Dairy Report Shows More Milk, Fewer Farms Ahead

The report shows licensed dairy herds fell to 23,600 in 2025, down from 24,600 a year earlier. Average herd size increased to 397 cows, compared with 377 in 2024.

herd of cows in cowshed on dairy farm_Photo by Syda Productions via AdobeStock_132201757.jpg

Photo by Syda Productions via Adobe Stock

LUBBOCK, Texas (RFD News) — U.S. dairy farmers produced more milk in 2025, but the industry continued shifting toward fewer, larger herds.

The National Milk Producers Federation and U.S. Dairy Export Council Dairy Economics Team say U.S. milk production reached 231.7 billion pounds, up 2.8 percent from 2024.

The report shows licensed dairy herds fell to 23,600 in 2025, down from 24,600 a year earlier. Average herd size increased to 397 cows, compared with 377 in 2024.

Milk production per cow also improved. U.S. output averaged 24,390 pounds per cow in 2025, while milkfat production per cow reached 1,054 pounds.

Prices were softer for producers. The U.S. all-milk price averaged $21.19 per hundredweight in 2025, down 6 percent from 2024.

The data point to a dairy sector producing more total volume with fewer farms and stronger per-cow output. That keeps efficiency in focus as margins and regional competition shape decisions in 2026.

Farm-Level Takeaway: Dairy producers should monitor milk prices, herd efficiency, and regional cost pressures as the industry continues to consolidate.
Tony St. James, RFD News Markets Specialist

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.

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