Here are the dairy-related headlines as we start the last week of July 2025:
- DFA, Select Milk Producers settle milk price-fixing lawsuit
- U.S. dairy industry praises Indonesia trade agreement
- New study: Genetic selection with DWP$ supports measurable productivity gains
- NMPF: U.S. dairy sees strong growth at home amid challenging trade conditions
- U.S. cattle inventory reported at 94.2 million head
- NAIDC elects new leadership
- USDA reorganization announced
DFA, Select Milk Producers settle milk price-fixing lawsuit
As reported by Reuters, two dairy farm cooperatives have agreed to pay a combined $34 million to resolve a proposed class action accusing them of conspiring to fix milk prices in Texas, New Mexico and other parts of the southwestern U.S.
In the preliminary settlement filed last week, Dairy Farmers of America will pay $24.5 million and Select Milk Producers agreed to pay $9.9 million.
Multiple dairy farmers in New Mexico who filed the class action complaint in 2022 alleged the organizations conspired to drive down prices for raw milk in the Southwest since 2015.
The cooperatives denied any wrongdoing but settled due to escalating costs and ongoing disruption.
U.S. dairy industry praises Indonesia trade agreement
The U.S. Dairy Export Council (USDEC), the National Milk Producers Federation (NMPF) and the Consortium for Common Food Names (CCFN) applauded the recent announcement of a new trade framework between the U.S. and Indonesia that eliminates tariffs on the vast majority of U.S. exports and contains pledges to remove longstanding non-tariff barriers affecting American dairy products.
“This looks like it will be a significant win for U.S. dairy. We commend the Trump administration for securing an agreement that should deliver real benefits for our dairy farmers,” said Gregg Doud, president and CEO of NMPF. “We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets. NMPF looks forward to reviewing the details of the agreement and working with the administration to ensure Indonesia upholds its end of the bargain.”
As outlined in a White House factsheet, Indonesia will eliminate tariffs on approximately 99% of U.S. exports; recognize U.S. regulatory oversight, including by listing all U.S. dairy facilities and accepting certificates issued by U.S. regulatory authorities; and commit to implement a fair and transparent process for handling geographical indications (GIs) to ensure common cheese names are respected.
“Yesterday’s announcement is an important step forward in advancing opportunities for U.S. dairy exporters. This deal is poised to strengthen our long-term partnership with Indonesia while giving U.S. dairy companies a better shot at competing fairly,” said Krysta Harden, president and CEO of USDEC. “While verification that Indonesia honors its commitments will be necessary, the removal of both tariff and non-tariff barriers is precisely what our industry needs to create new momentum for U.S. dairy exports and deeper collaboration with a key Southeast Asian partner.”
The U.S. exported $246 million in milk powders, whey products, cheese and other dairy ingredients to Indonesia in 2024, making it the seventh-largest U.S. dairy export destination. The agreement complements ongoing work by NMPF and USDEC to support integration of school milk into Indonesia’s new Free Nutritious Meals program and foster greater collaboration on trade.
NMPF, USDEC and CCFN also welcomed the news that agreements had been struck last week with the Philippines and Japan, with details forthcoming.
New study: Genetic selection with DWP$ supports measurable productivity gains
A newly published study from Zoetis and Dairy Management Inc. (DMI) provides compelling evidence that genetic selection using the Dairy Wellness Profit Index (DWP$) can deliver measurable productivity gains for U.S. dairy producers. The peer-reviewed research, published in the Journal of Dairy Science, demonstrates that selecting for higher DWP$ not only can improve herd health and longevity but can also significantly reduce methane intensity.
The study analyzed 11 commercial dairy herds across diverse U.S. regions, comparing the top and bottom quartiles based on DWP$ rankings. The results showed that cows in the top quartile produced:
- 12.9% lower methane intensity
- 9.5% lower manure nitrogen intensity
- 7.3% lower phosphorus intensity
- 8% lower degradable volatile solids intensity
- 18.1% lower herd turnover, reducing emissions from replacement heifers
These findings underscore the role of genetic selection as a strategy for improving efficiency in dairy production.
NMPF: U.S. dairy sees strong growth at home amid challenging trade conditions
Overall domestic use of dairy has shown good growth in recent months, while dairy exports continue to face headwinds, with bright spots for butter and cheese, according to a report from the National Milk Producers Federation (NMPF).
Summarizing dairy markets in the July 2025 Dairy Management Inc./NMPF Dairy Market Report, domestic commercial use of total milk solids grew by 2.2% from a year ago during March-May. U.S. exports of cheddar cheese and total American-types grew by 19% during the period. Butter exports were up by 127%.
