Dairy Industry News Roundup: Week of December 13-19, 2025

# Dairy Industry News Roundup: Week of December 13-19, 2025 Welcome to this week's roundup of the most important news and developments in the dairy industry. Here are the top stories from December 13-19, 2025. --- ## 1. Whole Milk for Healthy Kids Act Passes Congress, Heads to President's Desk The **Whole Milk for Healthy Kids Act** cleared its final hurdle this week as the House passed the bipartisan legislation, sending it to President Trump's desk for signature. The bill restores whole and reduced-fat milk to school cafeterias after a **13-year ban**. Key provisions of the legislation: - Allows schools to serve whole milk (3.25% fat) and 2% milk - Excludes milk's saturated fat from USDA's 10% cap for school meals - Maintains availability of all milk fat levels as parental choice The Senate passed the bill unanimously on November 20, and the House followed with strong bipartisan support. Industry groups including NMPF and IDFA have championed this legislation for years, arguing that full-fat dairy provides essential nutrition for growing children. *Read more:* [Congress.gov - H.R. 649](https://www.congress.gov/bill/119th-congress/house-bill/649) --- ## 2. Wisconsin Confirms First HPAI Case in Dairy Herd Wisconsin joined the growing list of states dealing with **Highly Pathogenic Avian Influenza (HPAI)** in dairy cattle this week, confirming its first positive herd. The detection was made through routine bulk tank testing under USDA's National Milk Testing Strategy. Current national HPAI status: - Wisconsin becomes the 17th state with confirmed dairy cases - California continues to lead with 771+ affected herds - 43 reinfections confirmed in California (herds testing positive after clearance) - Federal bulk tank testing requirements remain in effect for affected regions USDA and state officials are working closely with the affected farm on quarantine protocols and monitoring neighboring operations. *Read more:* [USDA APHIS HPAI Information](https://www.aphis.usda.gov/livestock-poultry-disease/avian/avian-influenza/hpai-detections/livestock) --- ## 3. Processing Investment Boom: $11 Billion and Growing **NMPF President & CEO Gregg Doud** highlighted the historic wave of dairy processing investment at an industry event this week, noting more than **$11 billion in new plant investment** currently underway nationwide. Recent major announcements and developments: - **Chobani**: $500 million expansion of Twin Falls, Idaho facility - **Chobani**: Broke ground on $1.2 billion processing plant in Rome, New York - **Walmart**: Opened $350 million milk plant in Georgia (December 2) - **Hiland Dairy**: Tyler, Texas expansion 70% complete, opening April 2026 With over $10 billion in new processing capacity expected to be operational by 2027, demand for milk and components continues to strengthen, providing a buffer against current price pressures. *Read more:* [NMPF News](https://www.nmpf.org/latest-news/) --- ## 4. U.S. Dairy Exports Set Records in 2025 U.S. dairy exports continue their strong trajectory, with **midyear 2025 totals reaching $4.72 billion**—a 15% increase in milk solids equivalent volume compared to the same period in 2024. Export highlights: - **May 2025**: Record 114 million pounds of cheese exported - **Japan**: +24% growth - **South Korea**: +20% growth - **Central America**: +23% growth - **South America**: +47% growth The U.S. remains on track to set new cheese export records for 2025, with strong demand from Asian and Latin American markets offsetting weakness in some traditional destinations. *Read more:* [U.S. Dairy Export Council](https://www.usdec.org/) --- ## 5. Butterfat Records Continue for Fourth Consecutive Year Milk component levels continued their upward trajectory, with **butterfat setting new records for the fourth consecutive year** according to Federal Milk Marketing Order data. 2025 component performance: - **Butterfat**: 4.23% nationwide average (record high) - **Protein**: 3.29% (up from 3.27% in 2024) - Strong component levels driving producer premiums despite lower milk prices The updated FMMO skim milk composition factors that took effect December 1 better reflect these modern milk composition levels, benefiting producers in component-based pricing orders. *Read more:* [USDA AMS Federal Milk Marketing Orders](https://www.ams.usda.gov/rules-regulations/moa/dairy) --- ## 6. Farm Technology Adoption Accelerates The **2025 Farm Journal State of the Dairy Industry** report released this week reveals significant growth in technology adoption across U.S. dairies. Key findings: - **Two-thirds** of dairies now use at least one form of feeding technology - **Health monitoring collars and ear tags** remain the most prevalent technologies - Data-driven decision making expanding across operations of all sizes - Larger operations leading adoption but mid-size dairies catching up The report also found that over two-thirds of producers experienced profitability over the past five years, with more than half planning expansion within the next five years. *Read more:* [Farm Journal Dairy](https://www.dairyherd.com/) --- ## 7. Cull Cow Prices Remain at Record Levels **Cull cow prices** continued to provide additional revenue opportunities for dairy producers, with the 2025 average (beef and dairy combined) reaching **$157 per hundredweight** in July—up $36 from December 2024 and representing record-high levels. Market factors: - Tight beef cattle supplies supporting cull cow values - Beef-on-dairy crossbreeding increasing calf values - Replacement dairy heifer prices at $2,660+/head (record highs) - Dairy heifer inventory down ~40,000 head year-over-year These elevated cull values are helping offset some of the margin pressure from declining milk prices. *Read more:* [USDA Livestock, Dairy, and Poultry Outlook](https://www.ers.usda.gov/publications/pub-details/?pubid=107753) --- ## 8. New Administration Signals Dairy Labor Priorities USDA Secretary-designate **Brooke Rollins** addressed dairy industry labor concerns this week, pledging to seek federal changes to rules and regulations in coordination with the departments of Labor and Homeland Security. Key quotes and priorities: - "We are acutely aware of the unique labor needs of the dairy industry" - Focus on streamlining H-2A visa processes for dairy operations - Commitment to addressing year-round labor needs (vs. seasonal programs) - Coordination with Homeland Security on workforce access Labor availability and costs remain top concerns for dairy producers heading into 2026. *Read more:* [USDA Newsroom](https://www.usda.gov/media/press-releases) --- ## Market Snapshot: Week Ending December 19, 2025 | Indicator | Price/Value | Change | |-----------|-------------|--------| | Class III Milk (Dec futures) | ~$15.50/cwt | Stable | | Class IV Milk (December est.) | ~$14.00/cwt | Slight recovery | | CME Butter | ~$2.55/lb | Up from week prior | | CME Cheese (blocks) | ~$1.70/lb | Steady | | CME Dry Whey | ~$0.74/lb | Strong protein demand | | Corn (Feed) | ~$4.55/bu | Favorable for margins | | Replacement Dairy Cow | $2,660+/head | Record highs continue | | Cull Cow Value | $157/cwt | Near record levels | --- ## Looking Ahead **Key dates to watch:** - **December 20:** Last Global Dairy Trade auction of 2025 (Event 395) - **Late December:** Expected presidential signature on Whole Milk for Healthy Kids Act - **December 31:** USDA announces final December class and component prices - **January 2026:** 2026 Zisk Report outlook released **Industry priorities:** - Monitoring HPAI spread following Wisconsin's first case - Preparing for new processing capacity coming online in 2026 - Navigating continued margin pressure despite low feed costs - Positioning for potential policy changes under new administration --- *Stay informed with Therio's weekly dairy industry roundups. 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