Are Butter Prices Bouncing Back?

An article on Dairy Herd Management

Last week, the USDA released the monthly Dairy Products Report. Most products reported higher production from last year with the most notable decline in production in whey protein concentrate, coming in at 38.8 million pounds produced, a reduction of 11 percent from 2025.

Total cheese output excluding cottage cheese was 1.27 billion pounds, which was 4.2 percent above last April and 0.3 percent above last month. Italian type cheese production totaled 556 million pounds which was 4.2 percent above April 2025 and 2.5 percent above March 2026. American type cheese production climbed 1.2 percent above last year at 490 million pounds, 0.4 percent less than March 2026.

Cheese production is sufficient to keep up with demand as of now. Usually, we see a small reduction in inventory by late summer, however milk supply is plentiful especially now that schools have let out for the summer. Manufacturers should have plenty of milk to keep production steady.

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