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
Mike Steenhoek with the Soy Transportation Coalition discusses supply chain challenges facing agriculture as snow, sleet and ice threaten most of the Eastern U.S.
January 23, 2026 01:36 PM
·
Rural population growth and stabilizing economic indicators point to post-pandemic recovery, but uneven income, shifting industries, and regional divides remain key challenges for rural communities.
January 23, 2026 08:00 AM
·
Brian Earnest, an animal protein economist with CoBank, shares insights into current demand trends and the challenges facing broiler production.
January 22, 2026 06:34 PM
·
From tariff talks in Europe to SCOTUS uncertainty and rising farm losses, analysts say policy and global supply will shape grain markets in the year ahead.
January 22, 2026 12:40 PM
·
Large Brazilian crops heighten downside price risk if the weather allows production to reach projected levels.
January 22, 2026 12:38 PM
·
Dairy farmer and Discover Ag co-host Tara Vander Dussen joined us to discuss the Whole Milk for Healthy Kids Act, her experience at the signing, and what’s next for her family and farm.
January 21, 2026 12:42 PM
·
