by Andrew P. Griffith, Livestock Marketing Specialist
January 30, 2026
Milk Production
Milk production in the 24 major states during December totaled 18.8 billion pounds, up 4.6 percent from December 2024. Production per cow for December averaged 2,060 pounds. The number of milk cows was 9.14 million head, 9,000 more than November 2025. November production was revised up 0.1 percent from preliminary estimates. For milk production in the top 5 producing states, California increased 9.6% from December a year ago; Wisconsin up 2.8%; Texas up 4.7%; Idaho up 5.6%; and New York up 3.9%. Other states with large production increases were Kansas (26.2%), South Dakota (11.4%), Oregon (8.9%) and Utah (7.4%). States with large production decreases were Washington (-6.0%) and New Mexico (-4.9%).
Milk Price and Utilization
The Southeast Uniform milk price for December was $21.89, up $1.07 from November and $2.29 lower than December 2024. The Appalachian Uniform milk price was $21.80 up $1.35 from November and $1.63 lower than December 2024. December’s Class III price was $15.86, down $1.32 from November, and $2.76 lower than December a year ago. The Class IV price was down $0.25 at $13.64, and $7.10 lower than December 2024. The Class I Mover price for February is $14.70, down $1.65 from January. The milk/feed ratio for December was 2.26, up 0.12 from November.
Southeast Class I utilization was 75.94%, down 0.05% from November and 1.65% lower than December a year ago. The Uniform butterfat price was $1.6532, down 14.43 cents from last month and 135.93 cents lower than December 2024. The December Class I price was $24.01. January Class I price is $22.15. Appalachian Class I utilization was 76.14%, down 3.31% from November, and 7.25% higher than December a year ago. The Uniform butterfat price was $1.6540, down 14.11 cents from last month and 134.63 cents lower than December 2024. The December Class I price was $23.81.
Cheese Production and Stocks
Total cheese production in November was 1.22 billion pounds, up 5.9% from a year ago while butter production was up 2.2% to 180 million pounds. Nonfat dry milk (NDM) production was down 9.8% compared to a year ago with total production at 108 million pounds while skim milk powder (SMP) production was down 9.9% to 40.5 million pounds compared to a year ago. Total cheese stocks at the end of December were up 1% from December a year ago and up 1% from the previous month while butter stocks were down 5% from last month and down 7% from a year ago.
Cow Slaughter
Dairy cow slaughter in December was 248,400 head, up 44,300 head from November and 23,900 head less than December 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. |
|---|---|---|---|---|---|---|
| Jun 25 | 22.18 | 23.06 | 18.82 | 18.30 | 66.23 | 2.6905 |
| Jul 25 | 23.68 | 24.62 | 17.32 | 18.89 | 73.68 | 2.8067 |
| Aug 25 | 23.55 | 24.73 | 17.24 | 18.50 | 76.54 | 2.8123 |
| Sep 25 | 22.72 | 24.50 | 17.59 | 16.17 | 79.77 | 2.4945 |
| Oct 25 | 21.91 | 23.84 | 16.91 | 14.30 | 79.82 | 2.1222 |
| Dec 25 | 21.89 | 24.01 | 15.86 | 13.64 | 75.94 | 1.6532 |
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. |
|---|---|---|---|---|---|---|
| Jun 25 | 21.94 | 22.86 | 18.82 | 18.30 | 67.82 | 2.6927 |
| Jul 25 | 23.24 | 24.42 | 17.32 | 18.89 | 71.71 | 2.8106 |
| Aug 25 | 23.02 | 24.53 | 17.24 | 18.50 | 73.07 | 2.8063 |
| Sep 25 | 22.29 | 24.30 | 17.59 | 16.17 | 77.49 | 2.4702 |
| Oct 25 | 21.42 | 23.64 | 16.91 | 14.30 | 76.11 | 2.0923 |
| Dec 25 | 21.80 | 23.81 | 15.86 | 13.64 | 76.14 | 1.6540 |
What is the Market Offering for Milk to be Sold in April?
Ex: It is Jan. 30 and Apr. Class III milk futures are trading at $17.68. Local Apr. basis estimate is +$3.00.
| If April futures | = | 19.25 | 17.75 | 16.25 | |||
| and actual blend price | = | 22.25 | 20.75 | 19.25 | |||
| Sample Strategies | Realized Prices for April Milk | ||||||
| 1) Sold Futures | @ | 17.68 | 20.68 | 20.68 | 20.68 | ||
| 2) Bought Put | 16.75 | @ | 0.54 | 21.71 | 20.21 | 19.21 | |
| 3) Bought Put | 17.25 | @ | 0.77 | 21.48 | 19.98 | 19.48 | |
| 4) Bought Put | 17.75 | @ | 1.05 | 21.20 | 19.70 | 19.70 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 17.68 | |||||
| Bought Call | 18.75 | @ | 0.40 | 20.78 | 20.28 | 20.28 | |