USDA Drops 2025 Milk Production Forecast

A slight drop in dairy production has led to varied prices for the month of February.  USDA reduced production by 400 million pounds based on recent Milk Production and Cattle Inventory Reports.  They showed a tighter supply of dairy heifers than expected.

World Ag Outlook Board Chair Mark Jekanowski said that the month-over-month changes on prices are notable.

“In terms of product prices, kind of mixed there. So, cheese prices we raised $0.02 per pound, reflecting pretty tight inventories, but the other main products— butter, non-fat dry milk, dry whey. We lowered butter, we reduced $0.05 per pound. Non-fat dry is down $0.04 and dry whey forecast we reduced $0.03 per pound...”

Meanwhile, Jekanowski pointed out all milk prices fell compared to the month prior.  He attributes some of this month’s price changes to the new Federal Milk Marketing Order.  That is especially true for class prices, because of changes to how they are calculated.

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