Milk Surplus Pressures Prices as 2026 Begins

ZISK
2 days ago
1 min read

LUBBOCK, Texas (RFD NEWS) — Milk prices are entering 2026 under heavy pressure as global and domestic production continues to outpace demand, raising concerns about how quickly the market can work through a growing surplus.

According to analysis from Ben Laine of Terrain, the all-milk price fell to $20 per hundredweight in October, more than 20 percent below a year earlier.

U.S. milk production has expanded sharply, with output up more than 4 percent year over year late in 2025, driven by the largest milk cow herd in decades and higher per-cow productivity. At the same time, milk output has increased across the European Union and New Zealand, flooding global markets and intensifying price competition for exports.

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