USDA Raises 2026 Milk and Cheese Price Forecasts
The U.S. Department of Agriculture (USDA) has increased its 2026 forecasts for milk and cheese prices, supported by strong cheese and whey markets and steady domestic demand.
The U.S. Department of Agriculture (USDA) has raised its 2026 price forecasts for milk and cheese. The updated World Agricultural Outlook Board report indicates that strong whey markets and stable domestic cheese demand are supporting the upward revisions.
The Class III milk price forecast was lifted to $17.00 per hundredweight, an increase from the April estimate. The Class IV forecast also moved higher, reaching $19.95 per hundredweight, aided by firm nonfat dry milk prices. The all-milk price forecast is now projected at $21.25 per hundredweight.
Looking ahead to next year, the outlook is more mixed. Cheese prices are expected to rise modestly, by approximately $0.07 per pound year-over-year, and butter prices are also projected to increase. Conversely, whey and nonfat dry milk prices are anticipated to soften. The forecast for all-milk prices next year is $20.95 per hundredweight, slightly below this year's level.
On the supply side, the U.S. dairy herd remains stable, standing about 200,000 head larger than year-earlier levels. Production per cow is also expected to increase. The combination of more cows and higher output per animal is projected to maintain growth in milk supply and could temper further price increases for cheese and dairy ingredients.