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U.S. Class III milk prices have fallen sharply from their 2024 highs as oversupplied milk solids and weak cheese demand weigh on component values. Edge Dairy's Lucas Sjostrom says downstream markets lack enough outlets for current output, particularly for cheese and butter.
Weak cheese and butter demand pulls down the Class III formula, lowering milk prices and producer margins, which can cut herd-expansion and feed-buying appetite over time.
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