In dairy-related news at the end of August 2025:
- CoBank: Dairy heifer inventories to shrink further before rebounding in 2027
- Checkoff launches innovation contest for students
- NMPF: Dairy exports surge in June, dairy product stocks hold steady
- World Dairy Expo announces new trade show booth awards
- Dairy MAX names Jennie McDowell new CEO
CoBank: Dairy heifer inventories to shrink further before rebounding in 2027
The U.S. dairy industry is facing a potential shortage of its most important resource – milk cows. The number of replacement heifers available to enter the dairy herd as milk producing cows has already fallen to a 20-year low. Based on new CoBank research, replacements could fall even further over the next two years before a recovery begins in 2027. These declining heifer inventories could limit growth in the milk supply, a looming concern for dairy processors with expansion plans underway.
The decline in dairy heifers over the last several years is closely tied to beef and dairy market dynamics. Tight cattle supplies and record-high prices for beef calves prompted many dairy farmers to produce more calves destined for beef feedlots and fewer to milk barns. At the onset of this trend, raising dairy heifers to enter the milk cow herd was a money-losing proposition due to extremely low heifer values and high raising costs. While the economics have shifted and the shortage of replacement dairy heifers has sent values soaring, replenishing the pipeline of heifers available to enter the milking herd is a three-plus year proposition.
According to a new report from CoBank’s Knowledge Exchange, the national dairy heifer shortage could persist and grow deeper in the next two years. Based on CoBank’s predictive modeling, heifer inventories will shrink by an estimated 800,000 head over the next two years before beginning to rebound in 2027. In the meantime, dairy heifer prices have reached record highs and could climb well above $3,000 per head.
“The U.S. dairy industry stands at a unique inflection point,” said Corey Geiger, lead dairy economist with CoBank. “Beef sales are contributing a larger share of dairy farm profitability with each passing year, and the market for beef-on-dairy calves shows no signs of slowing down. In order to maintain sufficient dairy cow numbers and milk production in the near term, dairy farmers will need to put the brakes on dairy cow culling. And that could be difficult given how much they’ve already pulled back over the past two years.”
As the supply of dairy heifers has dwindled and their value has climbed, dairy farmers are culling fewer cows to keep the milk flowing. They have also made significant changes in semen purchases to help remedy the shortage of replacement heifers by purchasing more gender-sorted units to create more dairy heifer calves. But rebuilding the supply will take time.
Checkoff launches innovation contest for students
Dairy Management Inc. (DMI) is now accepting entries for its 2026 New Product Competition, inviting undergraduate and graduate students across the U.S. to develop innovative dairy-based products that meet today’s consumer demands for bone and muscle health and weight management.
This annual contest challenges students to create forward-thinking products that showcase the power and versatility of dairy in promoting health and wellness. The deadline for entries is Jan. 12.
As consumers increasingly seek functional foods to support active and healthy lifestyles, dairy’s nutrient-rich profile presents a major opportunity. The competition encourages students to tap into current industry and consumer insights, aiming to bring fresh dairy-based concepts to market.
Products should target one or more of the following benefits:
- Bone health
- Muscle health
- Weight management
“This competition is about more than innovation – it’s about preparing the next generation of food and dairy leaders to respond to evolving consumer needs with dairy at the center,” said Dr. Rohit Kapoor, vice president of product research at DMI.
Finalists will have their entries evaluated by a panel of industry experts and will be recognized at the 2026 American Dairy Science Association Annual Meeting, June 21-24, in Milwaukee, Wisconsin.
Cash prizes will be awarded, including:
- Platinum Dairy Innovator Award – $10,000 (first place)
- Gold Dairy Innovator Award – $7,000 (second place)
- Silver Dairy Innovator Award – $4,000 (third place)
- Dairy Innovator Awards – $2,000 each (for three additional teams completing Phase 2)
To learn more about product criteria and marketplace insights, view the 2026 Challenge: Consumer and Marketplace Insights.
