The Viral Milk That Helped Set Off America's Protein Boom

The Viral Milk That Helped Set Off America's Protein Boom – Odd Lots

Market views

Bullish

PROTEIN— Whey protein isolates are at record high prices of $10/pound with $11 billion in new dairy plant investments focused on protein extraction, indicating strong demand and pricing power in protein markets
DAIRY— Dairy consumption is at 40-year highs driven by cheese, yogurt, and high-protein products, countering the narrative of declining dairy consumption
KO— Coca-Cola's Fairlife brand has become their newest billion-dollar brand after a decade in the market, representing significant growth in the dairy-protein beverage space
PEP— PepsiCo is launching Propel water with 20 grams of clear protein and reformulating Muscle Milk with dairy-based protein, following Coca-Cola's success in high-margin protein beverages
BEEF— Angus calves from dairy farms using genomic technology are selling for $1,200-$1,800, showing strong beef prices and additional revenue opportunities from crossbred cattle
BIOTECH— Genomic technology has transformed dairy production with 8x improvement in genetic gains, increasing value from $13 to significant multiples through biotechnology advances

Bearish

GRAINS— Grain prices are down due to oversupply, which is negative for row crop farmers though beneficial for livestock producers

Not investment advice.