Dairy Industry News Roundup: Week of November 22-28, 2025

# Dairy Industry News Roundup: Week of November 22-28, 2025 Welcome to this week's roundup of the most important news and developments in the dairy industry. Here are the top stories from November 22-28, 2025. --- ## 1. Senate Passes Whole Milk for Healthy Kids Act in Unanimous Vote In a significant bipartisan victory for the dairy industry, the U.S. Senate unanimously passed the **Whole Milk for Healthy Kids Act** this week. The legislation would allow schools participating in federal nutrition programs to once again serve whole milk and 2% milk to students—options that have been restricted since 2010. The bill now heads to the House of Representatives, where it has strong bipartisan support. Industry advocates have long argued that full-fat dairy options are both nutritionally beneficial and preferred by students, potentially reducing milk waste in school cafeterias. "This is a win for students, farmers, and common sense nutrition policy," said NMPF leadership in a statement following the vote. *Read more:* [Dairy Herd](https://www.dairyherd.com/news/policy/whole-milk-returns-unanimous-senate-vote-big-win-schools-and-dairy) --- ## 2. Dairy Cow Numbers Decline for First Time Since December 2024 The October Milk Production report delivered a surprise: dairy cow numbers dropped by **7,000 head** from the previous month, marking the first decline in cow inventory since December 2024. This represents a notable shift after months of steady herd growth driven by favorable milk-to-feed price ratios. The pullback comes as milk prices have softened and high beef prices continue to make culling financially attractive. However, the overall herd remains larger than year-ago levels, with 9.15 million head in the 24 major dairy states—235,000 more than September 2024. Industry analysts are watching closely to see whether this signals the beginning of a longer-term herd contraction or merely a seasonal adjustment. *Source:* [USDA Milk Production Report](https://www.nass.usda.gov/Publications/Todays_Reports/reports/mkpr1125.pdf) --- ## 3. EPA and Army Corps Propose New WOTUS Regulations The Environmental Protection Agency and U.S. Army Corps of Engineers unveiled a new proposal for **Waters of the United States (WOTUS)** regulations this week. The proposed rule aims to clarify which waterways fall under federal jurisdiction following recent Supreme Court decisions that narrowed the scope of Clean Water Act protections. For dairy farmers, WOTUS regulations have significant implications for nutrient management, manure handling, and land use near streams, wetlands, and drainage ditches. Industry groups are reviewing the proposal and preparing comments for the public input period. The American Farm Bureau Federation urged careful consideration of the rule's impact on agricultural operations, noting that regulatory uncertainty around WOTUS has been a longstanding concern for producers. *Read more:* [AFBF News](https://www.fb.org/newsroom/) --- ## 4. USDA Opens New Sterile Fly Dispersal Facility to Combat Screwworm The USDA announced the opening of a new **sterile fly dispersal facility in Tampico, Mexico** as part of the ongoing effort to combat New World screwworm. The livestock pest, which can cause devastating losses in cattle populations, has seen periodic outbreaks in recent years. The facility will release millions of sterile male flies to prevent wild populations from reproducing—a proven eradication technique that has kept the pest largely at bay since the 1960s. USDA also extended deadlines for livestock disaster recovery assistance applications related to earlier screwworm incidents. *Source:* [USDA APHIS](https://www.aphis.usda.gov/aphis/ourfocus/animalhealth/animal-disease-information/cattle-disease-information/screwworm) --- ## 5. Strong Class I Demand Drives Regional Milk Markets Fluid milk markets remained robust heading into the Thanksgiving holiday week, with **Class I demand described as strong to very strong** across the Southeast and steady in the Northeast. Bottlers in the South reported shipping milk from other states to meet demand, reflecting tight supplies in some regions. Manufacturing facilities are using most contract loads, leaving less milk available for spot sales. The combination of seasonal demand, strong consumer purchasing, and production that has only modestly exceeded year-ago levels has kept fluid milk markets well-supported. Eastern region production remains seasonally strong, with component levels (butterfat and protein) performing well heading into the winter flush period. *Source:* [USDA Dairy Market News](https://www.ams.usda.gov/mnreports/dywweeklyreport.pdf) --- ## 6. Federal Milk Marketing Order Reforms Expected to Lower Prices Industry economists reminded producers this week that **Federal Milk Marketing Order (FMMO) reforms** scheduled to take effect in 2025 will decrease all-milk prices by approximately **30 cents per hundredweight** on average. The changes, approved following a lengthy national hearing