NMPF: Dairy exports surge in June, dairy product stocks hold steady
Dairy exports surged in June, reaching 18.7% of domestic milk solids production – the highest levels since 2022. Meanwhile, stocks of major dairy products held steady from May to June, according to a report from the National Milk Producers Federation (NMPF).
Summarizing dairy markets in the August 2025 Dairy Management Inc./NMPF Dairy Market Report, U.S. fluid milk sales rose 0.5% from a year earlier in June, while domestic yogurt consumption jumped 12.2%. Overall domestic commercial use of milk solids in all dairy products increased 3% year over year. Meanwhile, exports accounted for 18.7% of domestic milk solids production, a sharp rise compared with recent levels.
U.S. milk production growth accelerated in the second quarter, with milk solids composition also trending higher. Despite this, stocks of major dairy products held steady from May to June, as did the national average all-milk price. The Dairy Margin Coverage (DMC) margin improved by $0.70 per hundredweight (cwt), supported by lower feed costs.
At retail, dairy prices have seen little change over the past three years, even as overall consumer prices including food and beverages have climbed at least 9% since peaking in 2022.
For more information on commercial use, dairy trade, milk production, product inventories, prices and margins, view the August 2025 Dairy Market Report.
World Dairy Expo announces new trade show booth awards
World Dairy Expo’s (WDE) trade show is an opportunity for dairy-related companies to showcase cutting-edge technology and the latest dairy equipment. Honored as One of the Top 100 Trade Shows of 2024, the WDE trade show serves as the meeting place for dairy innovation and knowledge.
New this year, the WDE – Doug Williams Memorial Booth Awards will be presented to outstanding commercial exhibitors. The categories for these booth awards include: Best New Exhibitor, Best Outdoor Space, The Showstopper, Most Interactive and Best of Show (which may or may not be a winner in another category). Two industry experts and a member of the WDE Commercial Exhibitor Committee will serve as judges for the Doug Williams Memorial Booth Awards. Award winners will be notified by 2 p.m. on Tuesday, Sept. 30, and the awards will be presented on Wednesday, Oct. 1.
Doug Williams, who passed away in January 2025, was a familiar face to those visiting Kuhn North America’s booth at WDE for 30 years. Williams served on WDE’s Commercial Exhibitor Committee for 24 years and was the chairman of the committee, as well as a member of WDE’s Executive Committee for six years and WDE’s board of directors for 10 years. Always quick with a smile, a helping hand and sound business acumen, Williams’ contributions to WDE were many, and those qualities were only a fraction of why he was also honored as a Friend of Expo in 2014.
Dairy MAX names Jennie McDowell new CEO
Dairy MAX announced the appointment of Jennie McDowell as CEO, effective July 28, 2025.
McDowell brings to the role a deep understanding of the organization’s mission, strong industry relationships and a proven track record of strategic and operational leadership. She succeeds Keira Lombardo, who has played a key role in advancing the organization.
McDowell joined Dairy MAX in 2012 and most recently served as chief strategy officer, where she led long-range planning, championed organization-wide innovation and strengthened alignment with national partners, including DMI and the U.S. Dairy Export Council (USDEC). Before that, as vice president of business development, she generated $5.6 million in online dairy sales through a groundbreaking esports influencer and Instacart collaboration, and restructured college athlete campaigns to expand reach and reduce costs by 70%.
McDowell also played a critical role in Dairy MAX’s pandemic response, partnering with Borden Dairy to secure a $147 million USDA award that enabled the distribution of over 40 million pounds of milk for emergency relief in 2020.
On the international front, McDowell coordinated export initiatives that strengthened relationships in Mexico and led to 32% month-over-month growth in cheese sales in H-E-B stores located in Mexico. Her focus on global collaboration has deepened connections with USDEC and partners across the federation to increase both domestic and international demand for dairy.
