Dairy Report Shows More Milk, Fewer Farms Ahead

(Photo courtesy of NRCS Texas)

LUBBOCK, TX – U.S. dairy farmers produced more milk in 2025, but the industry continued shifting toward fewer, larger herds. The NMPF and U.S. Dairy Export Council Dairy Economics Team say U.S. milk production reached 231.7 billion pounds, up 2.8 percent from 2024.

The report shows licensed dairy herds fell to 23,600 in 2025, down from 24,600 a year earlier. Average herd size increased to 397 cows, compared with 377 in 2024.

Milk production per cow also improved. U.S. output averaged 24,390 pounds per cow in 2025, while milkfat production per cow reached 1,054 pounds.

Prices were softer for producers. The U.S. all-milk price averaged $21.19 per hundredweight in 2025, down 6 percent from 2024.

The data point to a dairy sector producing more total volume with fewer farms and stronger per-cow output. That keeps efficiency in focus as margins and regional competition shape decisions in 2026.

Farm-Level Takeaway: Dairy producers should monitor milk prices, herd efficiency, and regional cost pressures as the industry continues to consolidate.