In the news affecting a dairy producer's bottom line the third week of April 2026:
- May Class I base milk price climbs past $20 per cwt
- Fluid milk sales remain lower than last year
- GDT index is down again
- Alltech survey estimates world feed production increased in 2025
- Protein innovation, margin discipline emerge as top priorities for dairy executives
- Applications open for Dairy’s Foundation grants, June 1 deadline
May Class I base milk price climbs past $20 per cwt
The Federal Milk Marketing Order (FMMO) advanced Class I base price surpassed $20 per hundredweight (cwt) in May. The price per cwt reached $20.15 per cwt, up $1.49 per cwt from April and up $1.78 per cwt from May of last year. May’s price was influenced by the strong market conditions seen in Class IV as nonfat dry milk prices rally to record levels.
Class I zone differentials are added to the base price principal pricing points to determine the actual Class I price in each FMMO. With those additions, May’s Class I prices should average $24.27 per cwt across the orders, with the Florida FMMO to take the lead at $26.95 per cwt and the Arizona FMMO to bring up the rear at $22.75 per cwt.
The May Class I base skim milk price was $14.12 per cwt, up $2.12 from the previous month. The spread in the monthly advanced Class III skim milk pricing factor ($10.78 per cwt) and the advanced Class IV skim milk pricing factor ($14.12 per cwt) was $3.34 per cwt, with Class IV being used as the higher of for the Class I mover in the milk pricing formula. The advanced butterfat pricing factor was $1.86 per pound, down from April’s high of $2.02 per pound.
The Class I base price and pooling percentages will impact regional FMMO uniform milk prices. April regional prices will be announced May 11-14, followed by May regional prices announced June 9-12.
Fluid milk sales remain lower than last year
Fluid milk sales for February 2026 were down from last year by 0.4%, continuing to lower year-over-year sales. According to data from the USDA Agricultural Marketing Service:
- Total sales: February 2026 sales of packaged fluid milk products were estimated at 3.4 billion pounds, down 0.4% from the same month a year earlier. At 7.1 billion pounds, year-to-date sales of all fluid products are 1.4% lower than last year.
- Conventional products: Monthly sales totaled 3.1 billion pounds, down 0.5% from the same month a year earlier. Sales of flavored whole milk were 10.1% higher than last year, and whole milk was up 2.9%. Year-to-date 2026 sales were estimated at 6.6 billion pounds, down 1.3% from last year.
- Organic products: February sales totaled 242 million pounds, up 0.4% than a year earlier. Sales were up 72.2% for flavored whole milk and up 9.2% in whole milk. Year-to-date organic fluid milk sales were estimated at 503 million pounds, down 2.7% from this time last year. Organic represented about 7.2% total fluid product sales in February.
The U.S. figures are based on consumption of fluid milk products in 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.
GDT index is down again
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is down 2.7% in the auction held April 21.
Compared to the previous auction, prices for individual product categories were mixed. Lactose was up 7.2%. Skim milk powder and cheddar cheese were also up, 3.2% and 1.1%, respectively. Anhydrous milkfat was down 9.6%, and butter was down 7.9%. Mozzarella and whole milk power were also lower by 3.1% and 0.6%, respectively. Buttermilk powder saw little change.
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 May 5.
Alltech survey estimates world feed production increased in 2025
Alltech released its 2026 Agri-Food Outlook, a report that includes the results of the company’s annual global feed production survey. Based on that data, global feed production in 2025 reached an estimated total of 1.44 billion metric tons (MT) – representing an increase of 2.9% and 40.136 million MT from 2024.
Most regions and sectors experienced growth, and the numbers suggest a strong recovery phase for animal agriculture; however, the data shows that growth was uneven, increasingly regionalized and driven less by herd expansion than by structural change, productivity gains and shifts in how production is measured and recorded.
Now in its 15th year, the annual survey collected data from 142 countries and 38,837 feed mills in late 2025.
The top 10 feed-producing countries remained unchanged between 2024 and 2025. Altogether, those 10 countries (listed below) produced 65.2% of the world’s feed in 2025 – and 47.7% of all global feed tonnage was produced in the top three countries: China, the U.S. and Brazil.
