An additional case of foot and mouth disease (FMD) was confirmed on a dairy farm in Hungary, bringing the country’s total number of confirmed cases up to five. Slovakia reported multiple FMD outbreaks on farms near its border with Hungary and Austria. As of now, six farms have been affected.
U.S. milk production from January through March totaled 56.7 billion pounds, a 0.3% decline from the same time frame last year. Additionally, producers are keeping their cows as the U.S. herd averaged 9.40 million head, up 36,000 from the final quarter of 2024 and 58,000 more head than the same time period last year.
The International Dairy Foods Association (IDFA) announced a proactive pledge to eliminate artificial colors in cheese, milk, and yogurt products sold to kindergarten through 12th grade schools for the National School Lunch and Breakfast Programs. While most dairy products sold to schools do not contain any certified artificial colors, moving ahead, the companies joining the “Healthy Dairy in Schools Commitment” program have pledged to discontinue products containing these colors.
The Dairy Forward Pricing Program (DFPP), which expired in September 2024, has been reauthorized through 2025. The final rule was published in the Federal Register, allowing handlers to enter DFPP contracts through September 30, 2025. The contracts will remain valid until September 30, 2028. The program, revived under the American Relief Act of 2025, permits negotiated pricing for nonfluid milk classes (II, III, IV) under the Federal Milk Marketing Order system, excluding Class I (fluid) milk.
New Zealand’s milking season is coming to a close, and milk production through March was up 2.6%. Solids grew 3.4% over the same time frame. Kiwi milk prices remain high as demand has been strong from Asia, particularly China.
Dairy cooperatives Arla Foods and DMK Group announced plans to merge. By joining the two European-based dairy companies, it is reported to represent more than 12,000 dairy farms and anticipate revenues approaching €19 billion ($21.2 billion).
With cream multiples nearing the record lows of March 2020, butter churns have been running at full capacity, because of ample supplies and processor-friendly prices. In normal times, the U.S. would have been teeming with butter; however, U.S. butter prices have been nearly $1 per pound lower than its major export competitors.
Despite tariffs, U.S. butter has been price-competitive. That market dynamic led to the doubling of U.S. butter exports in February, with a tenfold gain in anhydrous milkfat sales, as shown in the graph below. For more insight on U.S. butterfat supplies, turn to page 235.
