The newfound value of whey protein stems from its ability to deliver concentrated protein in a low-calorie format, aligning perfectly with two decades of rising health and fitness trends. Doctors recommend higher protein for healthy aging, and its popularity is soaring among weight lifters, including a growing number of women and Generation Z. Furthermore, prevalent eating trends like Keto diets, alongside the recent boom from anti-obesity medications, have turbocharged demand. Estimates for the whey protein market range from $5 billion to $10 billion, with analysts projecting a doubling over the next decade. The price of high-protein whey powder alone has tripled since 2020.

This dramatic shift in demand has completely altered the economics of the dairy industry. Historically, whey was a disposal problem, often pumped into rivers or used as cheap animal feed. However, as dairy industry consultant Mike McCully points out, there are now times when cheese itself becomes the byproduct, with whey production generating more revenue for cheese plants. This transformation is evident in dairy farmer milk checks; while whey contributed an average of 2.7% to monthly milk checks in the early 2000s, it has consistently made up 8.7% since 2021, sometimes exceeding 10%.

The increased value of whey has served as a crucial buffer for dairy farmers, especially given that the inflation-adjusted price farmers receive for milk has remained stagnant for 25 years. Farmers like Josh Meissner of Norm-E-Lane in Wisconsin, who manage large-scale operations to control costs, still have limited control over milk prices, operating as “price takers.” Their milk, sold to cheese producers like Nasonville Dairy, fetches essentially a federally regulated co-op price, with the rising whey market preventing prices from collapsing during challenging periods.