Milk production in 2027 is forecast to increase from 2026, driven by higher milk per cow and a stable milk cow herd. Commercial milk exports in 2027 are forecast to be higher than in 2026 on both a fat basis and a skim-solids basis due to additional exports of cheese and whey products. Commercial imports are also forecast to increase on both a fat basis and skims-solids basis due primarily to increases in imports of cheese and milk proteins. Domestic use in 2027 is expected to increase on both a fat basis and skim-solids basis. Dairy product prices are forecast to be higher for cheese and butter, but lower for whey and nonfat dry milk (NDM) compared with 2026. As a result, the Class III price is forecast higher and the Class IV price lower in 2027. The all milk price in 2027 is forecast to be lower at $20.95 per cwt.
The 2026 milk production forecast is raised slightly from the previous month on expectations of a larger cow herd but a slower growth rate in output per cow, all based on the latest information published in the Milk Production report. The import forecast on a fat basis is raised on increased expectations for butter shipments. The skim-solids import forecast is lowered slightly primarily on lower expected imports of milk proteins. The fat-basis export forecast is increased on higher expected exports of cheese and butter. Exports on a skim-solids basis are raised on increased shipments of cheese and whey products more than offsetting lower expected shipments of NDM. The 2026 price forecasts for cheese, NDM and whey are raised compared to the previous month’s.
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