In dairy-related news to end April 2026:
- Organic dairy producers file class action suit against the U.S. government
- Minnesota passes DAIRI bill to expand support for dairy farmers
- Chocolate returns to the top as America’s favorite ice cream flavor
- DMI board launches search for new CEO
- Walmart opens third milk processing facility in Texas
- NMPF: Dairy product prices continue to gain strength
Organic dairy producers file class action suit against the U.S. government
A group of organic dairy farmers filed a class action takings claim seeking compensation for required contributions made to the USDA Federal Milk Marketing Order (FMMO) program.
Additionally, the Coalition for Organic Dairy Exemption (CODE) members filed suit against the U.S. government, challenging the requirement that organic dairy farmers and processors must participate in the FMMO program.
The organic producers claim the FMMO program does not reflect the modern marketplace – especially for organic. During an already tough farm economy, this means organic dairy is paying millions into a pricing program that only benefits other industry segments but provides no benefits to organic farmers.
Organic dairy represents approximately 3% of total U.S. milk production. CODE’s legal filings argue that an organic exemption would not alter the fundamental economics of the conventional dairy market.
For nearly 11 years, the organic dairy industry pursued every available administrative channel – submitting proposals in 2015 that the USDA refused to advance, presenting organic-specific proposals at the 2023 national FMMO hearing that the USDA refused to consider, raising objections in post-hearing briefing in 2024 that went unaddressed in the final rule and filing 15(A) administrative petitions in May 2025. With no other path forward, the industry is taking legal action as to its U.S. constitutional claims.
Minnesota passes DAIRI bill to expand support for dairy farmers
The Minnesota Milk Producers Association announced the passage of legislation updating the Dairy Assistance, Investment and Relief Initiative, known as the DAIRI program, to ensure more Minnesota dairy farmers can access important financial assistance.
The bill modifies eligibility requirements for the state-funded program, which provides supplemental financial support to dairy farmers who voluntarily enroll in the federal Dairy Margin Coverage (DMC) program.
The updated legislation addresses an unintended gap in current law that excluded newer dairy farms or farms that only operated for part of 2022. Previous eligibility standards relied on 2022 milk production history, preventing approximately 30 Minnesota dairy farms that began operating after 2022, or were not fully operating that year, from qualifying for assistance.
With passage of the bill, those farms will now be eligible for DAIRI payments based on production history established through their DMC enrollment rather than 2022 production records. The measure also allows any remaining unencumbered funds after June 30, 2026, to be used for similar authorized purposes under the program.
The DAIRI program was originally funded in 2023, with appropriations later shifted to fiscal year 2025. Following legislative adjustments this year, $3 million remains available to support participating dairy farmers.
Chocolate returns to the top as America’s favorite ice cream flavor
Chocolate has reclaimed its place as America’s favorite ice cream flavor, according to the International Dairy Foods Association’s (IDFA) biannual National Ice Cream and Frozen Novelty Trends Survey. After vanilla took the top spot in 2024, this year’s results show chocolate back at No. 1, with butter pecan also rising ahead of vanilla among U.S. consumers.
Conducted in partnership with Morning Consult, the survey captures the preferences of more than 2,200 U.S. adults nationwide, offering a comprehensive look at how Americans enjoy ice cream and frozen novelties – from flavors and toppings to formats and traditions.
The survey provides a clear snapshot of how Americans’ tastes are evolving. This year’s results highlight a blend of nostalgia and indulgence, with classic flavors holding strong alongside richer, more decadent favorites gaining ground.
Top five flavors among the general American public:
- Chocolate
- Butter pecan
- Vanilla
- Cookies and cream/Oreo
- Caramel/salted caramel
DMI board launches search for new CEO
Dairy Management Inc. (DMI) announced the formal launch of its search for a new president and chief executive officer, following the announced planned retirement of CEO Barbara O’Brien later this year.
The DMI board of directors has engaged ZRG Partners, a top 10 global talent advisory firm, to support a comprehensive and inclusive search process aimed at identifying a dynamic leader to guide the organization into its next chapter of growth and impact.
The search marks an important milestone in DMI’s leadership transition, which was initiated earlier this year as part of a deliberate and well-planned succession process designed to ensure continuity and long-term success for the dairy checkoff.
The next CEO will be responsible for advancing DMI’s mission to increase dairy sales, drive innovation and build trust in dairy products and the farm families behind them. This includes oversight of the national dairy checkoff and its related organizations, including National Dairy Council, U.S. Dairy Export Council and Innovation Center for U.S. Dairy.
O’Brien will continue to serve as president and CEO through the completion of her term, working closely with the board and leadership team to support a seamless transition and continued execution of DMI’s strategic priorities.
DMI encourages qualified candidates and industry leaders interested in the role to direct inquiries, nominations and applications to Melissa Oszustowicz, managing director at ZRG.
Walmart opens third milk processing facility in Texas
Walmart celebrated the grand opening of its third owned-and-operated milk processing facility in Robinson, Texas – a major milestone that will create more than 400 new jobs; strengthen Walmart’s end-to-end supply chain for affordable, high-quality milk; and advance the company’s long-standing commitment to U.S. manufacturing and local sourcing. The more than 300,000-square-foot facility represents more than a $350 million investment.
Sourcing milk directly from local dairy farmers, the Robinson facility will process and bottle a variety of milk options – including gallon, half-gallon, whole, 2%, 1%, skim and 1% chocolate milk – for Walmart’s Great Value and Sam’s Club Member’s Mark brands. The new operation will supply more than 650 Walmart stores and Sam’s Clubs across the south-central U.S.
It follows the company’s investment in its first milk processing facility in Fort Wayne, Indiana, and its second milk processing facility in Valdosta, Georgia, which opened last year.
NMPF: Dairy product prices continue to gain strength
Dairy product prices have continued to gain strength even as milk production grew 2.9% on a liquid basis in February, according to a report from Katriel Marks-Yant at the National Milk Producers Federation (NMPF).
Summarizing dairy markets in the April 2026 Dairy Management Inc./NMPF Dairy Market Report, Marks-Yant says, “While milk supplies weighed on markets in 2025, new processing capacity coming online in early 2026 has funneled milk towards product production. Even as dairy product production grows, demand is growing for most products, both domestically and abroad.”
Butter, cheese and dry whey showed growth in both domestic use and exports in February. Despite recent focus on high-protein products, butter had a particularly strong month, with exports up 94% and domestic use up 15% year over year. Healthy demand for dairy products is supporting commodity prices at the CME, with all except dry whey posting monthly gains in March. Nonfat dry milk reached record levels in mid-April as high-protein products competed for skim solids. DMC margins improved slightly from January, settling at $8.46 per hundredweight for February, and recent price rallies in commodity prices are expected to boost margins in the coming months.
For more information on commercial use, dairy trade, milk production, product inventories, prices and margins, view the April 2026 Dairy Market Report.
