Larger Dairy Herd and Rising Milk Production Shape Price Outlook Into 2027
Sep 10
1 min read
A larger U.S. dairy herd and continued growth in milk production are adding to available supplies as producers move through the second half of 2026.
USDA’s August Livestock, Dairy, and Poultry Outlook leaves its 2026 milk production forecast unchanged at 236.6 billion pounds. However, the agency lowered its all-milk price forecast as weaker butter and nonfat dry milk prices weigh on the market.
For 2027, USDA expects the dairy herd to remain near current levels while milk production edges higher. The agency now forecasts an all-milk price of $19.80 per hundredweight (cwt), down $0.05 from last month’s projection.
By Tanya Eadie
August 22, 2026
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