Dairy Industry News Roundup: Week of January 17-23, 2026

# Dairy Industry News Roundup: Week of January 17-23, 2026 Welcome to your weekly dairy industry briefing! This week brought a milestone signing as whole milk officially returns to American schools after more than a decade, while the industry grapples with continued price pressure and global oversupply dynamics. Here are the top stories from January 17 through January 23. **Heading to World Ag Expo?** The Therio team will be in Tulare, CA from February 10-12. [Schedule time to meet with us](https://calendly.com/therio) or email us at [info@therio.ai](mailto:info@therio.ai). --- ## From the Therio Team This Week ## 1. Dairy's Generational Reset The next generation of dairy farmers does not view technology as optional or novel. They expect it to be infrastructure. In this week's opinion piece, Therio Co-Founder Logan Snyder explores how digitally native farmers are reshaping expectations for the entire industry. These producers grew up with smartphones, cloud computing, and instant data access. They expect the same seamless experience from their herd management software, parlor systems, and data platforms. When technology falls short of consumer-grade expectations, they notice immediately. *Read more:* [Dairy's Generational Reset: How Digitally Native Farmers are Reshaping the Industry](/news/dairys-generational-reset) --- ## 2. World Ag Expo 2026: The Complete Dairy Industry Primer World Ag Expo returns to Tulare, California from February 10-12, 2026, and we've published the definitive guide for dairy industry attendees. Our comprehensive primer covers everything from the Farm Credit Dairy and Livestock Center to the top dairy-specific exhibitors, seminars, and innovations to watch. The guide includes practical details on parking, shuttles, lodging options (with direct booking links), and the best local restaurants and wineries for networking dinners. Whether you're a first-time attendee or an Expo veteran, this resource will help you maximize your time at the world's largest outdoor agricultural show. *Read more:* [World Ag Expo 2026: The Complete Dairy Industry Primer](/news/world-ag-expo-2026-complete-dairy-industry-primer) --- ## 3. High-Oleic Soybeans Transform Dairy Feed Economics Michigan State University research is generating significant industry buzz this week. Scientists have discovered that high-oleic soybeans can improve milk fat and protein levels within just three days of feeding, a remarkably fast response that challenges conventional nutrition assumptions. Early adopters like Preston Farms in Michigan have dedicated 400 acres to the crop and report saving tens of thousands of dollars monthly on feed costs. Researchers describe it as a "once-in-a-generation discovery" with potential to reshape dairy nutrition economics industry-wide. *Read more:* [High-Oleic Soybeans Have the Potential to Transform Dairy Feed Economics](/news/high-oleic-soybeans-transforming-dairy-feed-economics-msu-research) --- ## 4. U.S. Dairy Herd Hovers Near 30-Year High The U.S. dairy herd has climbed to approximately 9.5 million head, the highest level since the early 1990s. Our analysis explores why the herd continues expanding even as milk prices decline: beef-on-dairy breeding patterns are now contributing $4 to $5 per hundredweight to farm revenues, fundamentally changing the economics of culling decisions. This dynamic creates an unusual market situation where producers have less incentive to reduce cow numbers in response to low milk prices, potentially prolonging the current oversupply environment. *Read more:* [U.S. Dairy Herd Hovers Near 30-Year High as Beef-on-Dairy Economics Reshape Industry](/news/us-dairy-herd-hovers-near-30-year-high-beef-on-dairy-economics) --- ## Other Industry News ## 5. Whole Milk for Healthy Kids Act Signed Into Law The marquee story of the week arrived on Tuesday, January 14, when President Trump signed the **Whole Milk for Healthy Kids Act** into law, ending a 14-year restriction on higher-fat milk in school cafeterias. **What the law does:** - Schools in the National School Lunch Program can now serve **whole milk and 2% milk** in addition to skim and low-fat options - Milk fat is **exempt from federal saturated fat limits** in school meals - Fortified plant-based milk alternatives that meet nutritional standards are also permitted - Parents can request milk substitutes with a **simple written note** rather than medical documentation **The scope of impact:** - Approximately **30 million students** participate in the National School Lunch Program - Implementation guidance was issued immediately, with USDA Secretary Brooke Rollins stating schools could begin offering whole milk "within weeks" - The legislation passed Congress with **unanimous bipartisan support** in December 2025 The signing ceremony featured a revival of the iconic "milk mustache" imagery, with USDA posting promotional content across social channels carrying the tagline "Drink Whole Milk." The timing aligned with the 2025-2030 Dietary Guidelines for Americans, released earlier this month, which emphasize full-fat dairy as part of a healthy diet. Senators Roger Marshall (R-KS) and Peter Welch (D-VT), along with Representatives Glenn Thompson (R-PA) and Kim Schrier (D-WA), sponsored the bipartisan legislation. Dairy industry groups celebrated the signing as a long-overdue correction to policies that had contributed to declining milk consumption among students. *Read more:* [USDA Press Release](https://www.usda.gov/about-usda/news/press-releases/2026/01/14/whole-milk-back-president-trump-signs-whole-milk-healthy-kids-act) | [USDA Implementation Guidance](https://www.fns.usda.gov/nslp/wmfhka-implementation) --- ## 6. February Class I Prices Continue Decline USDA announced **February 2026 Class I milk prices** on Wednesday, January 22, revealing continued pressure on producer margins. **February pricing:** - **Class I Base Price:** $14.70 per hundredweight - **Class I Skim Milk Price:** $9.99 per hundredweight (down $1.18 from January) **2026 forecast adjustments:** - USDA now projects the **All-Milk Price at $18.25 per hundredweight** for 2026, down $0.50 from the prior forecast - This represents a significant decline from the 2025 average of $21.15 per hundredweight - Milk production is projected