Milk production is still strong, up 4.2% overall, with milkfat production up 5.6% year-over-year

Several signs of particularly strong domestic protein demand shone through in recently released November data: commercial disappearance of all products on a skim solids basis (which includes protein) rose 4.8% September–November 2025 over a year prior; cheese saw an increase

in domestic use of 2% after several months of declines; and stocks of whey protein concentrate fell 16% as demand outpaces supply. Exports also rose, with butter exports nearly tripling (+199%), and American-type cheeses doubling (+119%). However, DMC margins fell to $9.42/cwt, just under the $9.50/cwt maximum coverage level.

The Consumer Price Index eased month-over-month to 2.4% annually in January 2026, from 2.7% in December 2025, signaling cooling inflation. Dairy products continue to give consumers a break from inflation at the grocery store, with prices for almost all products falling since early 2025, exception for cheddar cheese.

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