News

USDA projects more milk production

USDA’s latest supply and demand report shows milk production continues to rise. 2026 production estimates were raised based on faster growth in milk per cow more than offsetting lower expected cow inventory.

USDA says fat basis imports are reduced primarily on lower imports of butter. Imports on a skim-solids basis are unchanged. Exports are raised on a fat basis on higher exports of butter and cheese, but reduced on a skim-solids basis on lower casein and lactose.

Milk production for February is projected at 234.5 billion pounds, up 200-million-pounds from January. 

The fat basis supply is 254.3 billion pounds, up from 253.9 billion pounds in January.  Domestic fat basis use for February is expected to be 223.7 billion pounds, with 17.5 billion pounds sold to export markets and 13.1 billion pounds in ending stocks.

The skim-solid basis supply is projected at 249.7 billion pounds for February, with 192.7 billion pounds going to domestic use and 48 billion pounds exported, leaving 9 billion pounds in ending stocks.  That’s still 200-million pounds less than the February beginning stocks number.  Skim solid imports continue to hover at around 7 billion pounds.

Projected product prices for February are higher.  Cheese prices are up two cents from January to $1.6050 per pound.  Butter is up seven cents from last month at $1.68 per pound. Nonfat dry milk prices rose eleven cents from January to $1.3150.  Dry whey is up two cents from the previous month to $0.69 per pound.