Monthly Dairy Comments

by Andrew P. Griffith, Livestock Marketing Specialist

June 30, 2025

Milk Production

Milk production in the 24 major states during May totaled 19.1 billion pounds, up 1.7 percent from May 2024. Production per cow for May averaged 2,125 pounds. The number of milk cows was 9.00 million head, 6,000 more than April 2025. April production was revised up 0.1 percent from preliminary estimates. For milk production in the top 5 producing states, California decreased 1.8% from May a year ago; Wisconsin down 0.1%; Texas up 8.9%; Idaho up 6.0%; and New York up 1.3%. Other states with large production increases were Kansas (15.7%), South Dakota (9.5%), and Georgia (7.9%). States with large production decreases were Illinois (-4.0 %) and Washington (-3.3%).

Milk Price and Utilization

The Southeast Uniform milk price for May was $21.36, down $0.93 from April and $0.72 lower than May 2024. The Appalachian Uniform milk price was $20.98 down $0.74 from April and $0.79 lower than May 2024. May’s Class III price was $18.57, up $1.09 from April, and $0.02 higher than May a year ago. The Class IV price was up $0.21 at $18.13, and $2.37 lower than May 2024. The Class I Mover price for July is $18.82, up $1.56 from June. The milk/feed ratio for May was 2.24, down 0.03 from April.

Southeast Class I utilization was 68.57%, down 2.35% from April and 2.37% higher than May a year ago. The Uniform butterfat price was $2.6710, up 1.98 cents from last month and 73.51 cents lower than May 2024. The May Class I price was $22.17. June Class I price is $23.06. Appalachian Class I utilization was 70.79%, up 4.28% from April, and 0.25% higher than May a year ago. The Uniform butterfat price was $2.6718, up 2.04 cents from last month and 73.75 cents lower than May 2024. The May Class I price was $21.77.

Cheese Production and Stocks

Total cheese production in April was 1.23 billion pounds, up 3.1% from a year ago while butter production was up 3.9% to 216 million pounds. Nonfat dry milk (NDM) production was down 6.1% compared to a year ago with total production at 163 million pounds while skim milk powder (SMP) production was down 20.8% to 35.5 million pounds compared to a year ago. Total cheese stocks at the end of May were down 2% from April a year ago and up 1% from the previous month while butter stocks were up 7% from last month and down 5% from a year ago.

Cow Slaughter

Dairy cow slaughter in May was 196,700 head, down 10,500 head from April and 19,300 head less than May 2024.

Southeast Federal Order Prices

MonthUniform Price $/cwt.Class I Price $/cwt.Class III Price $/cwt.Class IV Price $/cwt.Class I % UtilizationButterfat Price $/lb.
Dec 2424.1825.2318.6220.7477.593.0125
Jan 2523.7924.1820.3420.7379.732.9557
Feb 2523.9025.0720.1819.9069.652.8846
Mar 2523.1824.8218.6218.2168.732.7289
Apr 2522.2923.3717.4817.9270.922.6512
May 2521.3622.1718.5718.1368.572.6710

Appalachian Federal Order Prices

MonthUniform Price $/cwt.Class I Price $/cwt.Class III Price $/cwt.Class IV Price $/cwt.Class I % UtilizationButterfat Price $/lb.
Dec 2423.4324.8318.6220.7468.893.0003
Jan 2523.2623.7820.3420.7376.152.9557
Feb 2523.5524.6720.1819.9072.892.8855
Mar 2522.6024.4218.6218.2166.422.7210
Apr 2521.7222.9717.4817.9266.512.6514
May 2520.9821.7718.5718.1370.792.6718

What is the Market Offering for Milk to be Sold in September?

Ex: It is Jun. 30 and Sep. Class III milk futures are trading at $19.42. Local Aug. basis estimate is +$3.00.

If September futures=20.7519.2517.75
and actual blend price=23.7522.2520.75
Sample Strategies  Realized Prices for September Milk
1) Sold Futures@19.1722.1722.1722.17
2) Bought Put18.25@0.4723.2821.7820.78
3) Bought Put18.75@0.6723.0821.5821.08
4) Bought Put19.25@0.9222.8321.3321.33
5) Synthetic Put
     Sold Futures@19.17
     Bought Call20.25@0.50 22.1721.6721.67