Higher production. The driver behind USDA’s look at 2025 dairy production and price forecast, as well as the initial outlook for the 2026 calendar year, according to World Agricultural Outlook Board Chair Mark Jekanowski.
Mainly driven by increased cow inventories, but also some growth in milk per cow as well. With next year’s projected milk production to be up 600 million pounds year over year.
Solid dairy exports are expected up in 2026, as well as increased domestic use, both this year and next. Turning to dairy price forecast…
All milk price forecast was raised by $0.50 per hundredweight. It’s now at $21.60 per hundredweight. Speaker2: Based on observed price strength, while the all milk price for next year is lowered $0.45 to $21.15 a hundredweight based on increased production. Speaker1: For 2026.
Higher dairy supplies means higher dairy product prices expected to be down a bit year over year, not by a lot, but by enough to reduce the class three price for 2026 by about $1.20 per hundredweight to $17.50 per hundredweight.
Reduce the class four price by about $0.35 per hundredweight, and the all milk price will be down about $0.45 per hundredweight to $21.15 per hundredweight.
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