More Milk Plants Share Shrinking Beverage Milk Market

Declining fluid milk consumption is spreading less volume across a growing number of processing plants.

WASHINGTON, D.C. (RFD News) — More U.S. beverage milk plants are operating in a market consuming substantially less fluid milk than it did a generation ago, creating a changing processing landscape for dairy producers and cooperatives.

USDA data show beverage milk consumption fell to 42.8 billion pounds in 2025, down from 43.2 billion in 2024. Consumption has declined about 22% from 55.2 billion pounds in 2008.

At the same time, the number of beverage milk plants increased to 466 in 2025, up from 441 the previous year and 400 in 2008. Average product volume per plant fell to about 92 million pounds.

That compares with nearly 138 million pounds per plant in 2008. The figures do not establish plant utilization or profitability, but they show substantially less beverage milk volume being spread across more facilities.

For dairy producers, continued changes in fluid consumption can influence regional processing needs, hauling distances, and milk-market relationships even as demand grows for cheese, yogurt, and other dairy products.

Farm-Level Takeaway: Declining beverage milk consumption is reshaping processing economics as more plants compete for substantially less fluid milk volume.
Tony St. James, RFD News Markets Specialist

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.

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