process, update pricing formulas and make factors for milk components. While the reforms aim to modernize the system and improve fairness, they represent a meaningful reduction in producer returns that should be factored into 2025 financial planning. Producers are encouraged to review their marketing strategies and risk management tools as the new provisions take effect. *Read more:* [Progressive Dairy](https://www.agproud.com/articles/61560-dairy-market-outlook-2025-challenges-opportunities-and-policy-considerations) --- ## 7. Athian Reaches $18 Million in Sustainability Payments to Dairy Farmers In a significant milestone for sustainability initiatives, **Athian announced it has paid dairy farmers $18 million since 2024** for implementing emissions-reducing practices on their operations. The program rewards producers for verified reductions in greenhouse gas emissions through practices like improved manure management, feed efficiency optimization, and renewable energy adoption. The milestone was announced during industry sustainability discussions held in late November, where leaders shared progress on environmental commitments. Major dairy processors and food companies have increasingly partnered with platforms like Athian to help meet corporate sustainability pledges while providing additional revenue streams for participating farms. *Read more:* [Athian](https://www.athian.ai/) --- ## 8. Edge Launches Farmer-Led Greenhouse Gas Emissions Program A new initiative called **Edge** launched this week, offering a farmer-led approach to measuring and reducing greenhouse gas emissions on dairy operations. Unlike top-down sustainability programs, Edge emphasizes producer ownership of the process and data while providing tools for tracking and verifying emission reductions. The program reflects growing demand from downstream buyers for documented sustainability improvements, as well as farmer interest in maintaining control over how their environmental performance is measured and marketed. Several major cooperatives are evaluating the platform for potential rollout to member farms. *Source:* [Dairy Industry News](https://dairyindustrynewsletter.com/) --- ## 9. Retail Dairy Advertising Surges Ahead of Holiday Season Retail advertising for dairy products increased significantly during the week of November 22-28, with **conventional dairy ads up 18%** and **organic dairy ads up 19%** compared to the previous week, according to USDA's Agricultural Marketing Service retail survey. **Yogurt** was the most heavily advertised conventional dairy commodity, with ad counts rising 35% week-over-week. **Milk** led organic advertising volume. Notably, organic yogurt ads declined 90%, suggesting retailers are focusing promotional efforts on conventional options heading into the holiday season. The advertising surge reflects strong consumer interest in dairy products for Thanksgiving cooking and baking, as well as competitive positioning among major grocery chains. *Source:* [USDA Dairy Market News](https://www.ams.usda.gov/mnreports/dywweeklyreport.pdf) --- ## 10. $8 Billion+ in Dairy Processing Investments Continue Across U.S. The wave of dairy processing infrastructure investment continues, with **over $8 billion in projects** underway or announced nationwide. Key developments include: - **Walmart's $350 million facility** in Robinson, Texas, expected to be operational by 2026 - **Fairlife's $650 million fluid milk plant** in upstate New York, continuing expansion of the ultra-filtered milk brand - **Chobani's $1.2 billion dairy processing facility** in Rome, New York, which broke ground in April 2025 These investments are adding cheese, fluid milk, and specialty dairy processing capacity to absorb the increased milk production expected through 2026. Industry leaders view the expansion as positioning U.S. dairy for stronger export competitiveness and domestic market growth. *Read more:* [Dairy Herd](https://www.dairyherd.com/news/business/dairys-ambitious-future-11-billion-2026-and-global-supremacy) --- ## Key Takeaways for Dairy Producers **Policy Wins:** The Senate's unanimous passage of the Whole Milk for Healthy Kids Act represents meaningful progress on school milk policy, while new WOTUS regulations will require careful monitoring. **Market Conditions:** The first decline in cow numbers since late 2024 signals potential herd stabilization, though strong Class I demand and seasonal factors are supporting current milk markets. **Sustainability Opportunity:** Programs like Athian and Edge offer new revenue streams for producers willing to document emissions reductions—worth exploring as processor and retailer sustainability requirements expand. **Planning Ahead:** Factor in the 30 cents/cwt reduction from FMMO reforms when building 2025 budgets and marketing strategies. --- *Have news tips or stories you'd like to see covered in future roundups? Contact us at [greg@therio.ai](mailto:greg@therio.ai).* *Stay informed with Therio's Education Center—your source for dairy industry insights, best practices, and breaking news.*