Farms.com Home   News

2026 Dairy outlook: The ‘protein craze’ makes waves in the dairy sector

Whether it’s a general shift in consumer preferences, the surge in widespread adoption of GLP-1 drugs in North America, and/or the growing influence of social media personalities, there is little doubt that demand for protein and protein-added products is on the rise. In response, regional marketing boards in both western and eastern Canada are changing how producers will be paid for milk components in 2026. In this blog, we break down the why and the so-what behind the ‘protein craze’ and what it means for Canadian dairy producers.

Consumers are seeking high-protein dairy in pursuit of healthy diets
Less than a decade ago, the dairy sector was in a predicament. Consumers were demanding more products high in butterfat (e.g., cream, butter). On the surface this appeared a positive development; after all, how could more demand for your products be a bad thing? The problem, though, is that at a given point in time the components of milk are structurally fixed between butterfat, protein, and other solids (OS). So, to meet that additional demand for butterfat in the short-term, more milk needed to be produced; this, however, created a surplus of the other components – namely protein – that processors and consumers didn’t want at the time. Simply put, the sector was faced with a structural surplus of protein.

In response, milk boards restructured producer pay on these individual components – placing a greater dollar value on butterfat – with the aim to incentivise farmers to produce more of it. Through changes in breeding strategies and feed rations, the industry responded. Today, the Canadian dairy herd is producing more butterfat per litre of milk than ever before. For example, in Ontario over the last six years butterfat composition has increased 0.9% per year on average. Conversely, the percentage of protein has remained flat

Click here to see more...

Trending Video

CEOs of the Industry, A Conversation with Daniel Rivest, President & CEO, Olymel

Video: CEOs of the Industry, A Conversation with Daniel Rivest, President & CEO, Olymel

Swine Web’s CEOs of the Industry series welcomes Daniel Rivest, President & CEO of Olymel, for a wide-ranging conversation about leadership, the future of Canadian pork, and the opportunities ahead for one of North America’s largest pork and poultry processors.

Rivest discusses his journey to the CEO role, his leadership philosophy, and his early priorities at Olymel. The conversation explores the company’s strategic direction, its relationships with producers, and how Olymel is positioning itself for long-term growth and competitiveness.

The discussion also tackles some of the biggest issues facing Canadian pork production today, including labor availability, global competition, animal health, trade and export markets, automation, and the growing potential of artificial intelligence throughout the food production system.

Topics include:

• Daniel Rivest’s path to becoming President & CEO of Olymel

• Olymel’s current position and strategic direction

• The outlook for Canadian pork production

• Building stronger relationships with producers

• Global trade and key export markets

• Automation, innovation and artificial intelligence

• Leadership lessons and opportunities for the next generation

The conversation concludes with a Fast Five, giving viewers a more personal look at Rivest’s leadership approach and his vision for Olymel’s future.