The U.S. dairy industry is growing, providing ample opportunity for producers. The $76 billion category is larger than any other, including alcohol.
However, CoBank economist Corey Geiger warns that the growth does not come without some challenges.
“Sixteen to 17% of our dairy products go to export in the United States,” Geiger explains. “So with the word ‘tariff’ coming about...you know, issues in that area, we might see a little bit of slowed sales. The upward trajectory in the dairy industry is strong, and actually, in 2024, milk beverage sales, fluid milk, were actually stable. So, if we can stabilize that category and see great growth in cheese, butter, and whey proteins—it’s a bright future.”
While those tariff concerns have been held off for a month, the market is still facing unprecedented volatility.
“We were looking at a little more supportive to that market just a couple of weeks ago, but the unprecedented volatility in the cheese market and demand being about a half a percent slower, and then the perception on what tariffs could do really kind of knocked the support out under that market,” notes JSA Dairy Division Lead Robin Schmahl. “And so, we might be looking at something a little bit less as far as an average price than what we were looking at maybe about three weeks ago.”
The USDA’s latest milk production estimates show that in December, milk in the 24 major producing states totaled 18 billion pounds.
Rising cow numbers and higher yields are boosting milk supplies, which may keep pressure on prices and farm margins into the fall.
September 25, 2025 01:01 PM
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U.S. soybean farmers are growing increasingly frustrated by Argentina’s gains in Chinese grain contracts and Trump’s pledge of economic support for the South American ally.
September 25, 2025 11:51 AM
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The USDA is moving to close the farm trade gap through promotion, missions, and stronger export financing.
September 25, 2025 10:46 AM
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Industry-wide participation in SHIP enhances biosecurity and fosters global trust in U.S. pork, says swine health expert, Dr. Christine Mainquist-Whigham.
September 24, 2025 03:32 PM
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Argentina hopes to boost demand, but critics see the move as a blow to American farmers.
September 24, 2025 11:35 AM
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Herd rebuilding looks slow, keeping cattle prices supported; beef-on-dairy crosses help fill feedlots, while imports temper—but don’t erase—tightness.
September 23, 2025 01:32 PM
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China is making strategic moves by purchasing more soybeans from Argentina and may soon follow the EU and reopen its market to Brazilian chicken exports.
September 23, 2025 01:21 PM
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Farmers should watch for soybean export rebounds with harvest, while corn and wheat shipments remain strong and sorghum demand struggles.
September 23, 2025 11:54 AM
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Rollins says the new trade relationship with Taiwan, which is committed to buying a significant amount of U.S. soy, could not come at a better time for farmers facing financial strain.
September 23, 2025 11:06 AM
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