at 234.3 billion pounds for 2026 The price softness reflects elevated cow numbers (discussed in our herd analysis above), strong milk component levels from favorable weather conditions, and weakening domestic demand. Producers who enrolled in the expanded Dairy Margin Coverage program at higher coverage levels should begin receiving payments as margins fall below trigger thresholds. *Read more:* [USDA Advanced Prices Announcement](https://www.ams.usda.gov/mnreports/dymadvancedprices.pdf) --- ## 7. Global Milk Oversupply Pressures Prices The global dairy supply situation shows little sign of easing as 2026 begins. Major producing regions including the United States, European Union, New Zealand, and South America continue expanding output despite falling farmgate prices. **Supply dynamics:** - Production growth continues across major exporting regions - Farmgate price declines have not been sufficient to trigger meaningful herd reductions - Strong cull cow prices (driven by beef demand) provide producers an alternative revenue stream - Processors are shifting milk flows toward higher-margin products like cheese and whey proteins **Market signals:** - Buying activity picked up in early January, offering some hope that surplus volumes can be absorbed - The January Global Dairy Trade auctions showed improvement, though sustainability of gains remains uncertain - Inventory levels in key importing regions will influence demand patterns through the first half of 2026 Analysts expect the oversupply situation to persist through at least mid-2026, with any meaningful correction requiring either demand growth or more significant production cuts than currently anticipated. *Read more:* [Dairy Reporter](https://www.dairyreporter.com/Article/2026/01/22/global-milk-oversupply-persists-despite-demand-uptick/) --- ## 8. DMC Enrollment Deadline Approaches Dairy Margin Coverage enrollment for 2026 continues through **February 26, 2026**. With margins forecast to fall below payment triggers for at least five months (January through May), enrollment at higher coverage levels is expected to generate payments for participating operations. **Key program changes for 2026:** - **Tier 1 coverage increased** from 5 million to 6 million pounds - All operations establishing **new production history** based on 2021, 2022, or 2023 marketings - **Six-year lock-in option** (2026-2031) with 25% premium discount available Producers who have not yet enrolled should contact their local FSA office before the deadline. Given current price forecasts, the enhanced DMC program provides a meaningful safety net for operations managing through tight economics. *Read more:* [USDA FSA Dairy Margin Coverage](https://www.fsa.usda.gov/programs-and-services/dairy-margin-coverage-program/index) --- ## 9. Rethinking Labor Costs on Dairy Farms With margins compressed, industry publications are highlighting labor management as a key opportunity for cost control in 2026. Recent coverage emphasizes three primary strategies: **Automation investments:** - Robotic milking systems continue gaining adoption as labor costs rise - Automated feeding and manure handling reduce labor requirements - Sensor-based monitoring reduces time spent on routine observations **Workforce optimization:** - Cross-training employees for multiple roles increases scheduling flexibility - Incentive structures aligned with production metrics improve retention - Technology training helps existing staff become more productive **Outsourcing considerations:** - Contract heifer raising reduces on-farm labor needs - Custom harvesting and manure application services offer labor flexibility - Consulting relationships provide expertise without full-time staffing As milk prices remain low, operations that can reduce labor costs per hundredweight while maintaining productivity will be better positioned to manage through the current margin environment. *Read more:* [Dairy Herd](https://www.dairyherd.com/news/labor/rethinkingnbsp-labor-nbsp-3nbsp-waysnbsp-tonbsp-cutnbsp-costsnbsp-innbsp-2026) --- ## 10. Colombia Tariff Investigation Dismissed In positive trade news, Colombia terminated a 2024 subsidy investigation into U.S. milk powder imports on December 30, 2025, avoiding new tariffs on American dairy exports to the South American market. The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) worked to demonstrate that the case lacked merit, successfully defending market access for U.S. producers. Colombia represents an important export destination, and the dismissal preserves current trade flows. The outcome reinforces the importance of industry advocacy in maintaining and defending export markets during a period of global oversupply. *Read more:* [NMPF Newsletter](https://www.nmpf.org/newsletter/news-for-dairy-co-ops-january-2026/) --- ## Market Snapshot: Week Ending January 23, 2026 | Indicator | Price/Value | Change | |-----------|-------------|--------| | Class I Base Price (February) | $14.70/cwt | Announced 1/22 | | Class I Skim (February) | $9.99/cwt | Down $1.18 from January | | 2026 All-Milk Price Forecast | $18.25/cwt | Down $0.50 from prior forecast | | U.S. Dairy Herd | ~9.5 million head | 30-year high | | Nonfat Dry Milk (Grade A) | $1.18/lb | Up $0.014/lb | | Dry Whey (Extra Grade) | $0.78/lb | Up $0.038/lb weekly avg | | DMC Enrollment Deadline | February 26, 2026 | 5 weeks remaining | --- ## Looking Ahead **Key dates to watch:** - **Now through February 26, 2026:** Dairy Margin Coverage enrollment period - **February 10-12, 2026:** World Ag Expo in Tulare, California. **The Therio team will be there!** [Schedule time to meet with us](https://calendly.com/therio) or email us at [info@therio.ai](mailto:info@therio.ai). - **Coming weeks:** Schools begin implementing whole milk options under new law **Industry priorities:** - Enrolling in expanded DMC program before the February 26 deadline - Managing labor costs and operational efficiency during low-margin period - Evaluating feed strategies, including high-oleic soybean potential - Preparing for increased school milk demand as whole milk returns to cafeterias - Monitoring beef-on-dairy economics and their impact on herd size decisions --- *Stay informed with our weekly dairy industry roundups. For questions or tips, reach out at [info@therio.ai](mailto:info@therio.ai).*