LUBBOCK, Texas (RFD NEWS) — Milk prices are entering 2026 under heavy pressure as global and domestic production continues to outpace demand, raising concerns about how quickly the market can work through a growing surplus.
According to analysis from Ben Laine of Terrain, the all-milk price fell to $20 per hundredweight in October, more than 20 percent below a year earlier.
U.S. milk production has expanded sharply, with output up more than 4 percent year over year late in 2025, driven by the largest milk cow herd in decades and higher per-cow productivity. At the same time, milk output has increased across the European Union and New Zealand, flooding global markets and intensifying price competition for exports.
Product markets adjusted quickly. Butter prices led the downturn, followed by cheese, as ample cream supplies and expanded processing capacity collided with weaker global pricing. Nonfat dry milk declined more modestly, while whey remained comparatively firm due to strong protein demand.
Despite lower prices, production may be slow to respond. Beef-on-dairy revenues and risk management coverage have softened the immediate financial signal for some producers. Still, higher slaughter rates suggest adjustment has begun.
Often overlooked, cotton wholesalers act as stabilizers during market stress, translating fragmented retail demand into workable production programs for mills and manufacturers.
January 30, 2026 08:00 AM
·
Strong blending demand continues to support ethanol use even as production and exports fluctuate.
January 30, 2026 07:00 AM
·
AFBF Economist Danny Munch shares a closer look at the dairy market and the forces impacting producers today.
January 29, 2026 02:52 PM
·
UT Extension also offers tips to help consumers stretch their grocery budgets, including meal planning, sticking to a shopping list, and choosing store or generic brands.
January 29, 2026 01:13 PM
·
Early indications suggest the U.S. cattle industry may be nearing the end of its liquidation phase. Oklahoma State University livestock economist Dr. Derrell Peel says the industry could be at or near the cyclical low.
January 29, 2026 12:44 PM
·
Beef x Dairy cattle with strong genetics and documentation are earning prices comparable to native feeders.
January 29, 2026 08:00 AM
·
FarmHER Chris Nellis and her daughters navigate loss while carrying on a 300-year farm legacy, milking cows in upstate New York.
January 28, 2026 03:27 PM
·
Mixed product pricing and rising milk supplies suggest margin management will remain critical as 2026 unfolds.
January 28, 2026 06:00 AM
·
Marilyn Schlake with the UNL Department of Agricultural Economics joined us for a closer look at the evolving role of livestock sale barns.
January 27, 2026 12:19 PM
·
