by Andrew P. Griffith, Livestock Marketing Specialist
May 30, 2025
Milk Production
Milk production in the 24 major states during April totaled 18.6 billion pounds, up 1.6 percent from April 2024. Production per cow for April averaged 2,071 pounds. The number of milk cows was 8.98 million head, 7,000 more than March 2025. March production was up 0.1 percent from preliminary estimates. For milk production in the top 5 producing states, California decreased 1.4% from April a year ago; Wisconsin up 0.1%; Texas up 10.6%; Idaho up 4.2%; and New York up 1.4%. Other states with large production increases were Kansas (11.4%) and South Dakota (9.2%). States with large production decreases were Washington (-4.5%) and Florida (-3.7%).
Milk Price and Utilization
The Southeast Uniform milk price for April was $22.29, down $0.89 from March and $0.02 higher than April 2024. The Appalachian Uniform milk price was $21.72 down $0.88 from March and $0.08 lower than April 2024. April’s Class III price was $17.48, down $1.14 from March, and $1.98 higher than April a year ago. The Class IV price was down $0.29 at $17.92, and $2.19 lower than April 2024. The Class I Mover price for June is $17.26, down $1.11 from May. The milk/feed ratio for April was 2.27, down 0.19 from March.
Southeast Class I utilization was 70.92%, up 2.19% from March and 0.04% higher than April a year ago. The Uniform butterfat price was $2.6512, down 7.77 cents from last month and 65.54 cents lower than April 2024. The April Class I price was $23.37. May Class I price is $22.17. Appalachian Class I utilization was 66.51%, up 0.09% from March, and 2.75% higher than April a year ago. The Uniform butterfat price was $2.6514, down 6.96 cents from last month and 65.68 cents lower than April 2024. The April Class I price was $22.97.
Cheese Production and Stocks
Total cheese production in March was 1.23 billion pounds, up 1.4% from a year ago while butter production was up 8.6% to 229 million pounds. Nonfat dry milk (NDM) production was down 9.1% compared to a year ago with total production at 168 million pounds while skim milk powder (SMP) production was down 11.9% to 34.0 million pounds compared to a year ago. Total cheese stocks at the end of April were down 2% from April a year ago and up 1% from the previous month while butter stocks were up 4% from last month and down 7% from a year ago.
Cow Slaughter
Dairy cow slaughter in April was 207,200 head, down 10,700 head from March and 31,000 head less than April 2024.
Southeast Federal Order Prices
| Month | Uniform Price $/cwt. | Class I Price $/cwt. | Class III Price $/cwt. | Class IV Price $/cwt. | Class I % Utilization | Butterfat Price $/lb. |
|---|---|---|---|---|---|---|
| Nov 24 | 25.46 | 26.33 | 19.95 | 21.12 | 79.11 | 3.0707 |
| Dec 24 | 24.18 | 25.23 | 18.62 | 20.74 | 77.59 | 3.0125 |
| Jan 25 | 23.79 | 24.18 | 20.34 | 20.73 | 79.73 | 2.9557 |
| Feb 25 | 23.90 | 25.07 | 20.18 | 19.90 | 69.65 | 2.8846 |
| Mar 25 | 23.18 | 24.82 | 18.62 | 18.21 | 68.73 | 2.7289 |
| Apr 25 | 22.29 | 23.37 | 17.48 | 17.92 | 70.92 | 2.6512 |
Appalachian Federal Order Prices
| Month | Uniform Price $/cwt. | Class I Price $/cwt. | Class III Price $/cwt. | Class IV Price $/cwt. | Class I % Utilization | Butterfat Price $/lb. |
|---|---|---|---|---|---|---|
| Nov 24 | 24.72 | 25.93 | 19.95 | 21.12 | 70.89 | 3.0706 |
| Dec 24 | 23.43 | 24.83 | 18.62 | 20.74 | 68.89 | 3.0003 |
| Jan 25 | 23.26 | 23.78 | 20.34 | 20.73 | 76.15 | 2.9557 |
| Feb 25 | 23.55 | 24.67 | 20.18 | 19.90 | 72.89 | 2.8855 |
| Mar 25 | 22.60 | 24.42 | 18.62 | 18.21 | 66.42 | 2.7210 |
| Apr 25 | 21.72 | 22.97 | 17.48 | 17.92 | 66.51 | 2.6514 |
What is the Market Offering for Milk to be Sold in August?
Ex: It is May 30 and Aug. Class III milk futures are trading at $19.42. Local Aug. basis estimate is +$3.00.
| If August futures | = | 21.00 | 19.50 | 18.00 | |||
| and actual blend price | = | 24.00 | 22.50 | 21.00 | |||
| Sample Strategies | Realized Prices for August Milk | ||||||
| 1) Sold Futures | @ | 19.42 | 22.42 | 22.42 | 22.42 | ||
| 2) Bought Put | 18.50 | @ | 0.46 | 23.54 | 22.04 | 21.04 | |
| 3) Bought Put | 19.00 | @ | 0.66 | 23.34 | 21.84 | 21.34 | |
| 4) Bought Put | 19.50 | @ | 0.89 | 23.11 | 21.61 | 21.61 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 19.42 | |||||
| Bought Call | 20.50 | @ | 0.49 | 22.43 | 21.93 | 21.93 | |