Abundant milk production is placing downward pressure on global dairy prices, with analysts warning that expanding supplies could keep markets bearish in the months ahead. According to the latest USDA Milk Production Report, May 2026 milk production in the top 24 U.S. dairy states rose 2.4% year-on-year to 19.8 billion pounds, while average production reached 2,143 pounds per cow, an increase of 9 pounds compared with May 2025.
The U.S. dairy herd also expanded to 9.23 million cows, up 182,000 head from a year earlier. Analysts note that higher cow numbers, improved milk components, and continued strong cream production are increasing the availability of butter, cheese, and other dairy products, adding pressure to commodity prices despite resilient demand.
While elevated beef and replacement cattle prices continue to influence herd management decisions, the sustained increase in milk output is expected to remain the dominant factor shaping dairy market sentiment. Industry observers say price recovery will likely depend on either slower milk production growth or stronger domestic and export demand to rebalance the market. (dairyherd.com)
Source: Dairynews7x7 26 June, 2026 Read full story here
#GlobalDairy #MilkProduction #DairyMarkets #DairyPrices #USDairy #MilkSupply #DairyNews