June DMC Margin Rises $0.70/cwt

The June margin for the Dairy Margin Coverage Program was $11.10/cwt in June, an increase of $0.70/cwt from May. The June all-milk price was unchanged from May at $21.30/cwt, while the June DMC feed cost formula dropped by $0.70/cwt for the month, as the prices of all three formula feed components decreased, particularly that for premium alfalfa hay.

The forecasts maintained by DMC Decision Tool on the USDA website at the end of July showed the DMC margin topping out $13.20/cwt in November and averaging $12.11/cwt for the year.

Dairy Maintains Momentum Through Turbulence

It doesn’t really need to be said, because evidence is everywhere. But it’s worth repeating, in light of how easy it is to lose focus among turbulence in labor, trade and politics: Dairy’s future is incredibly bright.

Any skepticism toward that idea can quickly be countered with about 10 billion reasons. That’s the dollar amount of investments in new dairy processing capacity that’s coming online between 2023 and 2026, according to an NMPF analysis. Ultimately, these investments are an investment in the U.S. dairy farmer.

From Washington state to Georgia, manufacturers are placing their bets on increased consumer demand for dairy products. State-of-the-art facilities are promising to put affordable, nutritious dairy foods on store shelves and dinner plates in the United States and around the world. The processing growth is creating new outlets for dairy farm production, a tide that lifts all boats across the industry.

And the realization that growing consumer demand isn’t just a forecast: It’s current reality.

  • U.S. fluid-milk consumption rose last year for the first time since 2009. Milk’s market share versus plant-based imposters continues to rise (as if nut drinks were ever truly a threat in the first place).
  • Cottage cheese has emerged as the go-to snack food for Generation Z.
  • And per capita overall U.S. dairy demand continues at levels last seen in the 1950s.

All that is a tribute to the fact that, even with all the diet diversification since then, dairy remains a bedrock of American diets, accessible to all, affordable, and trusted. It’s also a tribute to the industry’s vision and how long-term producer investment in the dairy checkoff has encouraged innovation in new research, technologies, and products.

Overseas sales remain a bright spot for the industry as well. That may seem surprising, given all the headlines of volatility in global trade as the United States tries to reset global commerce. But it’s true: In 2025 through May, the value of U.S. dairy exports was $3.873 billion, 13% higher than the same period last year, when they were $3.422 billion.

That’s a powerful testament to the resilience of U.S. dairy producers and exporters who work around the clock, managing and building relationships that are being heavily tested this year. While overall year-to-date sales volumes are slightly down, and Chinese retaliatory tariffs have heavily weighed down sales to that market, higher-value products like high protein whey products have grown 8% by volume and 30% by value year-to-date. Similarly, U.S. cheese exports are up 7% by volume and 18% by value when compared to 2024 exports through May.

Recent progress in new trade deals with trade partners such as Indonesia also brings encouragement that eventually trade waters will calm, with new opportunities possible for U.S. dairy producers as the turbulence ebbs. Thank you, U.S. Dairy Export Council, thank you NMPF member cooperatives, thank you, NEXT Program, and most all thank you, dairy farmers, for keeping this momentum going.

All this, of course, isn’t meant to give short shrift to the significant challenges ahead. At NMPF we are well aware of the workforce challenges facing dairy farms as a nationwide crackdown on illegal immigration disrupts agricultural workforces. Current trade success so far doesn’t mean policy upheaval can’t damage or reverse progress, nor that export momentum will stay the same if new trade policies don’t improve global access opportunities. And consumer confidence faces misinformation threats that only become more sophisticated.

But heading into August, when Congress goes back home and policymaking hits a temporary pause, we at NMPF couldn’t be prouder to represent a growing, thriving industry — not one that’s free from challenges, but one that meets the challenges at hand. Dairy’s momentum becomes our momentum. That momentum is significant. It augurs well for the months and years to come.


Gregg Doud

President & CEO, NMPF

 

NMPF’s Castaneda Explains for Dairy Radio Now the Importance of Investigation of Milk Powder Trade

NMPF’s executive vice president Jaime Castaneda explains for listeners of Dairy Radio Now why NMPF asked the Trump Administration to investigate the world trade in milk powders, and, in particular, the impact of Canada’s protectionist practices on U.S. producers. Castaneda and NMPF colleague Will Loux testified this week on the issue.

