by Andrew P. Griffith, Livestock Marketing Specialist
April 30, 2025
Milk Production
Milk production in the 24 major states during March totaled 19.0 billion pounds, up 1.0 percent from March 2024. Production per cow for March averaged 2,125 pounds. The number of milk cows was 8.96 million head, 9,000 more than February 2025. February production was up 0.2 percent from preliminary estimates. For milk production in the top 5 producing states, California decreased 2.1% from March a year ago; Wisconsin up 0.1%; Texas up 9.4%; Idaho up 4.3%; and New York up 1.3%. Other states with large production increases were South Dakota (5.1%) and Kansas (4.4%). States with large production decreases were Washington (-4.3%) and Florida (-3.6%).
Milk Price and Utilization
The Southeast Uniform milk price for March was $23.18, down $0.72 from February and $1.11 higher than March 2024. The Appalachian Uniform milk price was $22.60 down $0.95 from February and $1.00 higher than March 2024. March’s Class III price was $18.62, down $1.56 from February, and $2.28 higher than March a year ago. The Class IV price was down $1.69 at $18.21, and $1.88 lower than March 2024. The Class I Mover price for May is $18.37, down $1.20 from April. The milk/feed ratio for March was 2.46, down 0.22 from February.
Southeast Class I utilization was 68.73%, down 0.92% from February and 3.22% higher than March a year ago. The Uniform butterfat price was $2.7289, down 15.57 cents from last month and 48.10 cents lower than March 2024. The March Class I price was $24.82. April Class I price is $23.37. Appalachian Class I utilization was 66.42%, down 6.47% from February, and 0.69% higher than March a year ago. The Uniform butterfat price was $2.7210, down 16.45 cents from last month and 49.10 cents lower than March 2024. The March Class I price was $24.42.
Cheese Production and Stocks
Total cheese production in February was 1.11 billion pounds, down 2.2% from a year ago while butter production was up 2.6% to 203 million pounds. Nonfat dry milk (NDM) production was down 0.3% compared to a year ago with total production at 147 million pounds while skim milk powder (SMP) production was down 15.1% to 30.8 million pounds compared to a year ago. Total cheese stocks at the end of March were down 4% from March a year ago and up 1% from the previous month while butter stocks were up 6% from last month and up 4% from a year ago.
Cow Slaughter
Dairy cow slaughter in March was 217,900 head, up 900 head from February and 26,700 head less than March 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. |
|---|---|---|---|---|---|---|
| Oct 24 | 25.37 | 26.97 | 22.85 | 20.90 | 81.31 | 3.374 |
| Nov 24 | 25.46 | 26.33 | 19.95 | 21.12 | 79.11 | 3.0707 |
| Dec 24 | 24.18 | 25.23 | 18.62 | 20.74 | 77.59 | 3.0125 |
| Jan 25 | 23.79 | 24.18 | 20.34 | 20.73 | 79.73 | 2.9557 |
| 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 |
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. |
|---|---|---|---|---|---|---|
| Oct 24 | 24.62 | 26.57 | 22.85 | 20.90 | 73.19 | 3.3346 |
| Nov 24 | 24.72 | 25.93 | 19.95 | 21.12 | 70.89 | 3.0706 |
| Dec 24 | 23.43 | 24.83 | 18.62 | 20.74 | 68.89 | 3.0003 |
| Jan 25 | 23.26 | 23.78 | 20.34 | 20.73 | 76.15 | 2.9557 |
| 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 |
What is the Market Offering for Milk to be Sold in July?
Ex: It is Apr. 30 and July Class III milk futures are trading at $18.20. Local July basis estimate is +$3.00.
| If July futures | = | 19.75 | 18.25 | 16.75 | |||
| and actual blend price | = | 22.75 | 21.25 | 19.75 | |||
| Sample Strategies | Realized Prices for July Milk | ||||||
| 1) Sold Futures | @ | 18.20 | 21.20 | 21.20 | 21.20 | ||
| 2) Bought Put | 17.25 | @ | 0.40 | 22.35 | 20.85 | 19.85 | |
| 3) Bought Put | 17.75 | @ | 0.59 | 22.16 | 20.66 | 20.16 | |
| 4) Bought Put | 18.25 | @ | 0.82 | 21.93 | 20.43 | 20.43 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 18.20 | |||||
| Bought Call | 19.25 | @ | 0.45 | 21.25 | 20.75 | 20.75 | |