After a year of weak performance, global and U.S. milk prices may finally be poised for recovery as tightening herd dynamics meet expanding processing capacity. According to Bryan Doherty of Total Farm Marketing, increased dairy efficiency, herd expansion, and beef crossbreeding have kept downward pressure on milk futures throughout 2025. Yet a limited supply of replacement heifers and the culling of older cows could soon reverse that trend. With more than $10 billion being invested in dairy plant upgrades and new facilities worldwide, Doherty sees potential for milk futures to reach $20 per hundredweight by late 2026 or early 2027 if demand strengthens faster than supply can respond.

Producers, however, are urged to balance optimism with strategic risk management. Doherty notes that low feed costs currently offer an opportunity to lock in margins, but warns that large global grain crops may not persist. As milk prices rise, he cautions against overconfidence: “High prices cure high prices.” A disciplined marketing strategy—hedging, forward contracting, and incremental sales—remains essential to navigate volatile markets and protect profits during what could be a multi-year transition toward tighter global dairy supplies.

Link:
https://www.agriculture.com/will-milk-prices-rebound-in-2026-as-dairy-supply-tightens-11843491