WASHINGTON, D.C. (RFD NEWS) — U.S. dairy production expanded sharply in 2025 and is expected to remain strong in 2026, as herd growth, productivity gains, and export demand continue shaping the sector outlook.
USDA reports the 2025 dairy herd averaged nearly 9.5 million head — the largest since the early 1990s — while milk per cow averaged 24,391 pounds, up about 1.2% year over year. Total milk production rose 2.8%, the strongest annual gain since 2006, supported by reduced culling and stronger beef-on-dairy incentives.
Operationally, milk components increased alongside total output, with milk-fat production up 4.8% and skim-solids up 3.3%. Expanded processing capacity in Idaho, Texas, Kansas, South Dakota, Michigan, and New York supported herd growth and higher throughput across the supply chain.
Prices were mixed. The 2025 all-milk price averaged $21.17 per cwt, down from 2024, though strong demand supported exports of butter and cheese at record levels. Domestic wholesale prices generally softened, improving global competitiveness for U.S. products.
Regionally, herd expansion remained concentrated in western and central dairy states, while some eastern regions posted declines tied to shifting margins and costs.
Looking ahead, USDA forecasts 2026 milk production at 234.7 billion pounds, with rising exports expected to tighten domestic supplies and support prices.
