The Latest: November - 2025
U.S. Dairy Herd is Likely to Continue to Grow
Producers who had put off expansions when interest rates first climbed in 2022 eventually moved forward with their plans, and many are just now putting cattle into new heifer barns and milk parlors after completing the multi-year permitting, financing, and construction process. Meanwhile, in New York and throughout the heartland, dairy producers jumped at the opportunity to supply new dairy processing facilities. Based on the timing of new processing, the U.S. dairy herd is likely to continue to grow.
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With a sense of normalcy restored, and the spring flush rapidly approaching, milk is still plentiful and has resulted in copious dairy product production.
View reportMany plants are keeping busy schedules as they attempt to compensate for last week’s closures, while displaced spot loads of milk and cream continue to search for homes.
View reportThough it will take some time for the impacts of the weather to become fully appreciated, a reduction in milk production and increase in culling is likely in the coming weeks.
View reportInventories for most dairy products remain heavier than typical for this time of year. Nevertheless, the situation is evolving and tighter markets could be on the horizon.
View reportPrices fluctuate as new market information collides with the realities of supply and demand. Reports indicate that milk production continues to exceed prior year levels and is growing seasonally as spring approaches.
View reportMilk production growth was strong across most of the United States in December, with the West and the Midwest posting particularly convincing figures. A dramatic expansion in the national dairy herd drove much of the increase.
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