Dairy Industry News Roundup: Week of December 20-26, 2025

# Dairy Industry News Roundup: Week of December 20-26, 2025 Welcome to this week's roundup of the most important news and developments in the dairy industry. As we close out 2025, here are the top stories from December 20-26. > **From the Therio Team:** This week marks the official launch of Therio! Read our [Season's Greetings from the Co-Founders](/learn/seasons-greetings-from-therio) to learn more about our vision for the future of dairy technology. --- ## 1. Industry Mourns Gary Hanman, Founding CEO of Dairy Farmers of America The dairy industry lost a true pioneer this month with the passing of **Gary Hanman**, the founding CEO of Dairy Farmers of America, on December 5 at his home in Platte City, Missouri. He was 91 years old. Hanman was the unanimous choice to lead DFA when four regional dairy cooperatives merged in 1998, described as "probably the only person in the country who could have brought dairy farmers together." Under his leadership from 1998 to 2005, DFA grew from $7 billion to what is now $24 billion in annual sales. Key achievements: - Built infrastructure ensuring dairy farmers always had somewhere to ship their milk - Secured markets for over 11,500 dairy farm families through multiple crises - Established DFA as the first truly national dairy cooperative - Navigated the 2008 financial crisis and other industry downturns Randy Mooney, current DFA Chairman, praised him as "a dynamic figure and visionary in his work for American dairy farmers." Hanman's funeral was held December 27 at United Methodist Church of Platte City. *Read more:* [Dairy Herd - Gary Hanman Obituary](https://www.dairyherd.com/news/education/founding-ceo-dairy-farmers-america-passes) --- ## 2. Whole Milk for Healthy Kids Act Awaits Presidential Signature The **Whole Milk for Healthy Kids Act** has cleared Congress and now sits on President Trump's desk awaiting signature. The House passed the bill December 16 with overwhelming bipartisan support (330-99), following the Senate's unanimous passage on November 20. What the legislation does: - Allows schools to serve whole milk (3.25% fat) and 2% milk - Exempts milk's saturated fat from USDA's 10% cap for school meals - Relaxes non-dairy alternative requirements for parents - Ends a 13-year ban on whole milk in school cafeterias USDA Secretary-designate Brooke Rollins has indicated the administration will sign the bill, aligning with "Make America Healthy Again" and "Farmers First" initiatives. Once signed, individual school districts will decide when to add whole milk options, with implementation expected to begin in 2026. *Read more:* [Congress.gov - S.222](https://www.congress.gov/bill/119th-congress/senate-bill/222) --- ## 3. Final Global Dairy Trade Auction of 2025 Ends Down The last **Global Dairy Trade** auction of 2025 (Event 394, December 16) saw prices fall 4.4%, marking the ninth consecutive decline in the GDT Price Index. December 16 auction results: | Product | Price Change | Price | |---------|-------------|-------| | Butter | -12.4% | $5,169/tonne | | Anhydrous Milk Fat | -9.8% | Significant decline | | Whole Milk Powder | -2.4% | Moderate decrease | | Skim Milk Powder | -1.6% | Slight decrease | | Cheddar | +7.2% | $4,639/tonne | Rabobank researchers warn the global dairy market faces "a period of weaker commodity prices in the face of ample milk supplies into 2026 and exportable surpluses." Strong production growth across the EU, UK, US, and New Zealand continues to pressure international prices. The next GDT auction is scheduled for January 6, 2026. *Read more:* [GlobalDairyTrade Results](https://www.globaldairytrade.info/en/product-results/) --- ## 4. MMPA Acquires Leprino Foods Plant, Expands into Cottage Cheese **Michigan Milk Producers Association** announced a $122.68 million investment to acquire the former Leprino Foods plant in Remus, Michigan, and expand ultrafiltered milk capacity at its Ovid facility. Acquisition highlights: - **Remus plant**: First cottage cheese production for MMPA - **Investment**: $37.58 million for Remus, $32.5 million for Ovid expansion - **Jobs**: 76 new positions created - **State support**: $662,500 Michigan Strategic Fund grant The move responds to surging cottage cheese demand driven by high-protein diet trends. MMPA President & CEO Joe Diglio called it "a meaningful step forward in MMPA's long-term strategy." The Remus facility has historical significance—MMPA originally purchased it in 1983 before Leprino began operating it in 1987. The acquisition brings ownership back full circle after nearly 40 years. *Read more:* [MMPA Announcement](https://www.mimilk.com/mmpa-2025-expansion/) --- ## 5. Class I Base Price Rebounds in December The **Class I base milk price** for December 2025 rebounded to **$18.21 per hundredweight**, up $1.46 from November. This provides some relief heading into the new year after several months of pressure. Additional market factors: - Milk production forecast raised for 2025 based on higher cow inventories - Year-over-year production up in 20 states including Idaho, Texas, and New York - Combined increase of 789 million pounds in September alone - Component levels remain at record highs (butterfat 4.23%, protein 3.29%) *Read more:* [USDA Dairy Market News](https://www.ams.usda.gov/mnreports/dywweeklyreport.pdf) --- ## 6. 2026 Outlook: Another Profitable Year Expected The **2026 Zisk Report** indicates dairy producers expect another profitable year ahead, though success won't be equally distributed across all operations. Positive indicators for 2026: - $11 billion in new dairy-plant investment underway nationwide - Record-high replacement dairy cow prices signal confidence - Strong component premiums continue - Low feed costs improving margins - Export markets remain robust However, challenges persist including HPAI management, labor availability, and margin pressure from declining milk prices. Operations with strong fundamentals and technology adoption are expected to outperform. *Read more:* [Dairy Herd](https://www.dairyherd.com/) --- ## 7. FrieslandCampina Eyes Wisconsin Whey Protein Acquisition **Royal FrieslandCampina** announced intentions to acquire **Wisconsin Whey Protein**, expanding its footprint in the U.S. specialty protein market. Details of the transaction remain pending regulatory approval. The Dutch dairy cooperative continues its strategy of investing in high-value protein ingredients as demand for sports nutrition and functional foods grows globally. *Read more:* [Dairy Global](https://www.dairyglobal.net/industry-and-markets/dairy-diary-december-business-update-5/) --- ## Market Snapshot: Week Ending December 26, 2025 | Indicator | Price/Value | Change | |-----------|-------------|--------| | Class I Base (December) | $18.21/cwt | +$1.46 from Nov | | Class III Milk (Dec futures) | ~$15.50/cwt | Stable | | Class IV Milk (December est.) | ~$14.00/cwt | Slight recovery | | CME Butter | ~$2.55/lb | Softening | | CME Cheese (blocks) | ~$1.70/lb | Steady | | GDT Price Index | -4.4% | 9th consecutive decline | | Replacement Dairy Cow | $2,660+/head | Record highs | | Cull Cow Value | $157/cwt | Near record levels | --- ## Looking Ahead to 2026 **Key dates to watch:** - **Late December/Early January:** Expected presidential signature on Whole Milk for Healthy Kids Act - **January 6, 2026:** First Global Dairy Trade auction of the new year - **January 2026:** 2026 Zisk Report full outlook released - **February 11-13, 2026:** World Ag Expo in Tulare, California **Industry priorities for the new year:** - Implementing Whole Milk Act in school districts - Monitoring HPAI spread and biosecurity measures - Preparing for new processing capacity coming online - Navigating policy changes under new administration - Addressing labor and workforce challenges --- *From all of us at Therio, we wish you a peaceful holiday season and a prosperous 2026. Stay informed with our weekly dairy industry roundups—subscribe to our newsletter for updates delivered to your inbox.*