The Latest: February - 2026
USDA Buying Food to Donate
On Thursday, USDA announced that it would spend $263 million buying food to donate to food banks and nutrition assistance programs under Section 32 of the Depression-era Agricultural Act of 1935. USDA will spend nearly half of the $148 million allocated for dairy products on butter, with another $42.5 million for Swiss and Cheddar cheese, and $30.5 million on conventional and ultra-high temperature milk.
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USDA announced that it would end the Farmers to Families Food Box program after May, squelching hopes surrounding the government spending that propelled the cheese and Class III markets to unsustainable heights in 2020.
View reportNearly all products gained ground at the CME spot market with the exception of Whey. The other spot dairy products moved decisively upward.
View reportWith milk production expected to stay strong, dairy product production will continue to be robust. This aggressive production threatens to overhang the market unless demand can demonstrate a meaningful and sustained expansion.
View reportCheese manufacturers report that demand has improved from both domestic and international sources. Even with improved demand, supply remains more than ample and inventories are growing.
View reportMilk is undeniably long and with the spring flush imminent in most parts of the country, supplies are expected to remain plentiful. Yet even as milk remains abundant, demand has also perked up, helping to keep markets in balance. Butter manufacturers report that domestic demand has been healthy while the spot whey market continued to reach new heights, setting another record this week.
View reportOver the past year, the dairy markets have exhibited extreme volatility, adjusting to drastic shifts in both supply and demand. Consumer behaviors are shifting back towards something that resembles pre-pandemic times.
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