# USDA Dairy Outlook: Rising Production, Lower Prices - Dairy Producer

> USDA's Economic Research Service Livestock, Dairy, and Poultry Outlook forecasts 2025 US milk output at 230 billion pounds and 2026 at 231.3 billion pounds, with a larger herd and higher yields. Class III is forecast at $18.20 and the all-milk price at $21.35 for 2025, with a further decline to $20.40 in 2026. Strong butter and cheese exports are expected to continue.

- Date: 2025-09-22 · published 2025-09-22T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/23046-usda-dairy-outlook-rising-production-lower-prices-dairy-producer
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Rising milk supply with softer dairy product prices suggests continued weakness in farm milk values. Strong export demand for butter and cheese provides only partial offset.

## Read by commodity

- MILK: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| MILK | 2026-07-20 | [USDA Dairy Outlook: Milk Production Grows While Prices Ease](https://feedsoft.ai/events/18530-usda-dairy-outlook-milk-production-grows-while-prices-ease.md) | +0.3% | +5.1% |
| 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 | 2025-03-13 | [USDA Lowers 2025 Dairy Product, Milk Price Forecasts, Also Reduces Milk Production Forecast](https://feedsoft.ai/events/25582-usda-lowers-2025-dairy-product-milk-price-forecasts-also-reduces-milk.md) | -0.5% | -7.2% |
| MILK | 2024-05-21 | [Market Outlook - Dairy Producer](https://feedsoft.ai/events/30249-market-outlook-dairy-producer.md) | -0.9% | +6.1% |
| 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% |

## Sources

- dairyproducer.com: https://www.dairyproducer.com/usda-dairy-outlook-2025-production-prices/

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