NAICS 311512 Quarterly Industry Report
Creamery Butter Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311512Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311512 provides valuation-focused intelligence for professionals assessing creamery butter manufacturing businesses. Additional data is drawn from Bureau of Labor Statistics[7], U.S. Census Bureau[8].. Data is sourced from USDA[6] dairy production statistics and butter market data, FDA[9] dairy product standards, and SBA size standards[10] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for butter manufacturing enterprises.
Industry Snapshot
Key metrics for the creamery butter manufacturing industry.
Industry Definition & Overview
Creamery Butter Manufacturing (NAICS 311512) encompasses establishments primarily engaged in manufacturing creamery butter from milk and processed milk products, including salted butter, unsalted butter, whipped butter, cultured butter, and clarified butter (ghee). These manufacturers separate cream from whole milk or receive cream from fluid milk processors, churn it into butter through continuous or batch churning processes, and package the finished product for retail, foodservice, and industrial bakery distribution. The U.S. Census Bureau[5] classifies creamery butter manufacturing separately from fluid milk (NAICS 311511), cheese (NAICS 311513), and fats and oils refining (NAICS 311225), recognizing the specialized butter production process.
U.S. butter consumption has grown steadily over recent decades as consumers have shifted preferences from margarine back to real butter, driven by natural ingredient trends and revised dietary guidance on dairy fat. The USDA[6] tracks butter production, inventory, and pricing through the National Agricultural Statistics Service, while federal milk marketing order pricing for butterfat content directly affects raw material costs. Premium butter segments including European-style cultured butter, grass-fed butter, and organic butter command pricing premiums that have attracted new producer entry and brand development investment.
Business valuations for creamery butter manufacturers focus on cream procurement costs and butterfat pricing, churning and packaging equipment capacity, brand positioning within premium or commodity segments, and distribution relationships with retail grocery, foodservice, and industrial bakery customers. Appraisers evaluate butterfat yield efficiency, cold storage and refrigerated logistics capability, product mix between retail sticks, foodservice bulk, and industrial formats, and the competitive dynamics between branded, private-label, and imported butter products.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for creamery butter manufacturing operations
- Revenue and profitability analysis across retail stick butter, foodservice bulk, whipped, cultured, organic, and grass-fed butter product segments
- SBA size standard classification and lending threshold data for NAICS 311512
- Comparable transaction data from recent butter manufacturing acquisitions, dairy brand portfolio sales, and processing facility transactions
- Market analysis covering butter consumption growth, premium segment expansion, European-style butter demand, and organic butter pricing trends
- Workforce and labor cost benchmarking for churning operators, packaging line workers, quality lab technicians, and cold storage personnel
- Industry risk assessment including butterfat price volatility, cream supply competition, import competition, consumer health perception shifts, and cold chain costs
- Regulatory compliance overview covering USDA butter grading standards, FDA labeling requirements, organic certification, and dairy processing sanitation rules
- Capital expenditure profiles for continuous churning equipment, packaging lines, cold storage facilities, cream separators, and quality testing instruments
- Production metrics including pounds per churn cycle, butterfat yield rates, packaging line speeds, cold chain compliance, and cost per pound benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Food Manufacturing | 311 |
| Industry Group | Dairy Product Manufacturing | 3115 |
| NAICS Industry | Dairy Product (except Frozen) Manufacturing | 31151 |
| National Industry | Creamery Butter Manufacturing | 311512 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311511 | Fluid Milk Manufacturing | Fluid milk manufacturing operations supplying cream as a byproduct of milk processing to butter producers, often within integrated dairy processing facilities |
| 311513 | Cheese Manufacturing | Cheese manufacturing operations sharing raw milk and cream supply chains with butter producers and competing for dairy farm butterfat allocation |
| 311514 | Dry, Condensed, and Evaporated Dairy Product Manufacturing | Dry, condensed, and evaporated dairy product manufacturers processing buttermilk powder and anhydrous milk fat as co-products of butter production |
