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.
Rather than making “cuts” to SNAP, as has been claimed, the One Big Beautiful Bill merely modifies the program’s funding structure.
September 15, 2025 12:50 PM
September 15, 2025 12:09 PM
How many burgers could you buy instead of a house?
September 12, 2025 10:04 AM
·
The Consumer Price Index rose 0.4 percent in August, led by higher shelter, food, and gasoline prices. Year over year, inflation is up 2.9 percent.
September 11, 2025 09:56 AM
·
The 2022 Census of Agriculture revealed a more than 30% decrease in U.S. dairy farms since 2017. The shrinking industry is now uniting to advocate for itself while also adopting technology to reduce operational strain.
September 10, 2025 12:55 PM
·
The Supplemental Nutrition Assistance Program (SNAP) was once again on the national stage, front and center this week before the House Agriculture Committee.
September 10, 2025 11:10 AM
·
September 10, 2025 10:07 AM
·
Labor is an ongoing crisis in the ag sector. One industry group outlines three vital reforms to the H-2A visa program that farmers need to secure an affordable, stable workforce.
September 09, 2025 12:22 PM
·
As the Trump Administration seeks out new global trade partnerships, Congress is considering more support for farmers, which comes as the Federal Reserve warns that farmers need a safety net.
September 08, 2025 11:47 AM
·
