Dairy Industry News Roundup: Week of February 14 - February 20, 2026

# Dairy Industry News Roundup: Week of February 14 - February 20, 2026 Welcome to your weekly dairy industry briefing! This was a significant week on the trade front, highlighted by a landmark U.S.-Taiwan agreement that eliminates tariffs on all American dairy products. USDA also announced a $263 million Section 32 purchase with $148 million earmarked for dairy, Global Dairy Trade prices continued their 2026 rally, and the American Dairy Coalition raised the flag on farm data privacy. Here are the top stories from February 14 through February 20. --- ## From the Therio Team This Week ## 1. USDA Announces $148 Million in Dairy Purchases On February 19, USDA Secretary Brooke Rollins announced a $263 million Section 32 food purchase, with $148 million dedicated to dairy products. The dairy allocation includes $75 million for butter (the first major butter purchase in five years), $33 million for cheese, and additional purchases of milk and other dairy products. The $148 million figure matches the exact amount requested by the National Milk Producers Federation (NMPF) in a November 2025 letter to USDA. These purchases will flow through The Emergency Food Assistance Program (TEFAP) to food banks and nutrition programs across the country. With Class III prices sitting at just $14.59/cwt in January and margins tightening for many operations, this is a meaningful signal of support for producers heading into what is shaping up to be a challenging first half of 2026. *Read our full coverage:* [USDA Announces $148 Million in Dairy Purchases as Part of $263 Million Food Buy](/news/usda-announces-148-million-dairy-purchases-263-million-food-buy) --- ## 2. World Ag Expo 2026 Recap: Therio on the Ground in Tulare In case you missed it, Therio co-founders Logan and Greg spent two days at the 59th annual World Ag Expo in Tulare, California (February 10-12), connecting with companies across the dairy technology landscape. From data and analytics leaders like [AgriTech Analytics](/companies/agritech-analytics) and electrical safety specialists [PrevTech Innovations](/companies/prevtech-innovations) to calf health innovators like [First Defense Calf Health](/companies/first-defense-calf-health), herd management leaders like [CowManager](/companies/cowmanager), and [Ever.Ag](/companies/ever-ag), the conversations reinforced a clear theme: the dairy industry is ready for better data, better connectivity, and better tools that work together seamlessly. *Catch the full daily updates:* [World Ag Expo 2026: Live Updates from Tulare](/news/world-ag-expo-2026-live-updates) --- ## Other Industry News ## 3. U.S.-Taiwan Trade Deal Eliminates All Dairy Tariffs The biggest trade story of the week: the U.S. and Taiwan signed a comprehensive Agreement on Reciprocal Trade that eliminates tariffs on all U.S. dairy products entering Taiwan. The deal also protects common cheese names like parmesan, cheddar, and mozzarella from EU-style geographical indication restrictions. **Why this matters for dairy:** | Metric | Value | |--------|-------| | U.S. dairy exports to Taiwan (2025) | $111.2 million (+3% YoY) | | Taiwan total dairy imports (2025) | Over $1 billion | | Taiwan rank for U.S. fluid milk exports | 3rd largest destination | Previously, the U.S. captured only a small fraction of Taiwan's billion-dollar dairy import market. With tariffs eliminated, American exporters gain a significant competitive advantage over EU suppliers, who continue to face tariff barriers. NMPF President Gregg Doud said it well: "Each deal to reduce barriers and expand market access strengthens American dairy farms." Combined with the Latin American trade deals finalized earlier this month, U.S. dairy trade policy is on an aggressive expansion track in 2026. *Read more:* [Cheese Reporter](https://cheesereporter.com/news/2026/02/19/us-taiwan-trade-deal-provides-preferential-market-access-for-us-dairy-products-preserves-common-cheese-names/) --- ## 4. Global Dairy Trade Prices Rally Again The February 18 Global Dairy Trade (GDT) auction delivered another strong result, with the price index climbing 3.6%. This marks the fourth consecutive positive auction in 2026, pushing the index up 19% since the start of the year. **Auction highlights:** | Product | Price Change | |---------|-------------| | Butter | +10.7% | | Lactose | +7.8% | | Mozzarella | +5.0% | | Anhydrous Milk Fat | +3.8% | | Skim Milk Powder | +3.0% | | Whole Milk Powder | +2.5% | Butter led the way with a dramatic 10.7% jump, reflecting strong global demand and tightening supply. Whole milk powder has now increased $545 (17%) since January, strengthening farmgate milk price forecasts in New Zealand toward NZ$9.68/kgMS. The sustained rally is a positive signal for global dairy markets, though the disconnect between rising international prices and soft U.S. domestic prices remains a story to watch. *Read more:* [Agriland](https://www.agriland.ie/farming-news/positive-momentum-for-gdt-continues-as-price-index-climbs-3-6/) --- ## 5. Dairy Farmers Push Back on Data Demands The American Dairy Coalition (ADC) is raising important questions about farm data privacy. Dairy farmers across the country are reporting that milk processors and buyers are