by Andrew P. Griffith, Livestock Marketing Specialist
October 31, 2025
Highlighted areas could not be updated due to government shutdown.
Milk Production
Milk production in the 24 major states during August totaled 18.8 billion pounds, up 3.3 percent from August 2024. Production per cow for August averaged 2,068 pounds. The number of milk cows was 9.08 million head, 7,000 more than July 2025. July production was revised up 0.7 percent from preliminary estimates. For milk production in the top 5 producing states, California increased 1.7% from August a year ago; Wisconsin up 2.0%; Texas up 6.0%; Idaho up 8.2%; and New York up 3.5%. Other states with large production increases were Kansas (20.4%), South Dakota (11.3%), and Georgia (8.3%). States with large production decreases were Washington (-8.1%) and Illinois (-3.7 %).
Milk Price and Utilization
The Southeast Uniform milk price for September was $22.72, down $0.83 from August and $2.29 lower than September 2024. The Appalachian Uniform milk price was $22.29 down $0.73 from August and $2.19 lower than September 2024. September’s Class III price was $17.59, up $0.35 from August, and $5.75 lower than September a year ago. The Class IV price was down $2.33 at $16.17, and $6.12 lower than September 2024. The Class I Mover price for November is $16.75, down $1.29 from October. The milk/feed ratio for August was 2.51, up 0.15 from July.
Southeast Class I utilization was 79.77%, up 3.23% from August and 0.55% higher than September a year ago. The Uniform butterfat price was $2.4945, down 31.78 cents from last month and 110.74 cents lower than September 2024. The September Class I price was $24.50. October Class I price is $23.84. Appalachian Class I utilization was 77.49%, up 4.42% from August, and 6.10% higher than September a year ago. The Uniform butterfat price was $2.4945, down 109.99 cents from last month and cents lower than September 2024. The September Class I price was $24.30.
Cheese Production and Stocks
Total cheese production in July was 1.21 billion pounds, up 2.1% from a year ago while butter production was up 9.8% to 180 million pounds. Nonfat dry milk (NDM) production was up 7.1% compared to a year ago with total production at 130 million pounds while skim milk powder (SMP) production was down 14.3% to 44.4 million pounds compared to a year ago. Total cheese stocks at the end of August were up 2% from August a year ago and down 1% from the previous month while butter stocks were down 8% from last month and down 6% from a year ago.
Cow Slaughter
Dairy cow slaughter in August was 217,400 head, down 8,400 head from July and 13,300 head less than August 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. |
|---|---|---|---|---|---|---|
| Apr 25 | 22.29 | 23.37 | 17.48 | 17.92 | 70.92 | 2.6512 |
| May 25 | 21.36 | 22.17 | 18.57 | 18.13 | 68.57 | 2.6710 |
| 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 |
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. |
|---|---|---|---|---|---|---|
| Apr 25 | 21.72 | 22.97 | 17.48 | 17.92 | 66.51 | 2.6514 |
| May 25 | 20.98 | 21.77 | 18.57 | 18.13 | 70.79 | 2.6718 |
| 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 |
What is the Market Offering for Milk to be Sold in January?
Ex: It is Oct. 31 and Jan. Class III milk futures are trading at $16.63. Local Jan. basis estimate is +$3.00.
| If January futures | = | 18.25 | 16.75 | 15.25 | |||
| and actual blend price | = | 21.25 | 19.75 | 18.25 | |||
| Sample Strategies | Realized Prices for January Milk | ||||||
| 1) Sold Futures | @ | 16.63 | 19.63 | 19.63 | 19.63 | ||
| 2) Bought Put | 15.75 | @ | 0.39 | 20.86 | 19.36 | 18.36 | |
| 3) Bought Put | 16.25 | @ | 0.58 | 20.67 | 19.17 | 18.67 | |
| 4) Bought Put | 16.75 | @ | 0.80 | 20.45 | 18.95 | 18.95 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 16.63 | |||||
| Bought Call | 17.75 | @ | 0.36 | 19.77 | 19.27 | 19.27 | |