia, moderate support for prices of AMF was noted due to favorable seasonal milk production and export opportunities. In the second half of the year, prices for AMF increased due to the need for holiday demand. Favorable weather conditions resulted in farm margins, keeping the prices firm.
Europe
European AMF prices had mixed movements during 2025. In the first half, prices were relatively stable, with an increase in milk production, albeit at a gradual pace, and processors paying relatively stable prices to maintain their supplies. In the second half, however, prices were affected by an increase in global milk supplies, along with declining commodity values, especially for butter and cheese. Competition from imported products, along with declining wholesale prices for dairy commodities, impacted AMF prices. Organic AMF prices performed slightly better than conventional ones due to their relatively high demand and input costs. Overall, prices declined during the second half.
North America
AMF price levels in North America exhibited contrasting trends in the US and Canada. In the US, production has been steadily increasing over the course of the year, contributing to global supply and thereby exerting a downward pressure on AMF prices in the latter half of 2025. In Canada, AMF price levels have been sustained through changes to farmgate pricing levels, reflecting increases in production costs and the need to sustain farmer margins.
Analyst Insight
According to Procurement Resource, Anhydrous Milk Fat (AMF) prices are expected to remain relatively stable in the near term, influenced by global milk production and seasonality.
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The market for anhydrous milk fat saw considerable volatility in the second half of 2024 due to complex supply and demand dynamics. The price of milk fat was directly impacted by issues with dairy production, such as declining herd sizes and geographical variations in milk collections. The market was characterized by a tighter supply, as international markets performed differently, and U.S. milk production declined.
Significant fluctuations in spot milk prices led to uncertainty in derivative products such as anhydrous milk fat. Reduced demand for food service was somewhat countered by higher grocery spending, which made market pricing even more complex. Improved margins prompted dairy farmers to closely control production, while new technology, such as AI-powered herd monitoring, started to affect operational efficiency.
With major players like China retaining strong demand for milk-based goods and New Zealand exhibiting moderate production growth, global market dynamics further complicated the pricing picture. A complex pricing environment for anhydrous milk fat was produced by the interaction of production costs, feed prices, and demands from global markets.
Anhydrous Milk Fat is composed of pure milk fat. A product must contain at least 99.8 % milk fat and be made from fresh cream or butter in order to be called AMF, that is, Anhydrous Milk Fat. A fatty product, AMF is obtained exclusively from milk and/or milk products by means of processes that allow total removal of water as well as non-fat solids. No additive should be added in its production, that is, for neutralisation of free fatty acids and other processes.
Recombined milk or dairy products and fractionated milkfats, Blends and spreads, Confectionery and baked goods, Culinary preparations, Processed cheese and cheese milk extension, Ready-to-drink beverages, Ice creams and chocolates
Fonterra Co-operative Group, Dairy Farmers of America Inc, Hilmar Cheese Company, Inc, Lactalis Group, FrieslandCampina, Westland Milk Products, Synlait Ltd.
CurrencyUS$ (Data can also be provided in local currency)
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In order to produce Anhydrous Milk Fat, melted butter is passed through a centrifuge to get butter oil. This step is followed by the vacuum drying process to finally obtain Anhydrous Milk Fat.
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