In the news impacting a dairy producer's bottom line the third week of May 2026:
- June Class I base price reaches $22.18 per cwt
- Fluid milk sales 2.3% higher than a year earlier
- GDT index moves up slightly
- NMPF: Protein demand remains high amid increasing pressure on consumers
- FARM Environmental Stewardship integrates newly updated RuFaS Model
- Entries open for 2026 World Forage Analysis Superbowl
- U.S. dairy treats members of Congress at White House Congressional Picnic
June Class I base price reaches $22.18 per cwt
Announced May 20, the Federal Milk Marketing Order (FMMO) advanced Class I base price reached $22.18 per hundredweight (cwt) for June. Not only is the price up $2.03 per cwt from the previous month, it is also $4.92 per cwt above the same advanced Class I base price of June 2025 and the highest price reported since November 2024.
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, June’s Class I price should average $26.30 per cwt across the orders with the Florida FMMO to be on top with $28.98 per cwt and the Arizona FMMO falling to the bottom with $24.78 per cwt.
The June Class I base skim milk price was $16.75 per cwt, up from May’s $14.12 per cwt. The spread in the monthly advanced Class III skim milk pricing factor ($11.39 per cwt) and the advanced Class IV skim milk pricing factor ($16.75 per cwt) was an astonishing $5.36 per cwt as the Class IV was used as the “higher of” for the Class I mover in the milk pricing formula. The advanced butterfat pricing factor was $1.72 per pound, falling from May’s $1.86 per pound.
The advanced Class I base price and pooling percentages will impact regional FMMO uniform milk prices. May regional prices will be announced June 9-12. The June regional prices will be announced July 9-14.
Fluid milk sales 2.3% higher than a year earlier
With 3.6 billion pounds of packaged fluid milk products shipped by milk processors in March 2026, fluid milk sales were up 2.3% from March 2025. According to data from the USDA Agricultural Marketing Service:
- Total sales: March 2026 sales of packaged fluid milk products were estimated at 3.6 billion pounds, up 2.3% from the same month a year earlier. At 10.8 billion pounds, year-to-date sales of all fluid products are 0.2% lower than last year.
- Conventional products: Monthly sales totaled 3.4 billion pounds, up 2.1% from the same month a year earlier. Sales of flavored whole milk were 13.4% higher than last year, and whole milk was up 4.8%. Year-to-date 2026 sales were estimated at 10 billion pounds, down 0.2% from last year.
- Organic products: March sales totaled 272 million pounds, up 5.6% than a year earlier. Sales were up 31.5% for flavored whole milk and up 10.3% in whole milk. Year-to-date organic fluid milk sales were estimated at 774 million pounds, up 0.1% from this time last year. Organic represented about 7.5% total fluid product sales in March.
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 moves up slightly
The price index of dairy product prices sold on the Global Dairy Trade (GDT) platform is up 0.6% in the auction held May 19.
Compared to the previous auction, prices for individual product categories were mostly higher. Mozzarella and butter were up 2.9% and 2.5%, respectively. Whole milk powder was up 1.2%, and lactose and skim milk powder were up less than 1%. Trading lower were anhydrous milkfat, down 1.6%, and cheddar cheese, down 1.3%. Buttermilk powder was not traded.
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 June 2.
NMPF: Protein demand remains high amid increasing pressure on consumers
Milk production grew 2.3% on a liquid basis in March, marking the fourth consecutive month of positive but slowing milk production. Despite decelerating production, milkfat supplies remain ample, and CME butter prices have eased over the last month as a result, according to a report from Katriel Marks-Yant at the National Milk Producers Federation (NMPF).
Summarizing dairy markets in the May 2026 Dairy Management Inc./NMPF Dairy Market Report, Marks-Yant says, “Skim solids tell a different story: Nonfat dry milk (NFDM) prices set records throughout April and into May as new cheese capacity and insatiable demand for high-protein dairy products competed with dryers for milk.”
Yogurt and cottage cheese production and retail sales continue to gain momentum, and whey protein concentrate use rose almost 20% in March despite steep prices.
However, even as protein demand remains high, warning signs of economic pressures on consumers are beginning to flash. Inflation in April accelerated to 3.8%, and consumer sentiment dropped to a record low. Economic pressures have translated to softer food service volumes, highlighted by cheese and butter domestic use easing.
For more information on commercial use, dairy trade, milk production, product inventories, prices and margins, view the May 2026 Dairy Market Report.
FARM Environmental Stewardship integrates newly updated RuFaS Model
The FARM Environmental Stewardship (ES) Program released revisions to its Version 3 evaluation tool, integrating the latest scientific updates from the Ruminant Farm Systems (RuFaS) model that powers FARM ES Version 3.
“FARM Environmental Stewardship continues to adapt as science and technology advance within the dairy sector,” said Nicole Ayache, NMPF’s chief sustainability officer. “By integrating the latest model into the evaluation tool, farmers can better understand how practices affect their footprint and identify stewardship opportunities that align with business goals.”
The new release includes features like the integration of homegrown feeds into the total farm footprint to better capture field-level practices. The scientific methodology that underpins the modeling of youngstock manure as well as manure storage have also been improved, with the latter more accurately sensitive to the effects of temperature.
Entries open for 2026 World Forage Analysis Superbowl
Entries are being accepted for the World Forage Analysis Superbowl, which is open to all forage producers across North America. The 2026 contest, held in conjunction with World Dairy Expo, is set to award over $26,000 in cash prizes.
The deadline to submit corn silage samples is July 9, while all other entries must be submitted by Aug. 20. The $45 entry fee provides entry into the contest along with a detailed sample analysis that is sent to entrants after judging is complete. Entry forms are available online.
All award winners will be recognized at the Forage Superbowl Reception on Wednesday, Sept. 30, at World Dairy Expo in Madison, Wisconsin.
U.S. dairy treats members of Congress at White House Congressional Picnic
Members of the International Dairy Foods Association (IDFA) donated more than 2,700 ice cream novelties and handheld frozen treats for this year’s White House Congressional Picnic, sharing a timeless American favorite with members of Congress, administration officials and their families gathered on the White House South Lawn.
“Ice cream is one of America’s most cherished traditions, bringing families, friends and communities together across generations,” said Michael Dykes, president and CEO of IDFA. “We are proud to support this year’s White House Congressional Picnic and celebrate the people who dedicate themselves to serving our nation. These treats were made in America using milk produced by hardworking U.S. dairy farmers, reflecting the pride, innovation and dedication of our dairy industry.”
This marks IDFA’s second White House ice cream event in the past year, following the White House Summer Soirée in 2025, further highlighting the strong connection between America’s dairy industry and iconic national traditions that bring people together.
