DAIRY MARKET REPORT VOLUME 28 | ISSUE 4
4/ 18/2025
OVERVIEW Rising milk production, together with the current climate of general economic uncertainty, is pressuring milk prices, although margins remain relatively high. February fluid milk sales were 1.3% higher than a year earlier when adjusted for leap year, while revised January numbers from USDA show the national milk cow herd was 66,000 head larger than in January 2024. Preliminary February numbers showed an annual gain of 62,000 head and a leap year-adjusted 1% increase U.S. milk production. The four monthly NDPSR dairy product survey prices, and consequently the Class III and Class IV prices, were all lower in March from a month earlier. The Consumer Price Index (CPI) for all items set a new record in March, as it usually does, but it was just 2.4% higher than a year earlier, indicating a relative cooling of overall retail price inflation by that common yardstick. The March CPIs for most of the key dairy products reported stayed measurably below the high levels they attained in recent years. The U.S. average all-milk price dropped by $0.50/cwt from January to $23.60/cwt in February, and the Dairy Margin Coverage margin dropped by $0.73/cwt, to $13.12/cwt. Note: The tables below for commercial use, trade, and milk and dairy product production show actual quantities; only the percentage changes are adjusted for leap year.
COMMERCIAL USE OF DAIRY PRODUCTS February’s fluid milk sales gains were complemented by yogurt and butter sales that continued to stand out for annual growth during December-February. There was
DOMESTIC COMMERCIAL USE
a relatively large difference in the annual growth rates of total domestic commercial use, when measured on a milkfat, as opposed to a skim solids basis.
DEC 2024FEB 2025
DEC 2023FEB 2024
2024-2025 CHANGE
PERCENT CHANGE
(million pounds) Total Fluid Milk Products
10,985
10,986
-1
1.1%
Yogurt
1,227
1,165
62
6.5%
Butter
546
544
2
1.5%
American-type Cheese
1,327
1,367
-41
-1.9%
All Other Cheese
1,955
1,978
-22
0.0%
Total Cheese
3,282
3,345
-63
-0.8%