In the news affecting a dairy producer's bottom line the first week of November 2025:
- Slight rise in farmer sentiment fueled by livestock
- GDT index continues to fall
- Fluid milk sales down in August
- Dairy Innovation Hub releases sixth annual report
Slight rise in farmer sentiment fueled by livestock
Farmer sentiment in October saw a modest increase of three points from September, according to the latest Purdue University/CME Group Ag Economy Barometer. The slight rise came from an increase in current conditions, whereas future expectations remained virtually unchanged.
“Farmers' appraisal of current conditions on their farms continues to be a tale of two economies,” said James Mintert, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
“Livestock producers remain very optimistic about conditions on their farms, fueled in part by record-high profitability in the beef sector. At the same time, poor profit margins across all major crop enterprises lead crop producers to provide a notably more pessimistic view of the current situation on their farms,” Mintert continued.
While uncertainly over U.S. tariff policy remains, over 70% of U.S. producers say the U.S. is headed in the right direction.
Crop farmers continue to expect the USDA to provide compensation for weak commodity prices, which more than half plan to use to pay down debt.
The Ag Economy Barometer provides a monthly snapshot of farmer sentiment regarding the state of the agricultural economy. The survey collects responses from 400 producers whose annual market value of production is equal to or exceeds $500,000. Minimum targets by enterprise are as follows: 53% corn/soybeans, 14% wheat, 3% cotton, 19% beef cattle, 5% dairy and 6% hogs. Latest survey results, released Nov. 4, reflect ag producer outlooks as of Oct. 13-17.
GDT index continues to fall
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is down 2.4% in the auction held Nov. 4. This is the sixth consecutive downward change and the lowest index value since August 2024.
Compared to the previous auction, prices for individual product categories were mixed. Mozzarella and buttermilk powder traded higher, up 1.6% and 1%, respectively. Cheddar cheese dropped 6.6%, followed by butter, which was down 4.3%. Whole milk powder was down by 2.7%, and anhydrous milkfat was down 1.9%. Skim milk powder saw little change, and lactose was not offered at this trading event.
The GDT platform offers dairy products from several global companies: Fonterra (New Zealand), Darigold, Valley Milk and Dairy America (U.S.), Inalpi (Italy), Arla (Denmark), Arla Foods Ingredients (Denmark), BMI (Germany), Kerry Dairy (Ireland) and Solarec (Belgium).
The next GDT auction is Nov. 18.
Fluid milk sales down in August
Fluid milk sales for August 2025 trailed year over year for the second consecutive month. According to data from the USDA Agricultural Marketing Service:
- Total sales: August 2025 sales of packaged fluid milk products were estimated at 3.5 billion pounds, down 4% from the same month a year earlier. At 27.9 billion pounds, year-to-date sales of all fluid products are 1.5% lower than last year.
- Conventional products: Monthly sales totaled 3.2 billion pounds, down 3.6% from the same month a year earlier. Sales of flavored whole milk were 12.6% higher than last year, and fat-free (skim) milk was also up 7%. Sales of reduced fat (2%) milk and lowfat (1%) milk were down 9.6% and 6%, respectively. Year-to-date 2025 sales were estimated at 25.9 billion pounds, down 1.5% from this time last year.
- Organic products: August sales totaled 236 million pounds, 9.4% less than a year earlier. Sales were down 6.2% to 19.5% across all categories. Year-to-date organic fluid milk sales were estimated at 2 billion pounds, down 1.4% from this time last year. Organic represented about 6.8% total fluid product sales in August.
The U.S. figures are based on consumption of fluid milk products in Federal Milk Marketing Order (FMMO) areas, which account for approximately 92% of total U.S. fluid milk sales, and adding the other 8% from outside FMMO-regulated areas. Sales outlets include food stores, convenience stores, warehouse stores/wholesale clubs, nonfood stores, schools, the food service industry and home delivery.
Dairy Innovation Hub releases sixth annual report
The Dairy Innovation Hub has released its sixth annual report, reflecting progress and activities at University of Wisconsin (UW) – Madison, University of Wisconsin – Platteville and University of Wisconsin – River Falls from July 2024 through June 2025.
The report outlines the major accomplishments of the hub, both since its inception and during the preceding fiscal year.
Highlights of the report include:
- More than 260 projects funded across three campuses and four priority areas
- 23 total faculty searches across three campuses, with more planned for the future
- $4.2 million for dairy talent through recently hired faculty, trainees and staff
- $7.8 million allocated for new dairy initiatives during the 2025 fiscal year
- Academic research achievements, including engaged students, scholarly publications, presentations, leveraged funding and more
- Collaborative and synergistic initiatives across three campuses
- Engaged advisory council and three active steering committees
In addition to releasing the annual report, the hub will host its sixth annual Dairy Summit conference on Nov. 18 at UW – River Falls. The summit features the hub’s newest projects, formatted for a general audience. There is a live virtual option, and sessions will be recorded and posted to YouTube.
Farmers, processors, dairy professionals, legislators and community members are invited to attend this free educational event.
Check out the hub’s website to register and view the complete schedule, including a listing of all speakers.
