Archive for grilling season dairy profits

Grilling Season Gold: 7 Ways to Fatten Your Summer Milk Checks

Grilling season spikes cheese demand! Learn seven ways dairy farmers can cash in this summer.

grilling season dairy profits, summer cheese demand, dairy component optimization, dairy export strategies, seasonal milk pricing

Discuss something that could seriously boost your dairy operation’s profits this summer. You know how everyone fires up their grills when the weather warms up? Well, that seasonal shift creates a golden opportunity for us in the dairy business—if we know how to capitalize on it.

The Backyard BBQ Boom: Why Cheese Flies Off Shelves in Summer

I was looking at the numbers the other day, and it’s pretty remarkable—cheese consumption jumps 10-15% during peak grilling months! Think about it: every backyard cookout needs cheese for those burgers, right?

The USDA sees this trend continuing long-term, with cheddar prices projected to climb from $1.88 per pound in 2023 to $2.14 by 2034. That’s not just inflation—increased demand is working in our favor.

Check out this seasonal pattern I’ve been tracking:

Table 1: Seasonal Cheese Demand Index (2015-2024 Average)

MonthCheese Demand IndexPeak Grilling Season Impact
Jan95-15%
Apr101Baseline
Jun110+10%
Aug108+8%
Nov106-4%

Source: USDA ERS historical dairy data

Did you see that June spike? That’s our sweet spot. The processed cheese market—those barrel prices that determine what goes on fast food burgers and packaged slices—typically strengthens right before grilling season hits as manufacturers build inventory.

🔥 Quick Win: If you can redirect 15-20% of your spring milk to cheddar production, you’ll be positioned perfectly to capture those summer premiums.

I chatted with Tom and Sarah Jensen from Maple Ridge Dairy in Wisconsin last week. They told me they boosted their June milk check by 12% last year with a component-focused approach. “We shifted 15% of our milk production to a local cheese processor starting in April,” Tom explained over coffee. “We doubled down on maximizing butterfat through our feeding program. The premium we received during grilling season more than covered our additional feed costs.”

Their strategy was pretty straightforward:

  • They tweaked their TMR to boost butterfat during the spring months
  • They negotiated a seasonal contract with their cheese processor (smart!)
  • They got ahead of the summer heat with cooling strategies to minimize butterfat depression

What’s Happening Right Now: 7 Signs the Market’s Ready to Move

Have you been watching the cheese markets lately? Talk about a roller coaster! Early April saw a sharp price rebound after a bit of a crash. The buyers jumped back in when inventory got tight—precisely what we want to see heading into grilling season.

Look at these numbers from just a couple of days ago:

Table 2: Spring 2025 Dairy Commodity Prices

ProductPrice (04/07/2025)Weekly ΔYTD Δ
Cheddar Blocks$1.6575/lb+2.25¢+18%
Cheddar Barrels$1.6600/lb+3.50¢+22%
Butter$2.3400/lb-5%
NDM$1.1725/lb+1.00¢+9%

Source: CME Daily Dairy Market Report, April 7, 2025

I find it fascinating that barrels are trading above blocks right now—that’s pretty rare! It’s a crystal-clear signal that processed cheese supplies are tight, which is exactly what we’d expect to see with food service and retail gearing up for summer burger season.

A friend at the USDA told me last month, “Export markets are carrying the cheese sector right now. The producers who lock in international contracts early will dominate summer margins.” When you look at the 22% surge in cheese export value year-to-date, with Mexico and Canada driving 51% of that growth, you can see why he’s so bullish.

Components Are King: Breeding and Feeding to Cash In

I know I probably sound like a broken record, but I can’t stress this enough—if you want to maximize your milk check this summer, you’ve got to focus on components. The natural decline in butterfat during hot weather is exactly why focusing on it now can give you such an edge.

Here’s my summer component checklist (I keep this taped to my office wall):

5-Step Plan for Summer Component Success

  1. April-May: Adjust feeding times – Feed during cooler parts of the day when cows are more likely to eat well.
  2. Ongoing: Balance those rations – Keep a close eye on your forage-to-concentrate ratio and fiber levels.
  3. May-August: Strategic supplements – This is when I add rumen-protected fats, niacin, and quality yeast products.
  4. June-September: Beat the heat – Get those fans and sprinklers working to keep cows comfortable and eating.
  5. Weekly: Monitor and adjust – Body condition scores and component tests are your feedback loop—use them!

