Milk Production Rises As Herd Expansion Continues Nationwide

Growing milk supply may pressure prices ahead.

dairy ag labor reform 1280.jpg

Market Day Report

WASHINGTON, D.C. (RFD NEWS) — Milk production increased in February as herd growth and improved yields continue to expand U.S. dairy output, adding pressure on prices but supporting export potential.

The U.S. Department of Agriculture (USDA) reports U.S. milk production at 18.3 billion pounds, up 2.9 percent from a year ago. In the 24 major states, production reached 17.6 billion pounds, up 3.1 percent. Output per cow also improved, with national averages rising to 1,899 pounds per head, reflecting continued gains in productivity.

Farm-Level Takeaway: Growing milk supply may pressure prices ahead.
Tony St. James, RFD NEWS Markets Specialist

Operationally, herd expansion remains a key driver. The U.S. dairy herd reached 9.62 million head, up 211,000 from last year and continuing a steady upward trend. Producers are maintaining larger herds while also improving milk components and efficiency, supporting overall production growth.

Regionally, expansion remains concentrated in key dairy states, including Texas, Idaho, and South Dakota, while some traditional regions show more modest changes. Increased processing capacity in growth regions is also supporting higher output levels.

Looking ahead, rising milk supplies could put downward pressure on domestic prices, but stronger export demand and competitive pricing may help balance markets.

Related Stories
Fuel costs are shaping food and demand patterns.
Strong demand persists despite short-term price pressure.
High prices alone may not drive herd expansion.
Trust with lenders strengthens farm financial decision-making.
Processing slowdowns and invasive species add pressure during peak harvest
U.S. pork production is rising slightly, driven by steady domestic demand, prices, and expanding global meat export markets beyond China.

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.

LATEST STORIES BY THIS AUTHOR:

Food inflation is still building in 2026, with beef leading pressure while eggs and dairy offer some relief.
Diesel has eased for now, but the larger 2026 energy outlook still points to elevated fuel costs.
Rotational grazing can improve pasture use and soil health while helping control feed and drought-related risk.
March cold storage data showed generally tighter year-over-year stock levels across several key meat and dairy categories.
Spring Weather Splits Conditions Across American Farm Country
Florida’s import rule shows New World screwworm concerns are already affecting livestock movement and market conditions.