SUMMARY

Most of the milk produced in Montana is utilized as fluid milk consumed in Montana. In Fiscal Year 2025, an estimated 25.6 million gallons of fluid milk was consumed in Montana compared to 23.7 million gallons in Fiscal Year 2024. Of the 25.6 million gallons, 54.68% was from Montana bottling plants using milk supplied by Montana dairy farmers. Fiscal Year 2025 saw an increase in Montana consumption of 13.58% from Fiscal Year 2024. The next largest use of Montana-origin milk in Fiscal Year 2025 was for ice cream type products (ice cream, ice milk, and frozen yogurt). An estimated 4.7 million gallons of ice cream type products were consumed in Montana, 11.13% of which was manufactured by Montana plants. Approximately 3.46% of Class II fluid cream products (half and half, cream, creamers, and aerosol whip) that were consumed in Montana were from Montana plants. Montana plants account for only a small percentages of all other dairy products consumed by Montanans. Production of these products outside of Montana is largely a function of industry dynamics that relate to scales of efficiency in manufacturing and placement of manufacturing facilities near areas with greater population or areas with larger supplies of milk.

Based on the dairy consumption estimates from Fiscal Year 2016 to Fiscal Year 2025 the following describes some observed trends.

• Class I Fluid Products - The estimated consumption of Class I fluid milk products in Montana has grown with a 2.54% average annual increase from Fiscal Year 2016 to Fiscal Year 2025. Fiscal Year 2025 saw a 3.12% increase in the consumption of Class I milk products which was a continuation of the 18.89% increase from Fiscal Year 2024. Nationally, between Calendar Years 2016 and 2025, annual total fluid milk consumption experienced a decline in all but two years where there were zero changes, with the low remaining in Fiscal Year 2021 of a 4.96% decrease. This was an average yearly decline of 1.96% in this time period. The percentage of Class I milk consumed in Montana that originated in Montana plants in Fiscal Year 2025 was about 44% more than Fiscal Year 2024. From Fiscal Year 2016 to Fiscal Year 2025 there remains an overall decrease of about 22%. The USDA Economic Research Service data report: “Fluid Beverage Milk Sales Quantities by Product (Annual)” shows that on the average, for the last decade, consumption of whole milk has trended higher, and consumption of skim milk has trended lower.
• Fluid Cream Type Products - Estimates indicate that consumption of fluid cream type products increased by 11.03% annually (on average) since Fiscal Year 2016.
• Ice Cream Type Products - Estimates indicate that consumption of ice cream type products decreased by 5.29% in Fiscal Year 2025 following a 3.06% increase in Fiscal Year 2024. This is followed by a 1.85% annual increase (on average) between Fiscal Years 2016 - 2025.
• Yogurt - Estimates indicate yogurt consumption increased by 11.91% in Fiscal Year 2025 following a 11.08% increase in Fiscal Year 2024 resulting in a 3.15% annual increase (on average) in Fiscal Years 2016 – 2025.
• Butter -The estimated butter consumption increased 8.99% in Fiscal Year 2025 following an increase of 2.93% in Fiscal Year 2024. This resulted in a 4.60% annual increase (on average) in Fiscal Years 2016 - 2025.