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.
Alan Bjerga, Senior Vice President of Communications with the National Milk Producers Federation (NMPF), shares updates and resources available to dairy producers.
October 28, 2025 02:03 PM
·
FarmHER Erin Cumings shares how Nationwide’s “Every STEP Counts” helps farm and agribusiness owners prioritize safety.
October 28, 2025 01:21 PM
·
The idea of buying more beef from Argentina does not sit well with much of farm country, raising some questions from analysts and producers.
October 28, 2025 01:20 PM
·
Imported lean beef continues to play a critical role in U.S. hamburger and ground-beef production, with any added volume from Argentina serving as a supplement — not a market overhaul.
October 27, 2025 11:51 AM
·
A fast-moving series of trade signals from the White House and key partners is resetting the near-term outlook for U.S. agriculture.
October 27, 2025 11:41 AM
·
Stay alert for trade announcements—especially border reopening timelines, tariff threats, and developments in Brazil’s export flows.
October 24, 2025 01:56 PM
·
R-CALF USA CEO Bill Bullard joins Market Day Report for his insight on the USDA’s plan to strengthen the U.S. beef industry.
October 24, 2025 01:28 PM
·
Until a phased reopening is inked, plan for tighter feeder availability, firmer basis near border yards, and continued reliance on domestic and Canadian sources.
October 24, 2025 11:42 AM
·
RFD-TV Markets Expert Tony St. James breaks down the USDA’s newly unveiled plan to rebuild the US beef herd and the industry’s spectrum of responses to it.
October 23, 2025 03:06 PM
·
