Milk Prices Are Rising Faster Than Feed Costs

An article on Hoards Dairyman

Milk revenue over feed cost is at its highest margin since last September at $10.62 per hundredweight (cwt.), according to data fromthe Dairy Margin Coverage (DMC) program. Although feed costs were climbing due to conflict in the Middle East, the All-Milk pricehas made significant gains. This is especially true in the Class IV space, since the lows at the beginning of the year with strong milkand milk component production outpacing the rise in feed costs.

Climbing nearly $5 per cwt., the All-Milk price moved from a January low of $17.50 to $21.30 in May. That represents the highestprices since this time last year. On the flip side, corn and alfalfa hay prices are also at the highest levels since May 2025 at $4.48 per bushel and $247 per ton, respectively. What’s most interesting is that soybean meal (SBM) costs at $339 per ton haven’t been thispricey since October 2024 – the most recent occasion of SBM surpassing $340 per ton.

Final feed cost calculations have consistently been over $10 per cwt. since March and likely will roll back slightly over the comingmonths. The recently released June acreage report shows mostly negligible changes and strong feed stocks from compoundingyears of strong crop yields.

For the full article click here