U.S. milk production totaled 19.52 billion pounds in August, down 1 percent from July but 3.2 percent higher than August 2024, according to the USDA on Monday. 

The high output was driven by growing milk cow numbers and increased output per cow. The number of milk cows totaled 9.52 million head, up 1.9 percent from last year and 1.47 percent above the five-year average.

Milk output per cow decreased in efficiency from July, down 1.1 percent, but remains 1.3 percent higher than August 2024.

As of August, total production for the year reached 154.7 billion pounds. In 2024, production totaled 152.12 billion pounds, making 2025 on track for record-breaking milk production.

The year-over-year increase is consistent with trends from the last decade, which has seen WASDE milk production estimates increase from 201 billion pounds in 2013 to an estimated 230 billion pounds in 2025. Milk production forecasts for 2026 also increased to 231.3 billion pounds.

Dairy futures have fallen under immense pressure recently due to strong output, not just in fluid milk but in butter and cheese as well. Class III dairy milk futures traded near contract lows on Tuesday before finding buyers. Large U.S. supplies will likely keep a lid on prices.

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PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FUTURES TRADING INVOLVES SUBSTANTIAL RISK AND IS NOT SUITABLE FOR ALL INVESTORS.