The increase in farmer share comes amid changes in both farmgate and retail pricing. According to the USDA’s monthly Food Dollar series, the average retail price for a pound of butter in April was $4.91, with farmers receiving $2.58. This is a notable improvement compared to previous years when farmer shares often hovered below 50%, squeezed by processing and marketing costs along the supply chain.

Butter is one of the few dairy products where price transparency between producers and retailers is relatively easy to track, making it a valuable barometer for dairy market health. While farmers’ shares of other dairy items like cheese and yogurt are often more opaque or diluted by added-value processing, butter remains closer to its raw material origins, enabling more direct reflection of milk value in final pricing.

The USDA’s Food Dollar analysis helps break down consumer spending, showing how much of each food dollar reaches the farmer versus going to processing, packaging, distribution, and retailing. The latest figures suggest that recent gains in farmer share may be tied to stronger demand for butter, improved milk pricing conditions, and shifts in processing margins.