Little Change from April in May DMC Margin

The May DMC margin lost $0.02/cwt from a month earlier to $10.40/cwt, according to the DMC Decision Tool on the USDA Farm Service Agency website. The Tool had previously predicted the April margin to be the lowest for the year, but a large increase in the price of premium alfalfa hay, equivalent to $0.34/cwt of milk in the DMC feed cost formula, more than offset a $0.30/cwt increase in the May all-milk price, to $21.30/cwt, while much smaller, offsetting prices of corn and soybean meal could only bring the feed cost down by another $0.02/cwt.

The Decision Tool continues to show the DMC margin increasing steadily, now from May, to top out at $13.76/cwt in November and average $12.43/cwt for the year.

NMPF’s Galen Explains Importance of DMC Signup in 2025

NMPF’s senior vice president Chris Galen discusses why farmers not already enrolled in the Dairy Margin Coverage program should consider using the risk management tool this year. DMC is one of several options, including Livestock Gross Margin and Dairy Revenue Protection programs, that can be used in tandem.  The deadline for producers to sign up for the USDA program is Monday, March 31.

Diving in on Dairy’s Legislative Agenda

By Paul Bleiberg, Executive Vice President, Government Relations, National Milk Producers Federation
President Donald Trump and Vice President J.D. Vance have now taken their oaths of office, and the 119th Congress has been seated. While the opening weeks of a new Congress and presidency focus on nominations and organization, these important housekeeping processes will soon give way to a busy legislative session.

We know dairy is ready for an action-packed 2025. National Milk Producers Federation’s (NMPF) major legislative goals begins with passage of a five-year farm bill, but what makes up that bill for dairy is just as important.

First, enabling schools to offer whole and reduced-fat milk is paramount. Milk provides 13 essential nutrients and is the top source of calcium, potassium, phosphorus, and vitamin D for children ages 2 to 18. However, just last month, the Dietary Guidelines Advisory Committee’s Scientific Report reaffirmed that 88% of all Americans are under consuming dairy. The bipartisan Whole Milk for Healthy Kids Act, recently reintroduced in Congress, provides the solution. This bill would allow, but not require, schools to serve all varieties of milk, including whole and reduced-fat milk. A growing body of evidence demonstrates that dairy foods at all fat levels have a neutral or positive effect on health outcomes. NMPF strongly supports swift passage of this measure to solve a critical child nutrition problem.

This problem is made clearer by data. Accurate, transparent data drives strong public policymaking. And that brings up another NMPF policy priority: remedying the persistent lack of accurate data when it comes to the costs of manufacturing raw milk into processed dairy products, which denies stakeholders an essential tool for assessing how milk pricing formulas ought to be structured.

A fix lies in the Fair Milk Pricing for Farmers Act, a bipartisan bill to require USDA to conduct mandatory dairy manufacturing cost surveys every two years. This will equip all voices in the dairy industry with better data to help drive future dairy pricing conversations.

Ongoing discussions on dairy pricing are vital for an industry that continues to innovate and advance. But milk pricing isn’t the only area where innovation is necessary. On the farm, U.S. dairy farmers benefit from safe and effective feed ingredients that can boost productivity in their herds and support environmental stewardship. However, the Food and Drug Administration’s (FDA) current outdated review process for these ingredients hinders their timely approval and puts U.S. dairy farmers at a disadvantage with their global competitors. NMPF supports the bipartisan Innovative FEED Act, first introduced in 2023, to create a safe but expeditious process for FDA to review these products to help farmers make important gains and stay competitive.

These are just a handful of the major legislative efforts NMPF seeks to advance. Each of these bipartisan bills made headway last year as the House and Senate began their respective farm bill processes. With the new Congress getting ready to produce results, dairy stands ready to get these important priorities signed into law.

r of choice.


This column originally appeared in Hoard’s Dairyman Intel on Feb. 6, 2025.