LUBBOCK, Texas (RFD NEWS) — Tight beef supplies and rural job losses are colliding with a major shift inside the U.S. dairy sector, creating new momentum for farmer-led solutions to expand domestic production of ground beef. Western United Dairies says its “Make America More Ground Beef” proposal reflects changing market realities — particularly excess milk and record dairy cow numbers driven by protein demand.
According to CoBank analysis by Corey Geiger, U.S. dairy farmers have responded aggressively to market incentives. Butterfat production has surged 5 percent to 6 percent year over year, pushing the national milkfat average near 4.3 percent and creating an oversupply. At the same time, massive investment in protein-focused dairy processing — including cheese, whey, ultra-filtered milk, and yogurt — is reshaping milk checks, with protein poised to be the dominant revenue driver for years to come.
That protein focus has kept dairy cow numbers at 30-year highs, now near 9.6 million head, and is supported by strong demand for beef-on-dairy calves. Geiger suggests we may begin to see dairy farmers cull cows, thereby providing an influx of lean ground beef.
Western United Dairies argues that the USDA can use existing authority to better align these trends, increasing domestic beef throughput without new legislation or imports while keeping packing plants open.
Currently, processors import lean beef trimmings to mix into ground beef to meet the domestic demand.
Farm-Level Takeaway: Protein-driven dairy growth is boosting beef supply potential, creating an opening to support rural jobs and ground beef availability.
Tony St. James, RFD NEWS Markets Specialist
September 15, 2025 12:09 PM
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