by Andrew P. Griffith, Livestock Marketing Specialist
August 29, 2025
Milk Production
Milk production in the 24 major states during July totaled 18.8 billion pounds, up 3.5 percent from July 2024. Production per cow for July averaged 2,081 pounds. The number of milk cows was 9.04 million head, 8,000 more than June 2025. June production was revised up 0.1 percent from preliminary estimates. For milk production in the top 5 producing states, California increased 3.8% from July a year ago; Wisconsin up 0.9%; Texas up 8.4%; Idaho up 8.7%; and New York up 3.1%. Other states with large production increases were Kansas (18.6%), South Dakota (10.6%), and Georgia (9.6%). States with large production decreases were Washington (-9.2%) and Illinois (-5.0 %).
Milk Price and Utilization
The Southeast Uniform milk price for July was $23.68, up $1.50 from June and $0.57 lower than July 2024. The Appalachian Uniform milk price was $23.24 up $1.30 from June and $0.48 lower than July 2024. July’s Class III price was $17.32, down $1.50 from June, and $2.47 lower than July a year ago. The Class IV price was up $0.59 at $18.89, and $2.42 lower than July 2024. The Class I Mover price for August is $18.93, up $0.11 from July. The milk/feed ratio for July was 2.36, up 0.02 from June.
Southeast Class I utilization was 73.68%, up 7.45% from June and 1.25% lower than July a year ago. The Uniform butterfat price was $2.8067, up 21.62 cents from last month and 76.33 cents lower than July 2024. The July Class I price was $24.62. August Class I price is $24.73. Appalachian Class I utilization was 71.71%, up 3.89% from June, and 1.43% higher than July a year ago. The Uniform butterfat price was $2.8106, up 11.79 cents from last month and 76.00 cents lower than July 2024. The July Class I price was $24.42.
Cheese Production and Stocks
Total cheese production in June was 1.20 billion pounds, up 4.2% from a year ago while butter production was up 10.4% to 1.85 million pounds. Nonfat dry milk (NDM) production was up 9.6% compared to a year ago with total production at 140 million pounds while skim milk powder (SMP) production was down 21.7% to 53.9 million pounds compared to a year ago. Total cheese stocks at the end of July were up 1% from July a year ago and down slightly from the previous month while butter stocks were down 7% from last month and down 6% from a year ago.
Cow Slaughter
Dairy cow slaughter in July was 225,800 head, up 37,000 head from June and 100 head less than July 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. |
|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Aug 25 | 23.68 | 24.62 | 17.32 | 18.89 | 73.68 | 2.8067 |
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. |
|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Aug 25 | 23.24 | 24.42 | 17.32 | 18.89 | 71.71 | 2.8106 |
What is the Market Offering for Milk to be Sold in November?
Ex: It is Aug. 29 and Nov. Class III milk futures are trading at $17.57. Local Nov. basis estimate is +$3.00.
| If November futures | = | 19.00 | 17.50 | 16.00 | |||
| and actual blend price | = | 22.00 | 20.50 | 19.00 | |||
| Sample Strategies | Realized Prices for November Milk | ||||||
| 1) Sold Futures | @ | 17.57 | 20.57 | 20.57 | 20.57 | ||
| 2) Bought Put | 16.50 | @ | 0.27 | 21.73 | 20.23 | 19.23 | |
| 3) Bought Put | 17.00 | @ | 0.44 | 21.56 | 20.06 | 19.56 | |
| 4) Bought Put | 17.50 | @ | 0.66 | 21.34 | 19.84 | 19.84 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 17.57 | |||||
| Bought Call | 18.50 | @ | 0.39 | 20.68 | 20.18 | 20.18 | |