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Dairy - Market Outlook

See the latest Livestock, Dairy, and Poultry Outlook report.

Report Summary

Dairy: Milk production is forecast to be higher for 2026 and 2027, mainly due to projected herd expansion resulting from low slaughter rates, adequate milk margins above feed costs, and expected longer cow retention. Adjustments to dairy export and domestic use forecasts were mixed in 2026, but higher in 2027, reflecting a higher milk supply to meet both domestic and international demands. In 2026, milk production is forecast at 236.6 billion pounds, while for 2027 it is projected at 238.1 billion pounds. Higher milk supply is expected to lower milk prices. The all-milk price for 2026 is now projected at $20.00 per cwt, 70 cents below the previous forecast, while for 2027 it is forecast at $19.85 per cwt, $1.05 below the previous projection.