Grim Reality: Global “Wall of Milk” Weighs on Dairy Markets as Production Surges

A “wall of milk” is building across global dairy markets, and the surge in production is already showing up in price signals for U.S. farmers, says Lucas Fuess, senior dairy analyst for RaboResearch Food & Agribusiness, based in Chicago.

“It is exceptionally rare to see the growth numbers that we are experiencing right now,” Fuess says, pointing to months of near 4% year-over-year U.S. milk production growth and expectations for above-average strength into 2026. “U.S. farmers are doing everything possible to maximize that output right now, but we’re tipping the scales a little bit into an oversupplied situation, and that weighs on prices.”

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By Tyne Morgan

Updated December 04, 2025 06:52 AM