U.S. milk production kicked off 2026 on a high note amid strong milk cow numbers and milk per cow. Output totaled 19.81 billion pounds in January, up 3.2 percent year-over-year, and a record for January, according to the USDA’s Milk Production report on Friday.

Milk production in Kansas increased by 26 percent, while output rose nearly 11 percent in North Dakota. The largest production losses compared to a year ago were in Washington (-6.1 percent) and New Mexico (-3.8 percent).

The number of milk cows in the U.S. totaled 9.58 million head in January, up 2 percent from the previous year. Milk per cow rose 24 pounds from January 2024 to 2,068 pounds.

The USDA said milk cow numbers are expected to fall in 2026 despite low feed costs.

Near record trade
U.S. dairy exports surged 15 percent in 2025 to $9.51 billion, according to the latest U.S. Census data released on Thursday. That compares to the record $9.55 billion set in 2022. Mexico was the top trade destination last year in terms of export value ($2.6B), followed by Canada ($1.3B). Total exports by volume were 5 percent higher at 2.79 million metric tons.

Exports experienced broad-based growth across multiple regions. Growth was observed in export value for shipments to East Asia (16 percent), South America (14 percent), Central America (19 percent), the Middle East (48 percent), and North Africa (106 percent).

Contributing to that growth was higher demand for higher-fat products. Butter and milk fat exports grew by about 165 percent, while milk powder shipments grew by 56 percent. Additionally, cheese exports posted solid gains of 20 percent.

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