Dairy Off To a Good Start in 2025

Today, I check in with Chris Galen, Senior Vice President of Member Services and Strategic Initiatives with the National Milk Producers Federation, for an update on a current state of the dairy economy.

“So far so good as we start the year; it looks like margins are still strong. Part of that is for better or worse due to the fact that feed grain prices, corn, and soybeans obviously have not had a great year so far, last six months or so. So if you're in the livestock business, as dairy farmers are, your input costs are lower because of the relatively trough in the price for feed grains and oil seeds.”

And as for milk prices.

“And in the meantime, the milk prices has been strong. Last year was a really good year for milk prices and margins. And we're starting off on the same path, the same trajectory in 2025 and at this point, looks to be still the case, obviously, if the economy slows down, if we have loss of export markets that extends, you know, for months or years, then it's a different ball game. But for now, we're looking at better times, or at least still continued good times in 2025.”

In addition, Galen says that the National Milk Board of directors is interested in bringing back the cooperatives working together program under a new name, but it would remain a farmer-funded market development program.