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.
Anhydrous Milk Fat Price Trend Analysis 2026: Price Drivers, Supply Demand Analysis, Market Insights, Historical Prices & Latest News
Written BySiddharth David
Anhydrous Milk Fat Price Trend 2025
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.
Need latest Anhydrous Milk Fat price?
Get real-time price assessments, periodic trends, forecasts and price driver insights across key global markets.
Unlock Price Insights NowLatest Developments
Our Clients
Procurement Resource Database
Turn price intelligence into action with the Procurement Resource Database. Log in or subscribe to unlock live price trends, historical charts, supplier databases, cost curves, and analyst-backed insights across chemicals, agriculture, energy, packaging, and more. Use these tools to benchmark your contracts, plan budgets with confidence, and stay ahead of market moves on every product you buy.
Anhydrous Milk Fat Dashboard Inclusions
0
+Products
0
+Regions
0
+Subscriptions
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.
About Anhydrous Milk Fat
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.
Anhydrous Milk Fat Product Detail
Industrial Uses
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
Supplier Database
Fonterra Co-operative Group, Dairy Farmers of America Inc, Hilmar Cheese Company, Inc, Lactalis Group, FrieslandCampina, Westland Milk Products, Synlait Ltd.
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Anhydrous Milk Fat Production Process
- Production of Anhydrous Milk Fat via Centrifugation.
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.
About the Author
Siddharth David
Manager - Market Research
Delivering market research and procurement intelligence at Procurement Resource with a focus on economic forecasting, commodity analysis, and client advisory to help sourcing teams make data-backed purchasing decisions.
Our Price Analysis Methodology
Schedule a demo
Experience how Procurement Resource transforms raw material price data into clear, decision ready intelligence. Optimise your performance with reliable, expert market data and analysis. Schedule your demo today to experience a live walk-through where our experts will showcase interactive price charts, forecasted prices, and insights driving the prices for your key commodities, tailored to your workflows. Contact us now!
Our Team will be happy to assist you
We are just a text away
Still Need Help?
Other Related Reports
Milk Chocolate Production from Conching and Tempering
This report provides an extensive cost evaluation of Milk Chocolate production via conching and tempering processes.
Unlock full access to Procurement Resource's price databases, interactive charts, and short-term forecasts for thousands of commodities. Elevate your sourcing decisions by comparing prices across regions, downloading historical data, and layering in analyst-backed insights, all with our flexible plans that scale as your portfolio grows.
Still have any Questions
Contact Us
Price Trend Dashboard - What's Included
Price trends across a diverse portfolio of categories and products, spanning board to niche chemicals
Coverage extendable to grade-specific chemicals based on procurement requirements
Regular price tracking supported by robust historical datasets
News, policy updates, and key market drivers impacting price movements
Short-term and long-term price outlooks and forecasts
Supply-demand dynamics and capacity-driven market analysis
Related News
View All.webp&w=1080&q=75)
Why Procurement Database
Commodity Market Intelligence
Track prices, market movements, supply-demand dynamics, and industry developments across hundreds of commodities through a centralized intelligence platform built for informed procurement decisions.
Price Forecasts & Market Outlooks
Understand market fluctuations using analyst-backed forecasts, historical pricing patterns, and evolving industry trends to strengthen sourcing strategies and budget planning.
Cost & Procurement Optimization
Leverage cost models, pricing benchmarks, and procurement insights to evaluate purchasing opportunities, improve negotiations, and enhance operational efficiency.
Global & Regional Market Insights
Access region-specific price trends, trade activities, capacity changes, and supply chain developments influencing commodity markets worldwide.
1/4