U.S. milk production is fully in an expansion phase this year, following an unusual four-year period of stable production. Milk solids composition of raw milk continues to grow, together providing adequate supplies for the rapidly expanding cheddar cheese production, which increased by almost 10% from a year earlier in May.
For more information on commercial use, dairy trade, milk production, product inventories, prices and margins, view the July 2025 Dairy Market Report.
U.S. cattle inventory reported at 94.2 million head
There were 94.2 million head of cattle and calves on U.S. farms as of July 1, 2025, according to the Cattle report published by the USDA’s National Agricultural Statistics Service (NASS). This is the first July cattle inventory report since July 2023.
Other key findings in the report were:
- Of the 94.2 million head inventory, all cows and heifers that have calved totaled 38.1 million.
- There are 28.7 million beef cows in the U.S.
- The number of milk cows in the U.S. is 9.45 million.
- U.S. calf crop was estimated at 33.1 million head.
- All cattle on feed were at 13 million head.
To obtain an accurate measurement of the current state of the U.S. cattle industry, NASS surveyed over 17,900 operators across the nation during the first half of July. Surveyed producers were asked to report their cattle inventories as of July 1, 2025, and calf crop for the entire year of 2025 by internet, mail or telephone.
NAIDC elects new leadership
The North American Intercollegiate Dairy Challenge (NAIDC) recently elected new leadership, including four new board members and the 2025-26 executive committee.
In its 23-year history, Dairy Challenge has evolved significantly to meet the ever-changing needs of the dairy industry. The program originally began in 2002 with 56 students from 13 colleges competing in one national event. Today, there are more than 500 dairy students participating annually throughout the national competition and four regional events. The volunteer board of directors represents the many university professionals, dairy producers and industry sponsors who contribute to these opportunities.
Newly elected to the 15-person NAIDC board of directors include:
- Lauren Mayo, assistant professor of reproductive physiology at North Carolina A&T State University
- Linda Parreira, relationship manager with AgWest Farm Credit in California
- Doug DeGroff, Progressive Dairy Solutions in California
- Elizabeth Eckelkamp, assistant professor of animal science and an extension specialist for the University of Tennessee
The NAIDC executive committee includes:
- Chair: Jeffrey Elliott, Balchem, Amarillo, Texas
- Vice Chair: Ted Halbach, University of Wisconsin – Madison, Madison, Wisconsin
- Associate Vice Chair: Gail Carpenter, Iowa State University, Ames, Iowa
- Finance Chair: Megan Mouw, Elanco Animal Health, Fresno, California
- Promotions and Engagement Chair: Erin Spangler, Riverview LLP, Morris, Minnesota
- Program Committee Chair: Trevor DeVries, University of Guelph, Guelph, Ontario, Canada
USDA reorganization announced
U.S. Secretary of Agriculture Brooke L. Rollins announced the reorganization of the USDA, refocusing its core operations to better align with its founding mission of supporting American farming, ranching and forestry.
Over the last four years, the USDA’s workforce grew by 8%, and employees’ salaries increased by 14.5% – including hiring thousands of employees with no sustainable way to pay them. This all occurred without any tangible increase in service to the USDA’s core constituencies across the agricultural sector. The USDA’s footprint in the National Capital Region (NCR) is underutilized and redundant, plagued by rampant overspending and decades of mismanagement and costly deferred maintenance.
All critical functions of the USDA will continue uninterrupted. Earlier this year, Rollins issued a Secretarial Memorandum exempting National Security and Public Safety positions from the federal hiring freeze. These 52 position classifications carry out functions that are critical to the safety and security of the American people, our national forests and the inspection and safety of the nation’s agriculture and food supply system. These positions will not be eliminated. However, employees may be subject to relocation.
The reorganization consists of four pillars:
- Ensure the size of the USDA’s workforce aligns with available financial resources and agricultural priorities
- Bring the USDA closer to its customers
- Eliminate management layers and bureaucracy
- Consolidate redundant support functions
To bring the USDA closer to the people it serves while also providing a more affordable cost of living for USDA employees, the USDA has developed a phased plan to relocate much of its agency headquarters and NCR staff out of the Washington, D.C. area to five hub locations in Raleigh, North Carolina; Kansas City, Missouri; Indianapolis, Indiana; Fort Collins, Colorado; and Salt Lake City, Utah.
The department currently has approximately 4,600 employees within the NCR. Washington, D.C. will still hold functions for every mission area of the USDA at the conclusion of this reorganization, but the USDA expects no more than 2,000 employees will remain in the NCR.
To make certain the USDA can afford its workforce, this reorganization is another step of the department’s process of reducing its workforce. Much of this reduction was through voluntary retirements and the Deferred Retirement Program (DRP), a completely voluntary tool. As of July 24, 15,364 individuals voluntarily elected deferred resignation.
