by Andrew P. Griffith, Livestock Marketing Specialist
September 30, 2025
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 August was $23.55, down $0.13 from July and $1.02 lower than August 2024. The Appalachian Uniform milk price was $23.02 down $0.22 from July and $0.96 lower than August 2024. August’s Class III price was $17.24, down $0.08 from July, and $3.42 lower than August a year ago. The Class IV price was down $0.39 at $18.50, and $3.08 lower than August 2024. The Class I Mover price for October is $18.04, down $0.66 from September. The milk/feed ratio for August was 2.51, up 0.15 from July.
Southeast Class I utilization was 76.54%, up 2.86% from July and 2.70% lower than August a year ago. The Uniform butterfat price was $2.8123, up 0.56 cents from last month and 78.04 cents lower than August 2024. The August Class I price was $24.73. September Class I price is $24.50. Appalachian Class I utilization was 73.07%, up 1.36% from July, and 0.08% higher than August a year ago. The Uniform butterfat price was $2.8063, down 0.43 cents from last month and 78.48 cents lower than August 2024. The August Class I price was $24.53.
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. |
|---|---|---|---|---|---|---|
| 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 |
| 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 |
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. |
|---|---|---|---|---|---|---|
| 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 |
| 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 |
What is the Market Offering for Milk to be Sold in December?
Ex: It is Sep. 30 and Dec. Class III milk futures are trading at $17.57. Local Dec. basis estimate is +$3.00.
| If December futures | = | 19.00 | 17.50 | 16.00 | |||
| and actual blend price | = | 22.00 | 20.50 | 19.00 | |||
| Sample Strategies | Realized Prices for December Milk | ||||||
| 1) Sold Futures | @ | 17.57 | 20.57 | 20.57 | 20.57 | ||
| 2) Bought Put | 16.50 | @ | 0.31 | 21.69 | 20.19 | 19.19 | |
| 3) Bought Put | 17.00 | @ | 0.51 | 21.49 | 19.99 | 19.49 | |
| 4) Bought Put | 17.50 | @ | 0.74 | 21.26 | 19.76 | 19.76 | |
| 5) Synthetic Put | |||||||
| Sold Futures | @ | 17.57 | |||||
| Bought Call | 18.50 | @ | 0.36 | 20.71 | 20.21 | 20.21 | |