U.S. milk production reached a record 231.5 billion pounds in 2025, according to the latest milk production data from the USDA on Friday. Output was up 2.5 percent from the previous year and reached the USDA’s final estimate from the latest WASDE report. In December, production was 19.57 billion pounds, up 4.4 percent year-over-year and maintaining a record for the 10th straight month.

The number of milk cows totaled 9.57 million head during the month, up 2.3 percent from December 2024. The U.S. milk cow herd rose by 212,000 head compared to a year ago. Much of that increase has been a result of investment in beef on dairy production. Meanwhile, increases in milking efficiencies have also contributed to record milk production.

Milk produced per cow in December averaged 2,045 pounds, up 2 percent year-over-year. The industry has experienced an 8 percent increase in production per cow over the past decade, according to annual USDA data.

Record milk production has led to suppressed prices over the past year. February Class III dairy milk futures fell to a fresh contract low of 14.80 cents a pound on Jan. 15. Prices rebounded from lows over the past couple of sessions, with the February contract surging to a two-month high of 16 cents on Friday.

Much of the move was likely speculative short-covering. Large domestic dairy supplies will likely keep a lid on prices.

The USDA also released its cold storage report on Friday, showing that butter inventories were lower year-over-year despite record production. Meanwhile, cheese inventories were slightly higher year-over-year.

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