Order Reform Impacts Your Dairy

Article by Valerie Mason-Faith on Progressive Dairy

What’s next for dairy pricing? What does the road ahead look like? 2026 appears to be a year likely to bring global expansion and a temporary milk surplus, so staying grounded in your long-term purpose becomes even more critical. At the 2026 Pennsylvania Dairy Summit, Sara Dorland, managing partner at Ceres Dairy Risk Management, shared her insights on the global dairy landscape, dairy markets, the recent Federal Milk Marketing Order (FMMO) price reform and what all of this could mean for dairy producers.

Dorland reported that “2026 is a year in transition.” So far, there have been several factors perpetuating volatile dairy market conditions in 2026, including accelerated global milk growth, tightened margins, increased export competition, potential surplus, heightened protein demand and more milk volume moved into unreported dairy output.

“What all this means is we’re going to see a lot of volatility, which means markets are going to go up, and they’re going to come down. And while a lot of times we try to manage volatility, this volatility is also that thing that provides a lot of opportunity,” Dorland shared.

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