Milk Prices Expected To Increase in ‘26, Dip in ‘27

USDA is expecting domestic dairy production to increase this year as well as next.

“For 2026, we raised our production forecast by 100 million pounds," said World Agricultural Outlook Board Chair Mark Jekanowski.  "And for 2027, we're looking at a year over year increase currently forecast at just about 600 million pounds up from this year.”

Price Forecast Is Mixed

When you add to that, export demand for U.S. milk products, what does that mean for May’s price forecast for milk products and classes in 2026 and 2027?

“Our cheese price for 2026 held steady this month, but our butter price did decline," Jekanowski added.  "We'd lowered our forecast by about 9 cents per pound, which I think is just going to make us even more competitive in those markets overseas.”

All class and all milk price forecast for this year rose month-over-month.  However, Class IV and all milk price forecast were lowered for 2027. 

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