Monthly Dairy Comments

by Andrew P. Griffith, Livestock Marketing Specialist

November 28, 2025

Highlighted areas could not be updated due to government shutdown.

Milk Production

Milk production in the 24 major states during October totaled 18.7 billion pounds, up 3.9 percent from October 2024. Production per cow for October averaged 2,049 pounds. The number of milk cows was 9.14 million head, 7,000 less than September 2025. September production was revised down 0.2 percent from preliminary estimates. For milk production in the top 5 producing states, California increased 6.9% from October a year ago; Wisconsin up 1.8%; Texas up 2.9%; Idaho up 7.0%; and New York up 4.0%. Other states with large production increases were Kansas (21.2%), South Dakota (9.3%), Florida (9.1%) and Georgia (8.5%). States with large production decreases were Washington (-7.3%) and New Mexico (-4.4 %).

Milk Price and Utilization

The Southeast Uniform milk price for October was $21.91, down $0.81 from September and $3.46 lower than October 2024. The Appalachian Uniform milk price was $21.42 down $0.67 from September and $3.20 lower than October 2024. October’s Class III price was $16.91, down $0.68 from September, and $5.94 lower than October a year ago. The Class IV price was down $1.87 at $14.30, and $6.60 lower than October 2024. The Class I Mover price for December is $18.21, up $1.46 from November.The milk/feed ratio for August was 2.51, up 0.15 from July.

Southeast Class I utilization was 79.82%, up 0.05% from September and 1.49% lower than October a year ago. The Uniform butterfat price was $2.1222, down 37.23 cents from last month and 125.23 cents lower than October 2024. The October Class I price was $23.84. November Class I price is $22.55. Appalachian Class I utilization was 76.11%, down 1.38% from September, and 2.92% higher than October a year ago. The Uniform butterfat price was $2.0923, down 37.79 cents from last month and 124.23 cents lower than October 2024. The October Class I price was $23.64.

Cheese Production and Stocks

Total cheese production in August was 1.20 billion pounds, up 0.5% from a year ago while butter production was up 8.1% to 173 million pounds. Nonfat dry milk (NDM) production was up 6.8% compared to a year ago with total production at 123 million pounds while skim milk powder (SMP) production was down 13.1% to 42.3 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

MonthUniform Price $/cwt.Class I Price $/cwt.Class III Price $/cwt.Class IV Price $/cwt.Class I % UtilizationButterfat Price $/lb.
May 2521.3622.1718.5718.1368.572.6710
Jun 2522.1823.0618.8218.3066.232.6905
Jul 2523.6824.6217.3218.8973.682.8067
Aug 2523.5524.7317.2418.5076.542.8123
Sep 2522.7224.5017.5916.1779.772.4945
Oct 2521.9123.8416.9114.3079.822.1222

Appalachian Federal Order Prices

MonthUniform Price $/cwt.Class I Price $/cwt.Class III Price $/cwt.Class IV Price $/cwt.Class I % UtilizationButterfat Price $/lb.
May 2520.9821.7718.5718.1370.792.6718
Jun 2521.9422.8618.8218.3067.822.6927
Jul 2523.2424.4217.3218.8971.712.8106
Aug 2523.0224.5317.2418.5073.072.8063
Sep 2522.2924.3017.5916.1777.492.4702
Oct 2521.4223.6416.9114.3076.112.0923

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

Ex: It is Nov. 28 and Feb. Class III milk futures are trading at $15.43. Local Feb. basis estimate is +$3.00.

If February futures=17.0015.5014.00
and actual blend price=20.0018.5017.00
Sample Strategies  Realized Prices for February Milk
1) Sold Futures@15.4318.4318.4318.43
2) Bought Put14.50@0.2619.7418.2417.24
3) Bought Put15.00@0.4719.5318.0317.53
4) Bought Put15.50@0.7419.2617.7617.76
5) Synthetic Put
     Sold Futures@15.43
     Bought Call16.50@0.26 18.6718.1718.17