See the latest Livestock, Dairy, and Poultry Outlook report.
Report Summary
Dairy: Following strong 2025 performance, 2026 exports on a milk‑fat basis are projected to reach a new record high supported by competitive cheese and butter prices. Exports on a skim‑solids basis are reduced due to weaker expected international demand. The domestic milk production forecast for 2025 remains unchanged at 231.4 billion pounds and rises in 2026 to 234.3 billion pounds on higher productivity per cow. Wholesale prices for cheese and butter are lowered in 2026 due to weaker expected domestic demand, even as international demand remains strong. Conversely, prices for nonfat dry milk and dry whey increase on expectations of stronger domestic demand for dairy proteins, despite expected softer international demand. The all‑milk price for 2025 is forecast at $21.15 per hundredweight (cwt), 15 cents higher than last month’s projection, while the 2026 all‑milk price is forecast at $18.25 per cwt, down 50 cents from last month’s estimate.