In the news affecting a dairy producer's bottom line the first week of May 2026:
- USDA puts Whole Milk for Healthy Kids Act into effect
- GDT index back up 1.5%
- Farmer sentiment declines amid input cost and availability concerns
- U.S. dairy companies donate 22,000 meals to reduce hunger in San Diego County
- Industry leaders focus on progress at Sustainability Alliance Meeting
USDA puts Whole Milk for Healthy Kids Act into effect
The USDA issued an interim final rule implementing the Whole Milk for Healthy Kids Act, restoring flexibility for schools and child nutrition providers participating in federal child nutrition programs to offer whole and reduced-fat (2%) milk options to adults and children ages 2 and older.
Michael Dykes, DVM, president and CEO of the International Dairy Foods Association (IDFA), said, “IDFA applauds USDA for moving quickly to put the law into effect and provide school nutrition directors and school milk processors the certainty they need to offer students the nutritious milk options that best meet their nutrition needs.”
GDT index back up 1.5%
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is up 1.5% in the auction held May 5, after trading lower the last few events.
Compared to the previous auction, prices for individual product categories were mostly higher. Buttermilk had the largest increase, up 9%. Mozzarella was up 4.7%, lactose was up 3.7%, and skim milk powder was up 3%. Also trading higher were whole milk powder and anhydrous milkfat, up 2.2% and 1.1%, respectively. Trading lower were cheddar cheese, down 3.6%, and butter, down 2.6%.
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 19.
Farmer sentiment declines amid input cost and availability concerns
Farmer sentiment decreased from 127 in March to 121 in April, with the decline in sentiment regarding current conditions being larger than the corresponding decline in sentiment related to future expectations, according to the latest Purdue University/CME Group Ag Economy Barometer.
“Concerns about input costs remained high, and a higher percentage of respondents indicated that input availability is a major concern, likely driven by the uncertainty the Iran conflict has caused in fertilizer markets,” said Michael Langemeier, the barometer’s principal investigator and director of Purdue University’s Center for Commercial Agriculture.
A lower percentage of respondents indicated that U.S. policy is headed in the “right direction,” along with a lower percentage expecting land values to increase in the next five years, pointing to less optimism regarding long-run sentiment.
There continues to be a large disparity in expectations between crop and livestock producers. Approximately 31% of respondents expected good times for crop producers, while 69% expected good times for livestock producers.
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 May 5, reflect ag producer outlooks as of April 13-17.
U.S. dairy companies donate 22,000 meals to reduce hunger in San Diego County
The IDFA Foundation and several leading dairy companies donated 12,960 units of shelf-stable milk and $6,000 to Feeding San Diego food bank to address hunger in San Diego County. The donations were announced at a two-hour service event at the food bank where more than 30 dairy food company executives sorted and packed lunches for food-insecure families. Altogether, the donations from the IDFA Foundation and its partners will support more than 22,000 meals for people in need.
Generous donations were made possible by the following IDFA members:
- 12,960 units of shelf-stable milk by the Marcel J Damiens Family Foundation and Diversified Foods Inc. of Louisiana, valued at approximately $7,700
- Idaho Milk Products
- Daragh Maccabee
Industry leaders focus on progress at Sustainability Alliance Meeting
More than 260 dairy value chain leaders – including 26 farmers – gathered April 28-30 for the 2026 Dairy Sustainability Alliance Spring Meeting, with a focus of turning shared priorities into practical progress across the industry.
The Dairy Sustainability Alliance – created through the checkoff-founded Innovation Center for U.S. Dairy – brings together farmers, cooperatives, processors, retailers, food service, researchers and NGOs to collaborate to advance dairy’s shared social responsibility priorities.
Dennis Rodenbaugh, president and CEO of Dairy Farmers of America and chair of the Innovation Center for U.S. Dairy, began the meeting by emphasizing progress starts with alignment.
“Everyone here represents something essential to our industry – farmers, cooperatives, processors and customers,” Rodenbaugh said. “All of you are here as partners in this ongoing pursuit.”
Rodenbaugh highlighted the evolution he has seen, noting a growing focus on nutrition, increased confidence in telling dairy’s story and a stronger commitment to facts and action.
A major focus of the meeting was the growing momentum around dairy’s role in health and nutrition. Sessions focused on how to turn this momentum into real demand by better connecting with consumers.
Farmer-focused sessions centered on what it takes to make sustainability efforts practical and economically viable.
The meeting closed with a farmer-led panel that grounded the conversation in day-to-day realities on the farm. Producers David Elliott, South Dakota; Maynard Mallonee, Washington; and Ben Smith, Virginia; shared how evolving sustainability expectations are shaping decisions on their operations.
The discussion reinforced that sustainability does not look the same on every operation, and that progress depends on solutions that work across different regions, sizes and production systems.
