Milk Wave Pressures Prices, Spurs Dairy Cow Culling

Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.

LUBBOCK, Texas (RFD-TV) — Profitable milk and cheaper feed in 2024 set the stage for a supply surge that’s now weighing on prices — and rippling into the beef complex. U.S. dairy cow numbers climbed to 9.52 million in August, the highest since 1993, with Texas at 699,000 head — the most since 1958. With more cows on line, processors are expanding capacity alongside them.

Output per cow is also up. August production reached 2,050 pounds per head — a record for the month and 1.3 percent above August 2024 — pushing three-month milk production 3.6 percent higher year over year. As product piles up, pricing has slipped: 40-lb cheddar blocks have ranged from $1.95 to $1.70 per pound and sit roughly 30 cents below last year; butter fell from $2.50 to about $1.70 by mid-October; and NFDM is near $1.14 — it’s low for 2025.

Those declines are flowing back to mailbox checks while cull dynamics tighten the beef pipeline. Beef cow slaughter remains lower, but dairy culling has matched last year since mid-year and could increase as margins narrow and cull values stay strong — absent any government buyout, the market will do the rationing.

Farm-Level Takeaway: Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
Tony St. James, RFD-TV Markets Expert

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:

WTO gauges point to agricultural raw materials trade growing more slowly than overall goods, reinforcing the need to manage export risk and monitor policy shifts closely.
Improved export prospects and higher crop prices strengthened future expectations despite continued caution about spending.
China’s renewed purchases signal improving sorghum demand at a time when export markets are otherwise uneven. Meanwhile, agriculture groups across the U.S, Canada, and Mexico want to protect close trade relations.
The Environmental Protection Agency confirms that new single-fluorinated pesticides are not PFAS and remain fully compliant with current safety standards.
Strong demand supports sweet potatoes, but grading challenges and rising costs weigh on returns for Southeastern growers.
Pressure on grain storage capacity and stronger export positioning are pushing more grain onto railroads, highways, and river systems as logistics become a key bottleneck this fall.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.