Dairy Industry News Roundup: Week of November 29 - December 5, 2025

# Dairy Industry News Roundup: Week of November 29 - December 5, 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 29 - December 5, 2025. --- ## 1. Walmart Opens $350 Million Milk Processing Plant in Georgia Walmart celebrated the grand opening of its **second owned-and-operated milk processing facility** in Valdosta, Georgia on December 2. The $350 million investment creates more than 400 jobs and will supply milk to over 650 Walmart and Sam's Club locations across the Southeast. The 300,000+ square-foot facility will process gallon and half-gallon milk in multiple varieties (whole, 2%, 1%, skim, and 1% chocolate) under the Great Value and Member's Mark brands. All milk is sourced directly from local dairy farmers throughout the Southeast. This is part of Walmart's broader strategy to control supply chains for price-sensitive commodities. The retailer also operates a milk plant in Fort Wayne, Indiana (opened 2018), with a third facility planned for Texas in 2026. *Read more:* [Walmart Corporate News](https://corporate.walmart.com/news/2025/12/02/walmart-opens-second-owned-and-operated-milk-processing-facility-in-valdosta-georgia-creating-more-than-400-new-jobs) --- ## 2. USDA Mandates Nationwide Milk Testing for Bird Flu The USDA's **National Milk Testing Strategy** went into effect this week, requiring mandatory testing of raw milk for H5N1 bird flu. The federal order, announced December 6, represents a significant escalation in efforts to monitor and contain the virus in dairy herds. Initial testing is focused on six states: California, Colorado, Michigan, Mississippi, Oregon, and Pennsylvania. Dairy farms, bulk milk transporters, transfer stations, and processing facilities must now share unpasteurized milk samples with USDA upon request. As of this week, **over 720 dairy herds** across 15 states have been confirmed infected with H5N1, with nearly 500 herds in California alone. The testing program aims to quickly identify affected herds and enhance biosecurity measures. *Read more:* [USDA APHIS Testing Information](https://www.aphis.usda.gov/livestock-poultry-disease/avian/avian-influenza/hpai-livestock/testing) --- ## 3. California Bird Flu Emergency Continues as Cases Spread California's dairy industry remains under a **state of emergency** as H5N1 bird flu cases continue to spread. Governor Gavin Newsom declared the emergency in mid-December as the virus moved from the Central Valley into Southern California dairy farms. Key statistics as of this week: - **766 total infected dairies** in California, with 630 recovered - **36 confirmed human cases** in California (mostly farmworkers with mild symptoms) - California represents roughly three-quarters of all affected U.S. dairy herds The state has established the largest testing and monitoring system in the nation and distributed millions of pieces of personal protective equipment to dairy workers. All recovered dairies remain on a surveillance list for monthly testing. *Read more:* [California Department of Food and Agriculture](https://www.cdfa.ca.gov/AHFSS/Animal_Health/HPAI.html) --- ## 4. Iowa Farmland Sets New State Record at $32,000 Per Acre A 35.5-acre parcel in Sioux County, Iowa sold for **$32,000 per acre** on December 1—setting a new state record for farmland auctions. The sale, conducted by Zomer Company Realty & Auction, saw a neighboring farmer acquire the property with higher-than-average CSR2 soil ratings. The previous Iowa record was $30,000 per acre, also in Sioux County, set in November 2022. Sioux County consistently posts some of Iowa's highest farmland values, driven by competition from livestock and dairy operations. Despite the record price, market analysts note that auction volumes have declined for three consecutive years. Lower-quality farms are seeing more no-sales, while premium parcels continue to draw aggressive competition from operational buyers. *Read more:* [AgWeb Farmland News](https://www.agweb.com/news/business/farmland/iowa-farmland-sale-sets-new-state-record-32-000-acre) --- ## 5. FMMO Skim Milk Composition Changes Take Effect December 1 Updated **Federal Milk Marketing Order (FMMO) skim milk composition factors** went into effect on December 1, 2025. The new standards better reflect current milk composition: | Component | Previous Standard | New Standard (Dec 1, 2025) | |-----------|------------------|---------------------------| | Protein | 3.1% | 3.3% | | Other Solids | 5.9% | 6.0% | | Nonfat Solids | 9.0% | 9.3% | Producers in orders that price milk on skim milk pounds (Appalachian, Southeast, Florida, Arizona) will see increased skim milk values. This is part of the most comprehensive FMMO overhaul in over 20 years, following the June 2025 implementation of the "higher-of" Class I pricing formula and updated make allowances. *Read more:* [USDA AMS Federal Milk Marketing Orders](https://www.ams.usda.gov/rules-regulations/moa/dairy) --- ## 6. McCarty Family Farms Honored at MILK Business Conference **McCarty Family Farms** of Rexford, Kansas received the **2025 Leader in Technology Award** at the MILK Business Conference in Las Vegas this week. The fourth-generation dairy operation has transformed into a 20,000-cow high-tech operation driven by innovation, data, and bold decision-making. Key innovations at McCarty Family Farms include: - Two 120-stall DeLaval E500 rotary milking systems - Climate-controlled tunnel-ventilated free-stall barns - On-site milk condensing plant with ultrafiltration technology - Anaerobic digesters generating 450 million BTUs of renewable energy daily The farm also operates the **Judy McCarty Dairy Learning Center**, which has welcomed nearly 1,800 students and 6,600+ total visitors from 48 states and 37 countries in the past year. *Read more:* [Dairy Herd Management](https://www.dairyherd.com/news/risk-revolution-mccarty-family-farms-named-2025-leader-technology-award-winner) --- ## 7. Class I Base Price Increases $1.46 for December The USDA announced the **December 2025 Class I base price at $18.21 per hundredweight**, an increase of $1.46 from November. The base skim milk price also rose $2.12 to $12.74 per cwt. Meanwhile, Class III milk futures remain under pressure, recently hitting $15.77 per cwt—the lowest since April 2024. The divergence between fluid milk prices and manufacturing milk prices reflects ongoing market imbalances as cheese production capacity continues to expand. For 2025 overall, the all-milk price is forecast to average around $22.60 per cwt, though 2026 projections point to lower prices as milk production continues to grow. *Source:* [USDA Dairy Market News](https://www.ams.usda.gov/mnreports/dymadvancedprices.pdf) --- ## Market Snapshot: Week Ending December 5, 2025 | Indicator | Price/Value | Change | |-----------|-------------|--------| | Class III Milk | $16.05/cwt | ↓ 6.09% (month) | | Class I Base | $18.21/cwt | ↑ $1.46 (vs Nov) | | CME Block Cheddar | ~$1.54/lb | Near 19-month lows | | CME Dry Whey | $0.78/lb | Strong demand | | Conventional Gallon (Retail) | $2.79 | Stable | | Corn (Feed) | ~$3.90/bu | Near 4-year lows | --- ## Looking Ahead **Key dates to watch:** - **December 31:** USDA announces final December class and component prices - **Early January:** Expected release of updated Dietary Guidelines - **January 2026:** Monitor for bird flu spring reinfection patterns **Industry priorities:** - Continued expansion of processing capacity ($8B+ investment nationally) - Export market development, especially Mexico - Biosecurity and HPAI containment efforts - Risk management tools as margins tighten in 2026 --- *Stay informed with Therio's weekly dairy industry roundups. 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