Milk prices grow faster than feed costs
- ZISK APP
- Jul 10
- 1 min read
Milk revenue over feed cost is at its highest margin since last September at $10.62 per hundredweight (cwt.), according to data from the Dairy Margin Coverage (DMC) program. Although feed costs were climbing due to conflict in the Middle East, the All-Milk price has made significant gains. This is especially true in the Class IV space, since the lows at the beginning of the year with strong milk and milk component production outpacing the rise in feed costs.
The breakdown of improved margins
Climbing nearly $5 per cwt., the All-Milk price moved from a January low of $17.50 to $21.30 in May. That represents the highest prices since this time last year. On the flip side, corn and alfalfa hay prices are also at the highest levels since May 2025 at $4.48 per bushel and $247 per ton, respectively. What’s most interesting is that soybean meal (SBM) costs at $339 per ton haven’t been this pricey since October 2024 – the most recent occasion of SBM surpassing $340 per ton.
Abbi Grove
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