| 311225 | Fats and Oils Refining and Blending | Fats and oils refining operations manufacturing margarine and butter-blend products that compete with creamery butter in retail and foodservice markets |
| 424430 | Dairy Product (except Dried or Canned) Merchant Wholesalers | Dairy product merchant wholesalers distributing butter from manufacturing plants to retail grocery, foodservice, and industrial bakery customer accounts |
| 311813 | Frozen Cakes, Pies, and Other Pastries Manufacturing | Frozen cakes, pies, and other pastry manufacturing operations purchasing butter as a key ingredient for premium baked goods and pastry products |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 32.4% | 12 |
| 2 | Wisconsin | 24.3% | 9 |
| 3 | Pennsylvania | 10.8% | 4 |
| 4 | Illinois | 8.1% | 3 |
| 5 | Oregon | 8.1% | 3 |
| 6 | Texas | 8.1% | 3 |
| 7 | New York | 8.1% | 3 |
% Of Establishments
0%
32%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
8
Total SBA Loans
$1.2M
Total Loan Volume
$150K
Average Loan Size
10 yrs
Average Loan Term
10.75%
Average Interest Rate
16
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[11] classifies Creamery Butter Manufacturing (NAICS 311512) with a size standard of 1,250 employees. Butter producers within this threshold qualify for SBA-backed lending[12] and government contracting preferences, including USDA dairy commodity procurement programs that purchase butter for federal nutrition assistance and strategic reserve programs. Eligible businesses can access SBA 7(a) loans[13] for working capital, equipment, and acquisition financing, while 504 loans[14] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Northeast Bank | 8 | $1.2M | $150K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for butter manufacturing?
Creamery Butter Manufacturing is classified under NAICS code 311512, covering butter production from milk and cream per the U.S. Census Bureau[5] industry classification system.
What is the SBA size standard for butter manufacturing?
The SBA[11] sets the size standard for NAICS 311512 at 1,250 employees, qualifying eligible butter manufacturers for small business lending programs and government contracting preferences.
How are butter manufacturing businesses valued?
Valuations focus on churning equipment capacity, cream procurement costs, brand positioning, distribution relationships, and product mix per USDA[6] dairy market statistics and pricing data.
What products does NAICS 311512 cover?
Products include salted and unsalted butter, whipped butter, cultured butter, clarified butter (ghee), and organic and grass-fed butter varieties per U.S. Census Bureau[5] product definitions.
Why has butter consumption been growing?
Consumer preference shifts from margarine to natural butter, revised dietary guidance on dairy fat, and premium product innovation in cultured and grass-fed segments have driven steady consumption increases.
What risks affect butter manufacturers?
Major risks include butterfat price volatility tied to dairy markets, cream supply competition from cheese and ice cream producers, import competition from European butter, and cold chain logistics costs.
What regulations apply to butter manufacturing?
What is the premium butter market?
Premium butter includes European-style cultured butter with higher butterfat content, grass-fed butter, organic butter, and artisan small-batch varieties commanding pricing premiums over commodity retail butter.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]USDA usda.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]U.S. Census Bureau census.gov
- [9]FDA fda.gov
- [10]SBA size standards sba.gov
- [11]SBA sba.gov
- [12]SBA-backed lending sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
Disclaimer
This publication has been prepared by Fair Market Value (“Fair Market Value”) for informational purposes only. It is provided on an “as-is” and “as available” basis. Fair Market Value makes no representations or warranties, express or implied, regarding the merchantability, fitness for a particular purpose, completeness, or accuracy of the data or information contained herein. This publication is not intended to be, and should not be construed as, professional financial, legal, tax, or investment advice. Users should consult with qualified professionals before making any financial or business decisions based on the information presented.
To the extent permitted by law, Fair Market Value disclaims all liability for loss or damage, direct and indirect, suffered or incurred by any person resulting from the use of, or reliance upon, the data in this publication.
Copyright © 2026 Fair Market Value. All rights reserved. All data, information, articles, graphs, and content contained in this publication are copyrighted works and Fair Market Value hereby reserves all rights. No part of this publication may be copied, reproduced, republished, uploaded to a third party, or distributed without the prior written permission of Fair Market Value.