WASHINGTON, D.C. (RFD News) — Rising milk production is increasing supply in 2026, but stronger exports and improving dairy prices are helping support the market outlook for producers, according to the USDA’s latest Livestock, Dairy, and Poultry Outlook.
Milk production is forecast at 235.3 billion pounds, driven by a larger dairy herd that is offsetting slightly lower output per cow. Cow numbers have expanded year over year, pushing overall production higher even as margins remain tighter than last year.
Wholesale dairy prices are showing mixed movement. Cheese and nonfat dry milk prices have strengthened, while butter and whey prices have softened. Strong demand, particularly in spot markets for nonfat dry milk, is tightening supplies and supporting price gains.
Exports remain a bright spot. Dairy export volumes reached record levels in February, with gains across cheese, butter, dry whey, and skim milk products. At the same time, imports have declined, tightening domestic supplies.
Despite stronger exports, domestic use is expected to soften slightly as higher prices weigh on consumption.
Farm-Level Takeaway: Strong exports and prices are helping offset rising milk supplies.
Tony St. James, RFD NEWS Markets Specialist
Livestock Conservancy Senior Program Manager Jeannette Beranger explains the upcoming poultry census and ongoing efforts to preserve rare and heritage poultry breeds raised across the U.S.
February 13, 2026 02:20 PM
·
Alliant Chairman of Agriculture and former U.S. Ag Secretary Mike Johanns explains the R&D Tax Credit, the recent Tax Court ruling, and ways livestock producers and agribusinesses can qualify.
February 13, 2026 01:51 PM
·
In the U.S. and Canada, reduced planted acres—not yield losses—led to a decline in potato production, while Mexico saw modest gains due to increased yields and harvested areas.
February 12, 2026 05:11 PM
·
RealAg Radio host Shaun Haney talks about the U.S. House’s latest vote to roll back tariffs on Canada and the ongoing discussions surrounding North American trade.
February 12, 2026 05:02 PM
·
AFBF Economist Samantha Ayoub discusses the latest data on Chapter 12 farm bankruptcy filings and what the troubling trend signals for the farm economy. At the same time, bigger loans and higher rates are squeezing working capital and increasing financial risk.
February 12, 2026 04:26 PM
·
Corn demand remains supportive, but weaker soybean buying limits overall export momentum.
February 12, 2026 03:29 PM
·
