LUBBOCK, TEXAS (RFD NEWS) — Milk prices are showing signs of recovery after a difficult start to 2026, even as production remains elevated, according to University of Georgia agricultural economist Will Secor.
The all-milk price averaged $17.50 per hundredweight in January, the lowest January level since 2021, driven by a sharp increase in milk production that ran more than 3% above a year earlier. That supply pressure weighed heavily on prices early in the year.
By February, however, conditions began to shift. Milk prices rose about $0.80 per hundredweight from January, a roughly 5% increase, improving margins despite continued higher feed costs. Production remained strong, but demand — particularly from export markets — helped support prices.
Wholesale dairy product prices have also strengthened, with gains in cheese, butter, nonfat dry milk, and whey contributing to improved market conditions. Export volumes are running more than 10% above last year through the first two months.
Looking ahead, risks remain. Strong production levels continue, supported in part by profitable beef-on-dairy dynamics, while export demand could face pressure from higher prices and global uncertainty.
