Butter Prices Expected To Move Up, While Milk Holds

While the USDA is forecasting domestic milk production to increase this year and in 2026 as well, consumer demand is also expected to move up.

“We still continue to see very strong export competitiveness for US dairy products, a lot of strength in both butter and cheese," said World Ag Outlook Board Chairman Mark Jekanowski. "So fat basis exports as well as non-fat dry milk and whey. So, supporting those skim solid basis exports.”

Butter Prices Look To Move Up, While Milk Is Expected To Hold

When it comes to dairy product prices, Jekanowski said.

“Just a four-cent reduction in our butter price forecast for 2025, this month down to $2.52 per pound, but that's coming down from a relatively high price," Jekanowski noted.  "And we anticipate a rebound in the strengthening of the butter price into 2026 where we raised our butter price forecast by two cents per pound to $2.55 per pound. Similarly, nonfat dry milk. We made a small adjustment increased our 2025. Price forecast by a penny to $1.27 per pound and for 2026 we pulled that up by two cents to $1.25 per pound.”

Jekanowski added when it comes to the all-milk prices, not a lot of movement there.  No changes were made by USDA to the all-milk price forecast for 2025, holding at $22 cwt, but for 2026, USDA raised the price forecast by 25 cents cwt to $21.90 cwt.

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