The USDA’s April WASDE raised 2026 milk production to 235.3 billion pounds as increases to the dairy cow inventory more than offset slower growth in milk output per cow.

February cemented the speed at which U.S. dairy exports are moving in today’s global marketplace.

In dairy-related news during the first week of April 2026: the Holstein Association USA board approves additional changes, U.S. farmers share their planting intentions, USDA expands SNAP dairy nutrition incentives, and World Dairy Expo announces award winners and new board members.

Dairy markets continue moving in the right direction as milk class prices improve substantially month over month as recorded in the latest Federal Milk Marketing Order (FMMO) milk class price report.

Despite dairy margins strengthening – particularly in Class III and Class IV – which offered an increase in the all-milk price and offset sturdy feed costs, it was not enough for February’s margin to sit above the maximum payment threshold of the DMC program.

This month’s outlook for 2026 beef production is down 110 million pounds from last month to 25.81 billion pounds. This is the result of a slower than previously anticipated pace of cattle slaughter in February and early March that is partially offset by heavier than previously expected carcass weights. The projection remains about 1% below 2025 levels and 9% below the record high set in 2022.

As we look to the second quarter of 2026, dairy markets have improved and margins are historically strong with forecasts playing in producers’ favors, particularly with incremental improvements in Class III and Class IV.

Based on latest USDA monthly Livestock Slaughter data the number of dairy cull cows marketed through U.S. slaughter plants in February 2026 was estimated at 237,300.

Twenty states including Kansas, California and Texas boosted milk production a combined 602 million pounds in February.

The momentum of U.S. dairy exports in 2025 carried on as the calendar turned to 2026. January proved international interest in U.S. dairy products remains as year-over-year growth reached 12% in milk solids equivalent volume, with cheese and butterfat continuing to lead the way.