DAIRY MARKET REPORT VOLUME 28 | ISSUE 5
5/27/2025
OVERVIEW Yogurt, butter and American-type cheese provided bright spots in domestic commercial use during the year’s first quarter. Total U.S. dairy exports have steadily increased over the past three months, as they typically do. First quarter U.S. milk production rose 0.8% from a year earlier, due mostly to increased cow numbers; milk solids production grew by 2.1% over the same period. Mostly lower dairy product prices in April produced a drop in Class II and Class IV prices from both last month and a year ago. April Class III prices were down from a month ago up but well above a year earlier. The DMC Decision Tool is estimating that the DMC margin has already reached its lowest level for the year, $10.43/cwt, in April. Note: The tables below for commercial use, trade, and milk and dairy product production show actual quantities; only the annual percentage changes are adjusted for the 2024 leap year.
COMMERCIAL USE OF DAIRY PRODUCTS After gaining 1.3% on a leap year-adjusted basis in February, March fluid milk sales were down from last year by 1.5%, dropping first quarter fluid sales by 0.3% over Q1 2024. Yogurt and butter continue to provide bright spots in domestic commercial use, while cheese, specifically
DOMESTIC COMMERCIAL USE
American-type cheese, has newly joined this company during the first quarter. Strong leap year-adjusted growth in its skim milk solids equivalent kept growth in overall domestic milk solids use positive in the face of weaker growth in its milkfat equivalent during the quarter.
JAN-MAR 2025
JAN-MAR 2024
2024-2025 CHANGE
PERCENT CHANGE
(million pounds) Total Fluid Milk Products
10,784
10,934
-150
-0.3%
Yogurt
1,317
1,237
79
7.6%
Butter
547
533
13
3.6%
American-type Cheese
1,340
1,352
-12
0.2%
All Other Cheese
1,961
2,006
-45
-1.1%
Total Cheese
3,302
3,358
-56
-0.6%
Dry Skim Milk
162
177
-15
-7.5%
All Products (milk equiv., milkfat basis)
52,373
53,494
-1,121
-1.0%
All Products (milk equiv., skim solids basis)
45,871
45,566
305
1.8%
All Products (milk equiv., total solids basis)
47,983
48,108
-125
0.8%