- China: 330.063 million MT; +4.8%
- U.S.: 267.383 million MT; -0.8%
- Brazil: 89.904 million MT; +2.8%
- India: 57.729 million MT; +4.5%
- Mexico: 41.883 million MT; +1.2%
- Russia: 38.347 million MT; +1.1%
- Spain: 37.507 million MT; -3.4%
- Vietnam: 26.524 million MT; +2.6%
- Turkey: 25.480 million MT; +3.8%
- Japan: 24.006 million MT; -1.3%
Global feed volume results by species
- Broiler: 400.379 million MT; +3.7%
- Layer: 180.126 million MT; +3.2%
- Pig: 380.907 million MT; +3.0%
- Dairy: 170.294 million MT; +2.6%
- Beef: 134.181 million MT; +0.5%
- Aquaculture: 55.470 million MT; +4.7%
- Pet: 39.276 million MT; +2.4%
- Equine: 10.194 million MT; +0.2%
Protein innovation, margin discipline emerge as top priorities for dairy executives
New research released by McKinsey & Company (McKinsey) finds that cost management and volume growth are among the top strategic priorities for dairy organizations in 2026 at a time when the industry continues to cope with a challenging operating environment, defined by persistent cost inflation, labor constraints, input volatility and rising uncertainty around trade and regulation.
Surveying over 200 dairy industry executives across the U.S. and Europe – in partnership with the International Dairy Foods Association and the European Dairy Association – McKinsey’s eighth annual The dairy industry’s 2026 playbook: Protect margins, pursue growth report reveals industry leaders’ top priorities and concerns, and highlights the emerging trends that are shaping the dairy space in 2026.
Key findings include:
- Cost and volume growth are the top strategic priorities of dairy leaders: Approximately 65% of U.S. respondents ranked cost management among their top three priorities – consistent with 2024 (69%) and up from 2023 (48%) – reflecting sustained cost increases in raw materials and logistics. European leaders report similar pressure, with roughly half placing cost among their top three priorities.
- Most organizations report flat or shrinking margins: Nearly 70% of surveyed dairy companies reported flat or shrinking margins in 2025, up from 66% in 2024 and 58% in 2023. Europe shows a comparable dynamic, with 57% reporting flat or shrinking margins in 2025.
- Protein is a key innovation and growth engine: 88% of U.S. dairy executives cite protein as the most influential consumer demand trend, far ahead of convenience, premiumization or plant-based alternatives.
- Artificial intelligence (AI) adoption rates are deliberate, but expectations are rising: Roughly four in five U.S. dairy executives report using AI or advanced analytics in some capacity, primarily in administrative efficiency, maintenance, planning and knowledge retention.
- Diverging sustainability priorities across regions: In Europe, 53% of executives rank sustainability among their top three priorities, compared with only 16% in the U.S. – up slightly from 12% in 2024 but still well below 44% in 2023.
At a macro level, the research finds that dairy leaders remain optimistic about long-term demand fundamentals, even as cost pressures persist. Across the U.S. and Europe, the agenda is sharpening around a small number of value-creating priorities, including protecting margins through disciplined cost and operational management, pursuing profitable volume growth anchored in protein-led innovation, and prioritizing sustainability initiatives that deliver measurable impact and operational value.
Applications open for Dairy’s Foundation grants, June 1 deadline
Innovation and new ideas have driven progress in the dairy industry for generations. Dairy’s Foundation is encouraging dairy associations, nonprofits and educational organizations across the country to apply that same spirit of innovation to create new programs that build the skills of students or dairy producers or increase public trust in the people and products of dairy.
Grants of up to $10,000 are available to support educational initiatives that develop people, spark innovation and strengthen the future of dairy. Applications are due June 1.
Dairy’s Foundation strives to identify emerging educational needs and help fill gaps in funding for new or innovative programs. Since 2010, Dairy’s Foundation has awarded more than $370,000 in grants to support vital programs that equip the dairy community with the latest tools and resources to be effective managers, leaders and ambassadors of dairy to their neighbors in rural and urban settings.
Applications will be reviewed by an independent grant selection committee. Organizations with a tax status of 501(c)(3) or (5) may apply.
