Dr. Nicholson details the high points of his presentation, including a milk price outlook, implications of changes to milk and milk component pricing that will take place in June, and changes in butterfat value over time. As a result of the pricing changes, milk component values are expected to decrease. (3:15)

Net impacts on milk prices for a dairy will depend mostly on where they’re located, but also a little bit on how their milk is currently priced. Dr. Nicholson expects a decrease of around $0.32/cwt for dairies in his area. The panel discusses how a dairy might shift management and feeding to try to increase milkfat to recoup that loss. Dr. Zimmerman asks if the pricing changes will affect fat and protein pricing equally or differently. Butter and other non-fat solids are all going to have the same impact every month. But protein is slightly different because the formulas for protein pricing use both the price of cheese and the price of butter, and those factors interact. Brian comments the impacts for a cheese and powder type of dairy stand to be quite different from a fluid milk dairy. Chuck talks about some of the background as to why dairy cooperatives and dairy producers voted in favor of the milk pricing changes. (8:16)

The panel discusses the impact of cheese demand on component pricing and production. Billions of dollars worth of cheese processing capacity are coming online in the next couple of years, so demand should remain strong. Tariffs are definitely bringing a lot of uncertainty to the market. Some of the new cheese plants have a lot of whey processing capacity on the back end to add value. Whey products are one of our major exports. (13:54)

Brian talks about the shift in what’s considered an acceptable butterfat percentage over the span of his career. The panel talks about the influence of genomics and feeding management on that trend. Dr. Lock talks about a recently completed study in his lab feeding fresh cows two different levels of metabolizable protein and supplementing 0%, 1% or 2% of a 60:30 palmitic-oleic fatty acid blend. Cows fed a higher level of metabolizable protein and a 2% fatty acid blend produced 9.5 kilograms more energy-corrected milk in the first three weeks of lactation. He mentions the protein had more of an impact on milk fat than he had anticipated, that protein and fat supplementation showed additive positive effects, and there was a carryover effect after supplementation ceased. (21:04)

Dr. Lock summarizes some recent work on feeding high oleic soybeans to lactating cows. The panel chats about roasting vs. not roasting soybeans, transportation costs and economics. Dr. Lock’s group is now looking at feeding the oil from high-oleic beans to see how the response differs, if at all, from feeding the beans. (25:42)

Dr. Nicholson predicts a pretty good margin year for 2025, forecasting about $3 above the average long-term margin, even with the upcoming milk pricing changes. The big wild card is exports and trade policy, which could have a significant impact on what margins look like going forward. (31:32)

Panelists share their take-home thoughts. (33:36)

Scott invites the audience to Bourbon and Brainiacs at ADSA in Louisville - a bourbon tasting with all your favorite professors! Sign up here: https://balchem.com/anh/bourbon/ (37:55)

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This episode was recorded at the 2025 Petfood Forum in Kansas City, Missouri.

In 2020, the Institute for Feed Education and Research (IFEEDER), American Feed Industry Association (AFIA), North American Renderers Association (NARA) and Pet Food Institute (PFI) collaborated to publish the Pet Food Consumption Report. The organizations collaborated again to publish a second edition in 2025, which Lara presented at Petfood Forum. Data sets from both brick-and-mortar sales and Amazon sales were used to create the report. (6:16)

Lara explains that data analysts reverse-engineered product labels from dog and cat food and treats in the dataset to identify trends, including ingredient use, value, tonnage, upstream value, and what pet food adds to the economy. Dry dog food makes up the largest volume of sales at 55%, and also takes the number one spot in value of sales at 38%. Dry cat food is the second largest by volume (16%), followed by dog treats (11%). However, dog treats are the second largest by value (20%), followed by dry cat food (12%). (7:57)

Louise and Charles talk about trends in non-veterinary spending on pets, cultural shifts in consumer perceptions of pet ownership, pet food trends in developing countries, and consumer understanding of human and pet nutrition needs. (12:04)

