# USDA Dairy Outlook: Milk Production Grows While Prices Ease

> USDA's latest dairy outlook projects U.S. milk production rising to 236.6 billion pounds in 2026 and 238.1 billion in 2027. Herd expansion, low culling and strong margins over feed costs support the growth. Milk component gains boosted manufacturing potential.

- Date: 2026-07-20 · published 2026-07-20T12:00:00.000Z
- Category: report · region US · magnitude medium
- Page: https://feedsoft.ai/events/18530-usda-dairy-outlook-milk-production-grows-while-prices-ease
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Growing supply is expected to push milk prices lower over the next two years, which reduces dairy-sector demand for feed.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2026-06-12 | [Growing dairy production limits milk prices in USDA’s outlook - Brownfield Ag News](https://feedsoft.ai/events/18975-growing-dairy-production-limits-milk-prices-in-usda-s-outlook-brownfield-ag-news.md) | +0.3% | -1.6% |
| MILK | 2025-09-22 | [USDA Dairy Outlook: Rising Production, Lower Prices - Dairy Producer](https://feedsoft.ai/events/23046-usda-dairy-outlook-rising-production-lower-prices-dairy-producer.md) | -0.5% | -3.8% |
| MILK | 2026-06-23 | [Higher Milk Production Forecasts Temper Dairy Price Outlook - Dairy Producer](https://feedsoft.ai/events/18807-higher-milk-production-forecasts-temper-dairy-price-outlook-dairy-producer.md) | -0.0% | -1.6% |
| MILK | 2020-04-24 | [Dairy prices fall as milk production rises](https://feedsoft.ai/events/6500-dairy-prices-fall-as-milk-production-rises.md) | -13.8% | -7.5% |
| MILK | 2026-07-25 | [USDA raises milk production estimates - Dairy Star](https://feedsoft.ai/events/18527-usda-raises-milk-production-estimates-dairy-star.md) | -0.8% | +5.4% |

## Sources

- dairyproducer.com: https://dairyproducer.com/usda-july-2026-dairy-market-outlook/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.