Protein shampoo and tzatziki are part of the latest supermarket fad increasing the price of whey, which has risen by 470 percent over the last three years. For Gippsland dairy farmers, the financial benefits are yet to come.
What’s happening? Driven by a surge in demand for high-protein foods, the global market for whey - a byproduct of cheese-making - has grown significantly. As a result, internationally the raw component now costs around 4.7 times more than in 2023.
The wholesale price for protein concentrate in America has increased from $2.5 USD per pound in 2023 to $11.75 USD per pound this year, according to market analysis by Omni Calculator.
Neerim South dairy farmer Dave Johnson told the Monitor although dairy farmers haven’t seen the benefits of their product increasing in value yet, the news has brought some optimism to an industry badly hit by increasing fertiliser and fuel costs.
Where’s the whey? When farmers sell milk onto manufacturers or producers, the product is often split into two components - milk fat and protein.
“The milk fats go on to make butter and other products that are relatively cheap,” said Johnson, “but the protein component is in high demand now, so it's worth considerably more than what it was 12 months or two years ago.”
What’s the market saying? Market analysis from the food and agribusiness bank Robobank found Australian dairy-based proteins continue to outperform butterfat markets due to consumer demand for health and nutrition products.
Since July 2025, Bulk Nutrients - an Australian manufacturer of health products - has lifted the price of its whey protein concentrate from $42 to $59 and whey protein isolate from $55 to $79.
However, Johnson said the increased value of whey protein hadn’t trickled down to farmers just yet because they are locked into yearly contracts.
“The milk price actually came down a bit last year but for the next financial year, there should be a benefit.”
Whey to go: Johnson, who owned and operated Tarago River Cheese before selling it in 2023, said the increased whey price will benefit cheese producers the most.
“If you put in 100 litres of milk and you get 15 kilograms of cheese out of it then there's 85 litres of whey left over. If you can get a good return on the whey it certainly makes the cheese production more viable.”
He said he hadn’t changed his farming practices on his 450-acre dairy farm because of the trend, but if the price of whey continues to rise he might look at breeding options to heighten his roughly 280 cow’s whey output.
Gippsland farmers meet the challenge: AusIndustry Regional Manager and Stratford farmer Ben Gebert told the Monitor the trend towards a higher whey price was a good sign for Gippsland farmers.
“Protein is certainly a fixation at the moment, so bring it on for Gippsland's dairy sector. Anything that's derived from dairy going up in price can only be a good thing for Gippsland.”