Did you see that Penn State study on HMTBa (hydroxy analog of methionine)? Their high-producing test cows made an extra half-pound of milk fat during heat stress periods—that’s a 23% bump in fat yield! If you ask me, it’s a pretty impressive return on investment.

Here’s something many folks miss: This component ability during heat stress has a genetic angle, too. When selecting replacement heifers now, I specifically look at how their dams performed during the summer months. Those genetics for maintaining components under heat stress are worth their weight in gold.

Let’s be honest—the days of pushing for volume are over. In 2025, the real money is in components: 4.5% butterfat and 3.2% protein, which is where we should aim.

Beyond Borders: The Butter Export Opportunity You Might Be Missing

You know what’s not getting enough attention? The global butter market. Despite having plenty of butter in domestic storage, US exports are crushing it.

January’s butterfat exports jumped 145% year-over-year, hitting 7,101 MT—the largest monthly volume since 2014. And anhydrous milkfat exports? They’re through the roof at 3,897 MT in January, the highest monthly volume ever recorded.

I’m telling you, the decisions you make this April could significantly impact your milk check. Are you positioning for volume, or will you prioritize butterfat as grilling demand ramps up? The numbers suggest the latter is your better bet.

Fluid Milk’s Freefall: 5 Ways to Thrive When Class I Hits 20%

Have you been tracking the Class I utilization rates? They’ve hit a historic low of about 20%, shocking if you think about how dominant fluid milk once was. This shift hits smaller farms particularly hard since they’ve traditionally relied more heavily on fluid milk markets and often have fewer options for redirecting their production.

Here’s my survival strategy for navigating these choppy waters:

5 Tactics for the Class I Crunch:

  1. Pivot to value-added: Focus your production strategy on cheese and butter components.
  2. Look beyond borders: The export market is hungry for US dairy—find a processor tapping into that.
  3. Component focus: Every tenth of a percent in butterfat or protein makes a difference in your milk check.
  4. Know your FMMO changes: The recent reforms, especially the “higher-of” pricing mechanism, can work in your favor if you understand them.
  5. Consider diversification: Maybe it’s time to explore on-farm processing or specialty products to capture more consumer dollars.

Marketing That Moves Product: Promoting Dairy During Grilling Season

If you’re involved in processing or direct-to-consumer sales, these marketing approaches are gold during grilling season:

  1. Get digital: Social media is where people look for grilling ideas—make sure your cheese is front and center.
  2. Partner with food influencers: Find local chefs and bloggers to showcase your products in mouthwatering grilling recipes.
  3. Burger-cheese pairings: Create marketing that positions your cheese as the perfect topping for the burger.
  4. Tell your natural story: Today’s consumers want to know about your sustainable practices and animal care.
  5. Time your promotions: Seasonal discounts on grilling-friendly cheese varieties can drive significant volume.

Bottom Line: Don’t Miss This Summer’s Opportunity

Look, we all know dairy farming isn’t getting any easier. But these seasonal patterns give us a roadmap to better profitability if we want to be strategic.

With the All-Milk price projected to hit $25.58/cwt by 2034, positioning your operation to capitalize on seasonal swings isn’t just about this summer—it’s about building practices that will compound in value year after year.

The declining Class I utilization rate means the old models are changing. The producers who focus on cheese and butter components, understand market timing, and build the right processing relationships will still thrive a decade from now.

I’ve compiled a Summer Profit Planner tool to help you customize these strategies for your operation. Shoot me an email, and I’ll send it your way. Let’s make this summer’s milk checks something to celebrate!

Key Takeaways:

  • Redirect 15-20% of spring milk to cheddar production to capture summer price premiums
  • Boost butterfat yields via heat-stress mitigation and rumen-protected supplements
  • Capitalize on record-breaking butter exports (145% YOY growth in 2025)
  • Shift focus from fluid milk to cheese/butter amid historic 20% Class I utilization lows
  • Launch social media campaigns pairing cheese with grilling trends to drive sales

Executive Summary:

As grilling season drives a 10-15% surge in cheese demand, dairy producers can maximize profits by strategically redirecting milk to cheddar production, optimizing butterfat components, and leveraging booming butter exports. The USDA projects long-term price growth while declining Class I fluid milk utilization, underscoring the need to pivot to value-added products. This guide outlines actionable strategies—from heat-stress management to targeted marketing—that align production with seasonal premiums, export opportunities, and shifting consumer trends.

Complete references and supporting documentation are available upon request by contacting the editorial team at editor@thebullvine.com.

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