DAIRY MARKET REPORT VOLUME 28 | ISSUE 3
3/ 18/2025
OVERVIEW January began this year positively for U.S. dairy exports, following a weak fourth quarter last year, rising by 0.5% from January 2024. In contrast, fluid milk sales,which in 2024 saw its first annual gain since 2009, were 0.5% lower in January than the previous January. Meanwhile, following end-of-year data revisions by USDA, a national dairy cow herd expansion would seem to be on back track with January’s preliminary estimate showing the national herd was 41,000 larger than a year earlier. The January U.S. average all-milk price rose by $0.80/cwt from December to $24.10/cwt, and the DMC January feed cost formula increased by $0.33/cwt of milk, moving the DMC margin up by $0.47/cwt of milk for the month, to $13.85/cwt. At the macroeconomic level, the closely-watched overall retail price inflation index eased slightly in February, rising by 2.8% from a year earlier. The February Consumer Price Index (CPI) for all dairy products and those for the various individual dairy products were reported below their respective high levels, many of which were reached about two years earlier.
COMMERCIAL USE OF DAIRY PRODUCTS Fluid milk sales were 0.5% lower in January than in January 2024, following last year’s first year-over-year
DOMESTIC COMMERCIAL USE
gain in 15 years. Domestic use of most other products was also lower in January, except for yogurt and butter.
NOV 2024JAN 2025
NOV 2023JAN 2024
2024-2025 CHANGE
PERCENT CHANGE
(million pounds) Total Fluid Milk Products
11,258
11,242
16
0.1%
Yogurt
1,191
1,105
87
7.9%
Butter
613
587
26
4.4%
American-type Cheese
1,343
1,392
-49
-3.5%
All Other Cheese
2,004
2,021
-17
-0.8%
Total Cheese
3,347
3,413
-66
-1.9%
Dry Skim Milk
142
190
-48
-25.1%
All Products (milk equiv., milkfat basis)
55,182
55,550
-368
-0.7%
All Products (milk equiv., skim solids basis)
45,637
45,885
-248
-0.5%
All Products (milk equiv., total solids basis)
48,741
48,992
-251
-0.5%