Lower Milk Production Expected In 2026, 2027

USDA is expecting lower milk production this year and into next, that, according to World Agricultural Outlook Board Chair Mark Jekanowski, is due to lower milk per cow as well as relatively steady inventories in both 2026 and 2027.  When taking a deeper look at this month’s supply and demand estimate.

“Continuing to see some pretty strong U.S. consumer demand for butter, especially from Europe, continuing to pull that butter into the U.S. market," Jekanowski said.  "Exports we lowered for both 2026 and 2027, based on a recent slower pace of butter, cheese and other fat basis export. For 2027, we reduced our skim solids basis export forecast, and that's largely driven by lower expected exports of whey.”

Jekanowski added the all-milk price forecast for this year remains unchanged from September, yet was adjusted up, now at $20.45 per cwt.

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