Growing Milk Supplies Fuel a Bearish Outlook for Dairy
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Each week we focus on the factors that could become a story to support dairy markets to higher prices, highlighting the small wins or the what if stories. When writing articles, it is a lot easier to put a spotlight on the things to look forward to rather than a tough look at the reasons the market has for trading at the lower prices we see today.
The first and most obvious reason for lower prices is the availability of product in the United States. Dairy farmers have done an excellent job of producing not only gallons of milk but a high concentration of cream to produce the products that bring so much value to the dairy industry.
On Monday, the USDA released the monthly Milk Production Report which showed May milk production was up another 2.4 percent from last year in the top 24 major states, totaling 19.8 billion pounds. Per cow, that is an average of 2,143 pounds of milk per cow, 9 pounds more than May 2025. The number of cows has also increased year over year with a total of 9.23 million head, 182,000 head more than May 2025 also for the top 24 major states.
By Sarah Jungman
June 24, 2026 09:29 AM
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