Lara notes that the top five ingredients in the report are chicken and chicken products, whole grains, milled grains, beef and beef products, and marine-based ingredients. Chicken and chicken products made up 2.2 million tons, while marine-based products represented about 500,000 tons. Marine products doubled in volume from the 2020 report to the 2025 report, signifying a trend of higher value, more select ingredients coming into the pet food space. Salmon and cod are the primary marine ingredients. Lara remarks that the specialty ingredients side of the report is fascinating, with items like blueberries, tomatoes, peas, beet pulp, cranberries, and flaxseed making an appearance. Louise explains the 2020 report had less than 400 ingredients, while more than 600 ingredients appear in the 2025 report. Charles notes that since the last report, there has been a slight shift to more fresh meat products and slightly less rendered products. (16:10)

About half the cat and dog food is made up of upcycled ingredients. The panel discusses consumer perceptions of byproducts and co-products, the sustainability role that these products play in the industry, and their organizations’ commitments to education and policy efforts. (22:27)

Pet food manufacturers purchase 9.8 million tons of ingredients valued at about $13.2 billion, which then represents about $52 billion in sales. Lara talks about some of the upstream impacts of the pet food industry. Pet food is manufactured in 43 states, with the top five being Missouri, Iowa, Kansas, Pennsylvania, and California. Each of these states is selling more than $700 million worth of ingredients to pet food manufacturing. Relatively few pet food ingredients are imported; amino acids, vitamins, minerals, and marine products would be the exception. Manufactured pet food has a fairly strong export market. (29:55)

Lastly, panelists share their take-home thoughts. (35:56).

The 2025 report is available at https://www.ifeeder.org/. You can download the full report as well as graphics, and there is a feature that allows you to create your graphs and charts with the data.

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This episode was recorded in Reno, Nevada, during the 2025 Western Dairy Management Conference.

The panel discusses their individual experiences with outbreaks in different states. Beth talks about her group’s microbial surveillance technology they used to compare rectal swabs from positive and non-positive herds. They noted elevations in specific virulent E. coli, Salmonella spp., and Clostridium perfringens in the HPAI-positive herds. Enrique noted that in California, the outbreak began in the South Valley during periods of heat stress, which exacerbated symptoms. He also felt that some dairies panicked a little and moved cows too much, which did not help. In the North Valley, the outbreak happened in cooler weather, and dairies purposefully did not move cows out of their pens and provided supportive therapy within the pen. (5:25)

Dr. Schcolnik emphasized making sure i’s are dotted and t’s are crossed in your nutrition program to help manage through an outbreak. The immune system is an obligate glucose utilizer, so energy is key, as are protein and trace minerals. He noted they also added binders to diets, and either probiotics or double doses of yeast to keep the rumen healthy. Decreasing intake is a big symptom, so he recommends vitamin B supplementation to stimulate appetite. (12:30)

The panel discusses how the Texas and California outbreaks differed from one another, including heat stress, recovery in milk production after infection, bird migration and cattle movement. Enrique notes that in California, it seemed like transmission was going downwind. Animal movement, wild birds and milk trucks were also implicated. (14:31)

Several companies are investing in vaccine development, but the virus mutation is a challenge. Dr. Spencer wonders if the vaccine will end up resembling the human flu vaccine where you hope to target the general structure of the virus to reduce impact. The panel talks about natural immunity and how cows will be impacted in the lactation after they were ill. Dr. Schcolnik has observed that a percentage of cows who were dry during the outbreak aren’t performing as well after freshening. He hypothesizes this could be due to mammary cell death during infection, as the virus lyses the cell as it exits the cell. (24:41)

The panel discusses practical recommendations for dairy producers to prepare for or help mitigate during an outbreak. Biosecurity is key. Vaccines are hopefully on the way, but until then, minimizing cattle movements within the herd, post-dipping cows as soon as possible after the machine falls off and minimizing splashing of milk are all good practices. The panel looks forward to more research about all the different ways the virus transmits. They’re also eager to learn more about treatment plans and what has worked for different dairies regarding giving fluids, altering rations, boosting the immune system, managing co-infections and impacts on calves and heifers. (29:18)

Lastly, panelists share their take-home thoughts. (37:33)

Scott invites the audience to Bourbon and Brainiacs at ADSA in Louisville - a bourbon tasting with all your favorite professors! Sign up here: https://balchem.com/anh/bourbon/

Please subscribe and share with your industry friends to invite more people to join us at the Real Science Exchange virtual pub table.

If you want one of our Real Science Exchange t-shirts, screenshot your rating, review, or subscription, and email a picture to anh.marketing@balchem.com. Include your size and mailing address, and we’ll mail you a shirt.