The International Dairy Foods Association (IDFA) is urging Congress to expand SNAP dairy incentives to cover a broader range of wholesome products — including milk, cheese, yogurt, and cultured dairy. The proposal comes as the latest USDA Dairy Products Report points to strong output and shifting market signals.
July dairy production highlights
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Cheese: Total output reached 1.215 billion lbs (+2.1% YoY; a July record). By category: Mozzarella 412.3M (+3.1% YoY), American 475.7M (+2.3% YoY; YTD 3.4B, +3.7%), Italian styles 518.0M (+4.1% YoY). Cheddar slipped 1.5% vs. June but rose 6.7% YoY to 327.1M.
Butter: 180.1M lbs (-4.4% MoM; +9.8% YoY), the highest July volume since 1942.
Yogurt: 437.6M lbs (+8.4% YoY; YTD +8.1%). Hard ice cream: 69.3M (+4.2% YoY; YTD -1.3%).
Whey: 63.3M lbs (-9.8% MoM; +0.6% YoY); stocks 50.7M (-12% MoM; -20.7% YoY). Processors boosted WPC/WPI output, both on track for record highs.
Nonfat dry milk (NFDM): 129.6M lbs (-7.8% MoM; +7.1% YoY). Stocks 236.2M (-3.2% MoM; +4.1% YoY).
Skim milk powder (SMP): 44.4M lbs (-21.7% MoM; -14.3% YoY; YTD -21.7%).
Market trends
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CME prices: Cheddar blocks at $1.615/lb, barrels at $1.6125/lb — both sharply below last year. Butter slid to $1.86/lb, the lowest since 2021. NFDM finished at $1.165/lb, while whey traded at $0.5925/lb.
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Exports: Strong international demand prevented deeper declines, but global powder markets remain under pressure amid higher output in Europe/Oceania and weak Chinese buying.
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Outlook: USDA raised its 2025 milk production forecast for the 7th straight month and also lifted 2026 estimates, citing higher cow numbers and productivity.
Demand and nutrition angle
Despite weaker fluid milk sales (-1.2% YoY in July), whole milk held steady (+0.5% YTD). Industry groups highlight an opportunity in the ongoing “protein boom” — fueled by GLP-1 drug adoption and dietary shifts toward high-protein foods.
The IDFA, alongside the National Milk Producers Federation (NMPF), argues that dairy is nutrient-dense and essential for health, and calls on Congress to:
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Bring whole and 2% milk back to schools.
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Expand SNAP dairy incentives to include a wider range of products and fat levels.
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Recognize dairy’s role in the upcoming Dietary Guidelines for Americans.
“IDFA appreciates that the strategy recognizes milk and other dairy foods as nutrient-dense options that play a vital role in health and wellness,” said Michael Dykes, IDFA president and CEO.
Source: Farmers’ Advance
