More Milk Is Coming. Can Dairy Demand Keep Up?
One day shy of the USDA’s July Milk Production report, the market anticipates a drop in milk production due to heat stress, however the overall production numbers for the year exceed expectations month after month. Forecasts for the year anticipate 236.6 billion pounds of milk produced in the United States for 2026. That is 5.9 billion higher than milk produced last year. That growth is expected to continue into 2027 leaving a massive amount of supply for the market to find buyers for.
Over the last year, the market has done an outstanding job of creating demand with competitive pricing and innovation by creating new products and marketing to consumers looking for clean protein sources. Exports are high, trending over 25% higher than the first half of 2025 when comparing January through June and nearly surpassing the total export volume of 2024.
By Sarah Jungman
August 19, 2026 09:42 AM
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