requesting detailed operational data, including herd size, production figures, feed rations, and energy usage, often framed as "voluntary" sustainability reporting. **What has producers concerned:** - Lack of clear data ownership rules once information is shared - Fear that non-compliance could threaten market access - No legal protections for proprietary farm information comparable to medical or financial data - Questions about whether sustainability data requirements are truly voluntary The ADC has launched an anonymous survey to document the scope and cost of these data requests and set up a confidential intake line for farmers to report concerns. The organization is calling for stronger legal protections, similar to a "Farmers' Bill of Rights" for farm-level data. This is a conversation that will only grow louder as precision agriculture, IoT devices, and sustainability reporting become more central to dairy operations. *Read more:* [eDairy News](https://en.edairynews.com/dairy-farmers-push-back-on-data-demands/) --- ## 6. Is Dairy Headed Into Another Down Year? That is the question on many producers' minds as 2026 unfolds. Analyst Robin Schmahl of AgMarket.net put it bluntly: the industry is "heading into another tough year without a clear driver for stronger prices." **The supply side of the equation:** - U.S. dairy herd at **9.57 million head**, the highest level since 1993 - 2026 milk production forecast at **234.5 billion pounds** (+1.4% from 2025) - Beef-on-dairy economics continue incentivizing producers to keep older cows in production **The price pressure:** - January Class III came in at just **$14.59/cwt** (down $1.27 from December) - USDA forecasts a 2026 all-milk average of **$18.95/cwt**, down roughly $2-3 from 2025 - First half expected to see the weakest prices, with potential recovery in Q3-Q4 **The silver linings:** - Beef-on-dairy revenue effectively adding $4-5/cwt equivalent to operations - Replacement heifer inventories at a 20-year low (3.905 million head), which could eventually constrain production - Strong dairy protein demand driven by high-protein diet trends - U.S. dairy products remain competitively priced on the global stage The consensus is that this is not a multi-year slump, but producers should plan for tight margins through at least the first half of the year. Locking in feed costs while corn and soybean meal remain relatively cheap is a smart move right now. *Read more:* [Dairy Herd Management](https://www.dairyherd.com/news/business/dairy-headed-another-down-year) --- ## 7. Fonterra Breaks Ground on $75 Million Butter Plant Expansion On the global front, New Zealand dairy giant Fonterra has broken ground on a NZ$75 million (approximately US$45 million) expansion of its butter production facility at Clandeboye in South Canterbury. The project will add capacity of up to 50,000 metric tonnes per year and is part of Fonterra's broader $1 billion investment plan focused on high-value dairy products. The expansion comes after Fonterra sold its iconic consumer brands (Mainland, Anchor) to Lactalis for $4.22 billion, signaling a strategic shift toward higher-margin ingredients and foodservice markets. The new butter line is expected to produce its first product by April 2027. With global butter prices on the rise (up 10.7% at this week's GDT auction alone), the timing makes strategic sense. *Read more:* [Fonterra](https://www.fonterra.com/nz/en/our-stories/articles/fonterra-breaks-ground-on-clandeboye-butter-plant-expansion.html) --- ## Market Snapshot: Week Ending February 20, 2026 | Indicator | Price/Value | Notes | |-----------|-------------|-------| | GDT Price Index (Feb 18) | +3.6% | 4th consecutive gain in 2026 | | GDT Butter | +10.7% | Strongest performer | | GDT WMP | +2.5% | Up 17% since Jan 1 | | Class III (January actual) | $14.59/cwt | Down $1.27 from December | | Class IV (January actual) | $13.55/cwt | Down $0.09 from December | | All-Milk Price Forecast (2026) | $18.95/cwt | Down ~$2-3 from 2025 | | U.S. Dairy Herd | 9.57M head | Highest since 1993 | | Milk Production Forecast (2026) | 234.5B lbs | +1.4% YoY | | USDA Section 32 Dairy Purchase | $148 million | Includes $75M for butter | | DMC Enrollment Deadline | February 26, 2026 | Less than 1 week remaining | --- ## Looking Ahead **Next week:** - **February 26, 2026:** Dairy Margin Coverage enrollment deadline. Contact your local FSA office if you have not enrolled yet. Enhanced coverage now includes Tier 1 up to 6 million pounds and a 25% premium discount for the 6-year lock-in option (2026-2031). - **March 3, 2026:** Next Global Dairy Trade auction **Key dates ahead:** - **March 2026:** Next WASDE report with updated price forecasts - **July 1, 2026:** USMCA mandatory review deadline **What to watch:** - Implementation timeline for the U.S.-Taiwan dairy trade agreement (still requires Taiwan legislative approval) - Whether the USDA's $148 million dairy purchase provides meaningful price support in the near term - February milk production data, as the large herd continues to drive record output - Farm data privacy developments as the American Dairy Coalition gathers producer input --- *Stay informed with our weekly dairy industry roundups. For questions or tips, reach out at [info@therio.ai](mailto:info@therio.ai).*