Wisconsin Butter Law: Grading Standards, Labels, and Margarine Rules

Wisconsin butter law stands apart from every other state’s: all butter sold at retail in Wisconsin must carry an official state grade, only licensed graders may assign that grade, the label must display it in a specific form, and separate statutes sharply limit when margarine may be served or how it may be packaged. The rules sit in Wis. Stat. §§ 97.175, 97.176, and 97.18, with details filled in by Wis. Admin. Code ATCP 85.

All Retail Butter Must Be Graded

USDA butter grading is voluntary nationwide and runs on a fee-for-service basis.¹ Wisconsin does not follow that model. Under Wis. Stat. § 97.176, it is illegal to sell, offer for sale, or possess with intent to sell any butter at retail unless it has been graded.²

The requirement reaches butter made in Wisconsin and butter brought in from elsewhere. Out-of-state butter must carry a label showing it complies with Wisconsin’s grade standards and must display the grade in a manner equivalent to what in-state producers use. A national brand cannot skip the step because its butter was graded under another system. Price advertising is pulled in as well: an ad listing butter at a stated price must include the grade in type no smaller than 10-point.²

The Four Grades and How They’re Set

Wis. Admin. Code ATCP 85.02 lays out a fixed sequence. A grader draws a representative sample and evaluates flavor first, by taste and smell, and that assessment sets a baseline grade. When more than one flavor issue is detectable, the lowest-scoring characteristic controls.³

Body, color, and salt are evaluated next. Defects in those categories can only lower the preliminary grade, through a system of “disratings.” If the disratings exceed what the flavor classification allows, the final grade drops.³ The four possible designations are:

Wisconsin Grade AA, the top tier, with the best flavor and smooth texture, even color, and no significant defects.
Wisconsin Grade A, which allows slightly more variation while still meeting a high standard.
Wisconsin Grade B, which permits more pronounced flavor characteristics and is commonly used in cooking and commercial applications.
Wisconsin Undergrade, which fails to meet Grade B and cannot be sold at retail with a standard grade label.

Because flavor sets the ceiling and the other characteristics can only subtract, a sample with excellent body and color but a noticeable off-flavor still lands in a lower grade.

Who Can Grade Butter

Only a licensed grader may assign a Wisconsin grade. Wis. Stat. § 97.175 requires an applicant to apply through the Department of Agriculture, Trade and Consumer Protection (DATCP) and demonstrate competence through an examination. The statutory fee is $50, which DATCP may adjust by rule, and veterans eligible under Wis. Stat. § 45.44 pay nothing.⁴

Each license expires September 30 of the second year after issuance. DATCP can deny, suspend, or revoke a license on findings that the grader applied inaccurate grades, lacks competence, or obtained the license by fraud.⁴ DATCP typically schedules the exam at the applicant’s dairy plant, administered by one of the agency’s dairy sanitarians.⁵

What Has to Appear on the Label

Wis. Admin. Code ATCP 85.06 sets the label requirements. The package must display one of the four grade statements: “Wisconsin Grade AA,” “Wisconsin Grade A,” “Wisconsin Grade B,” or “Wisconsin Undergrade.” Minor variations are allowed, such as abbreviating the state name to “Wis.” or placing the letter before the word “Grade.”⁶

The grade statement must be printed in type no smaller than 12-point on a strongly contrasting background and must appear prominently on the panel facing the consumer under normal display conditions. Qualifying language like “when graded” is prohibited alongside the grade statement.⁶

Butter manufactured in Wisconsin that earns Grade AA or Grade A may also carry a special insignia: the grade statement enclosed within an outline map of the state. The map lines must be at least 3 points wide, and no other text or graphics may appear inside the outline. Using the insignia on butter that does not qualify, or any similar-looking mark, is a violation.⁶

Margarine Rules That Still Apply

Wis. Stat. § 97.18 keeps several margarine restrictions in force that most other states long ago repealed.

In Restaurants

A restaurant cannot serve colored margarine as a substitute for table butter. The sole exception is a customer who specifically orders margarine.⁷ A posted sign disclosing the use of margarine does not satisfy the statute; the customer must have asked for it.

In State Institutions

Serving margarine to students, patients, or inmates at any state institution as a substitute for table butter is prohibited. The exception is narrow: both the institution’s superintendent and the physician in charge of a specific patient or inmate must determine that the substitution is necessary for health reasons.⁷ A blanket switch for budget reasons would not qualify.

At Retail

Margarine sold at retail must be packaged in one-pound units. The word “oleomargarine” or “margarine” must appear on the package label in type at least as large as any other text on the label, in a contrasting color, with a complete list of ingredients. Each individual portion inside the package must also carry the word “oleomargarine” or “margarine” in type no smaller than 20-point.⁷

Penalties

Margarine violations under § 97.18 carry graduated penalties. A first offense draws a fine of $100 to $500, up to three months in jail, or both. A subsequent offense moves to a fine of $500 to $1,000 and imprisonment of six months to one year.⁷

Butter grading and labeling violations in Chapter 97 that lack their own penalty fall under the general provision in § 97.72: a fine of $100 to $1,000, up to six months in jail, or both.⁸ Selling ungraded butter at retail, misusing the state-outline insignia, or advertising butter without the required grade all fall under that provision.

1
Federal Register. Plant Records To Include Grade Label Butterfat Testing
2
Wisconsin State Legislature. Wisconsin Code 97.176 – Butter; Grading; Label
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Wisconsin State Legislature. Wisconsin Administrative Code ATCP 85.02 – Procedure for Determining Wisconsin Butter Grades
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Wisconsin State Legislature. Wisconsin Code 97.175 – Butter and Cheese Grader License Requirements
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Wisconsin Department of Agriculture, Trade and Consumer Protection. Food, Dairy, and Retail Food Licenses
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Wisconsin State Legislature. Wisconsin Administrative Code ATCP 85.06 – Grade Labeling
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Wisconsin State Legislature. Wisconsin Code 97.18 – Oleomargarine Regulations
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Wisconsin State Legislature. Wisconsin Statutes Chapter 97 – Food Regulation