USDA Forecasts Higher Milk Supplies and Prices

The USDA expects improved milk prices to be supported by strong demand even as supplies grow.

In its latest supply and demand report, the department says increased milk production per cow and cow inventories are expected to increase supplies through 2026.

USDA expects prices this year for cheese, butter, nonfat dry milk, and whey to increase because of recent price strength. The all-milk price for 2025 increased by 35 cents to $21.95 per hundredweight.

The 2026 prices for cheese, butter, and whey should stay strong based on expected demand. Nonfat dry milk prices were unchanged from the May estimate, while Class III and Class IV prices increased.

The all-milk forecast price for next year increased by 15 cents to $21.30 per hundredweight.

EDITOR’S TAKE:

Any way you look at it, the dairy industry should be able to sustain strong pricing. Historically, it has been unusual to see supply and demand growing simultaneously, but the shift in demand towards cheese, butter and whey has supported the milk market. As long as costs for feed and other inputs remain relatively steady, dairy farmers are expected to do well financially.

Dairy and other livestock farmers, especially beef producers, are experiencing very good times currently. Put them at the top of your customer prospect list. This would be a great target audience for one of the new AGwagon trucks. They are rugged and built to withstand more than the average truck on the market today!