NASHVILLE, TENN. (RFD-TV) — U.S. milk production surged over the summer, climbing 3.6 percent year-over-year during June through August, while milkfat output jumped 5.3 percent, according to the latest Dairy Market Report from the National Milk Producers Federation.
Dairy cow numbers rose to 9.5 million head, and per-cow output averaged 6,153 pounds for the period — reflecting both strong productivity and rising milkfat composition, now averaging 4.2 percent.
Despite record-high production, fluid milk sales fell by four percent in August from a year earlier and 1.7 percent for the quarter, underscoring weak consumer demand. The all-milk price averaged $20.90 per hundredweight, modestly higher than July, while feed costs dropped enough to lift the Dairy Margin Coverage (DMC) margin to $11.52 per hundredweight. Still, retail dairy inflation remains mild — up just 0.7 percent from last year — compared with three percent overall food inflation.
Butter inventories declined 6 percent year-over-year, while American cheese stocks rose 3 percent. Wholesale butter prices tumbled to $2.04 per pound, down more than a dollar from last August, dragging Class II, III, and IV milk prices lower across the board. Analysts say margins may tighten again into late 2025 as milk output continues to expand faster than consumption, though international demand could lend some support.
Farm-Level Takeaway: High milk production and soft retail demand are squeezing prices and margins — making careful feed and risk management essential through year-end.
Tony St. James, RFD-TV Markets Expert
Crop-specific shifts and strong prices highlight the variability of this year’s fruit and tree nut harvest, according to USDA data.
September 29, 2025 05:11 PM
·
The decline in production marks the second consecutive year of contraction in the U.S. turkey industry.
September 29, 2025 05:05 PM
·
The USDA noted that peanut edible utilization season-to-date is down 3% on the year, despite overall stocks increasing.
September 29, 2025 04:55 PM
·
A booming butterfat market is good for some dairy products but threatens efficiency and margins for cheesemakers unless protein levels catch up
September 29, 2025 12:53 PM
·
Land values are increasing faster than farm income, making it more challenging for young and beginning farmers to expand, but supporting equity for current landowners.
September 29, 2025 09:58 AM
·
Smaller flocks and lower lay rates are pressuring table egg supplies, even as hatchery activity edges higher.
September 26, 2025 04:58 PM
·
Smaller slaughter numbers across beef and pork signal tighter supplies into late 2025, while record-low veal production highlights ongoing structural changes in the sector.
September 26, 2025 04:35 PM
·
Beal joined us on Friday’s Market Day Report to discuss her election to NASDA’s presidency, challenges facing American agriculture, and her background as a Mainer and dairy farmer.
September 26, 2025 03:12 PM
·
Potash has seen the most significant decline, falling 11 percent over the same five-year period.
September 26, 2025 01:36 PM
·
