LUBBOCK, Texas (RFD-TV) — Milk prices are falling rapidly as expanding supplies overwhelm seasonal demand, creating growing financial pressure for U.S. dairy producers. According to Dr. David Anderson, livestock economist with Texas A&M AgriLife Extension, the usual holiday demand boost for butter and cheese failed to materialize this fall as milk production surged to multi-decade highs.
Strong milk prices in 2024 and lower feed costs encouraged herd expansion, while added processing capacity supported higher output. High cattle prices also contributed, boosting dairy revenues through higher cull cow values and record prices for beef-on-dairy calves. By September 2025, the U.S. dairy herd reached 9.581 million head — the largest since the early 1990s — while milk production per cow continued to climb.
Higher cow numbers and improved productivity pushed October milk output up nearly 4 percent from a year earlier. As supplies built, dairy product prices slid sharply. Butter, cheese, and nonfat dry milk prices all dropped well below last year, pulling Class III and Class IV milk prices lower.
Some herd contraction is expected, though strong cull and calf values may slow supply adjustments.
F-10 Wound Spray can now be used for livestock and other animals as officials monitor the ongoing New World Screwworm outbreak in Mexico.
March 13, 2026 01:31 PM
·
China’s stricter inspection rules prompt Cargill to pause soybean exports from Brazil, briefly lifting U.S. soybean prices as traders anticipate potential shifts in global trade, as export demand remains supportive across all major U.S. commodities.
March 13, 2026 12:57 PM
·
Suderman joins Tony St. James in the RFD Studios to discuss how geopolitical tensions are triggering global transport disruptions, new inflation pressures, and other challenges for agriculture to navigate.
March 13, 2026 11:08 AM
·
Severe drought in South Texas is forcing ranchers to consider cattle sell-offs as feed and water supplies dwindle, threatening herd health and livestock operations.
March 12, 2026 05:09 PM
·
Dr. David Anderson with Texas A&M University AgriLife Extension discusses how geopolitical tensions and the Middle East, along with export disruptions in the Chinese market, will shape cattle markets in the months ahead.
March 12, 2026 12:54 PM
·
A man accused of orchestrating a nationwide cattle investment fraud scheme has been arrested in California after being on the FBI’s wanted list.
March 12, 2026 11:33 AM
·
