U.S. Milk Production Increases by 4% Year-Over-Year Amid Herd Expansion

The U.S. Department of Agriculture's delayed report for September highlights a 4% year-over-year increase in milk production. This growth has been driven by a strategic expansion of the milking herd and enhancements in processing capacity. Economist William Loux from the U.S. Dairy Export Council and the National Milk Producers Federation noted that the sector added 235,000 milking cows, extending the productive lifespan of cows to four lactations, effectively increasing the herd size by 25%.

The USDA data shows that milk production across the 24 major dairy states reached 18.3 billion pounds in September. Production per cow also increased by 30 pounds compared to the previous year, with Michigan leading in efficiency at 2,260 pounds per cow. States such as Kansas, Georgia, and South Dakota reported the highest proportional increases in milk production, aligning with the opening of new processing facilities in key regions.

The report also indicates that the American dairy sector is in a period of high supply due to these strategic investments and farm management decisions, although significant production shifts are not expected until the second half of 2026 due to the current pricing environment.