Dairy Product Manufacturers

The 1,197 dairy product manufacturers in the US produce dairy products from raw milk, processed milk, and dairy substitutes. Fluid milk products include milk of varying fat content, milk substitutes, cream, cottage cheese, sour cream, and yogurt. Other major product categories are cheese and cheese-substitute products; dry, condensed, and evaporated products; creamery butter; and ice cream and frozen dessert products.

Food Safety Compliance

Dairy foods are among the most regulated foods in the US due to the fact that raw milk can contain any number of dangerous pathogenic organisms.

Declining Milk Consumption

Per capita, fluid milk consumption in the US has been trending downward for more than 70 years and fell at a faster rate during the 2010s than in each of the previous six decades.

Oct 23, 2026 - Cheese and Butter Under Pressure

• US cheese and butter producers face growing pressure as milk supplies expand and dairy product inventories remain elevated, agricultural lending cooperative AgWest Farm Credit reported in October. US milk production rose 1.7% year over year, with much of the additional milk going into cheese and butter manufacturing. Cheese production increased 2.4%, while inventories grew 2.3%, pushing cheddar block prices to six-year lows. Weaker domestic demand and slowing restaurant traffic have contributed to the oversupply, despite record cheese exports. However, strong demand for whey protein, a byproduct of cheesemaking, is helping offset some losses and encouraging continued cheese production. Butter producers are also facing excess supplies and weaker prices, although strong demand for nonfat dry milk is supporting overall dairy processing revenues. Unless demand strengthens or inventories decline, cheese and butter manufacturers could continue facing pricing and profitability pressures.
• Fairlife has resumed most production at its four US dairy processing facilities after a ransomware attack temporarily disrupted operations in July, Dairy Processing reports. The ultra-filtered milk manufacturer said it discovered unauthorized third-party access to a portion of its systems, including systems tied to production. Fairlife's owner, Coca-Cola, said unauthorized access affected part of Fairlife's systems and resulted in the theft of certain data, but the company is continuing to restore impacted systems. Existing inventory kept retail product availability largely uninterrupted, and Coca-Cola said product quality, food safety, and its financial results were not materially affected. For dairy product manufacturers, the incident signals the growing cybersecurity risks facing food processing operations and the importance of maintaining strong data security, business continuity plans, and adequate inventory to minimize production disruptions and protect customer supply.
• A proposed strict federal definition of "ultraprocessed foods" under the Make America Healthy Again initiative could have significant implications for some yogurt manufacturers, The New York Times reports. Depending on how regulators define ultra-processed foods, products such as flavored yogurts that contain additives, flavorings, or emulsifiers could be classified as ultra-processed even if they are generally considered nutritious. (Plain yogurt would not be considered ultra-processed.) Industry stakeholders are concerned that such a strict definition could lead to warning-label requirements, restrictions in school meal programs, or limits on eligibility for food assistance programs, potentially affecting sales. The uncertainty is also encouraging states to pursue their own regulations. Dairy manufacturers could face pressure to reformulate products, simplify ingredient lists, and reduce additives to avoid an ultra-processed designation. While the final federal definition remains under development, the debate highlights growing consumer and regulatory focus on ingredient transparency, product formulation, and perceived healthfulness.
• Producer prices for dairy product manufacturers dipped 0.3% year over year in September, following a 4.4% decline in the previous September-to-September comparison, according to the latest US Bureau of Labor Statistics data. Retail prices for dairy and related products also declined, falling 0.7% year over year and 0.9% from August, according to the September 2026 Consumer Price Index report. Milk prices, however, rose 2.3% year over year but fell 2% from August. Meanwhile, employment among dairy product manufacturers increased 0.9% YoY in August, while the industry's average hourly wage climbed 5.1% to $31.71, down from its June peak, BLS data show. In August, dairy product shipments and inventories both declined compared to a year ago, per the Census Bureau.

Industry size & Structure

The average dairy product manufacturer has about 142 employees, operates a single location and generates $129 million in annual revenue.

• The industry consists of about 1,197 companies employing 169,600 workers and generating $154.5 billion in annual revenue.
• There are about 225 fluid milk processors employing about 56,600 workers.
• There are about 410 cheese manufacturers with 60,903 employees.
• The 450 ice cream and frozen dessert manufacturers in the US employ about 22,162 workers.
• The dairy product manufacturing industry is highly concentrated - the top 20 companies account for 53% of industry revenue.
• Large US dairy product manufacturers include Dairy Farmers of America (DFA), Saputo USA, Lactalis USA, Schreiber Foods, and Land O'Lakes.