Dairy Prices Slide, Exports Shift, and Inventories Tighten

Weaker U.S. dairy prices come as value-added exports expand and ingredient inventories tighten, creating mixed market signals for producers.

NASHVILLE, Tenn. (RFD-TV)Dairy product markets softened in October as U.S. prices for butter, cheese, and most powders weakened sharply compared to last year. Butter fell nearly $1 per pound, Cheddar dropped by 50 cents, and 40-pound blocks fell more than 40 cents, reflecting both ample domestic availability and slower product movement. These price declines come even as some value-added dairy exports continue to grow impressively.

June–August dairy export data reveal major gains in high-value categories: butter exports surged 162 percent, American-type cheese shipments jumped 129 percent, and Cheddar exports climbed 131 percent from last year. However, large declines in skim milk powder exports and modest drops in whey protein exports signaled uneven global demand.

Inventories also played a role. Dry skim milk stocks finished August down 12 percent from last year, and dry whey stocks fell 16 percent, tightening supplies in key ingredients despite weaker spot prices.

Regionally, processors reported mixed throughput: cheese plants maintained stronger utilization rates, while powder plants saw reduced volumes.

Looking ahead, global price relationships and tariff uncertainties may continue pushing buyers toward value-added U.S. dairy products.

Farm-Level Takeaway: Weaker U.S. dairy prices come as value-added exports expand and ingredient inventories tighten, creating mixed market signals for producers.
Tony St. James, RFD-TV Markets Specialist
Related Stories
Export volumes remain positive year-to-date, but weaker soybean loadings and slowing wheat movement hint at early bottlenecks in global demand or river logistics. Farmers should watch basis levels and freight conditions as export competition heats up.
Harvest Marches on as River Logistics And Inputs Steer Bids
John Appel with the Farmers Business Network (FBN) joins us for a closer look at the 2026 Crop Protection Market Outlook Report.
Imported lean beef continues to play a critical role in U.S. hamburger and ground-beef production, with any added volume from Argentina serving as a supplement — not a market overhaul.
A fast-moving series of trade signals from the White House and key partners is resetting the near-term outlook for U.S. agriculture.
Stay alert for trade announcements—especially border reopening timelines, tariff threats, and developments in Brazil’s export flows.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

How many burgers could you buy instead of a house?
Let’s take a look at harvest progress as of early September 2025, across all 50 U.S. States, prepared by Market Day Report anchor and RFD-TV Markets Expert Tony St. James.