Dairy Industry News Roundup: Week of May 30 - June 5, 2026

# Dairy Industry News Roundup: Week of May 30 - June 5, 2026 Dairy spot markets displayed mixed action during the week of May 30, with butter prices averaging $1.60 per pound, up 1.5 cents from the prior week, while cheddar cheese blocks declined 2.0 cents to $1.65 per pound and nonfat dry milk dropped 0.8 cents to $2.12 per pound. USDA Federal Milk Marketing Order data showed 12.6 billion pounds of milk pooled from producers in April, down 13.4 percent year-over-year, while the weighted average statistical uniform price hit $19.11 per cwt, $0.25 higher than last year. Meanwhile, Texas reported its first HPAI case of 2026 on May 30, following clinical signs including sick cows and milk production drops confirmed at the National Veterinary Services Laboratory. --- --- ## 1. This Week From Therio The team is heads-down building this week. If you missed our recent long-form pieces from co-founder Greg Cochara, both are worth catching up on: - [Herdscripting 101: The Hidden Infrastructure Behind Every Dairy Treatment](/news/herdscripting-101) - [Interstate Movement of Dairy Cattle: The Compliance Maze Nobody Talks About](/news/interstate-movement-101) --- ## Industry News ## 2. CME Spot Markets Show Mixed Performance During Memorial Day Week The latest USDA Agricultural Marketing Service National Dairy Products Sales Report, dated June 3, 2026, provided price data for the week ending May 30, with butter prices for 25-kilogram and 68-pound boxes meeting USDA Grade AA standards averaging $1.60 per pound, reflecting an increase of 1.5 cents per pound from the prior week. Cheese prices diverged significantly, with cheddar blocks averaging $1.65 per pound, down 2.0 cents from the previous week, while dry whey strengthened 0.5 cents to 64.2 cents per pound and nonfat dry milk declined 0.8 cents to $2.12 per pound. The report noted participation from 17 entities for 40-pound cheddar blocks, 14 for butter, and 18 for nonfat dry milk. | Product | Week Ending 5/30 | Prior Week | Change | |---------|-------------------|------------|---------| | Butter (Grade AA) | $1.60/lb | $1.585/lb | +$0.015 | | Cheddar Blocks | $1.65/lb | $1.67/lb | -$0.020 | | Dry Whey (Extra Grade) | $0.642/lb | $0.637/lb | +$0.005 | | Nonfat Dry Milk | $2.12/lb | $2.128/lb | -$0.008 | Market tone remained firm overall, with CME and NDPSR values holding steady over recent weeks, while NDPSR data showed modest week-over-week declines in sales volumes. ## 3. Federal Milk Marketing Orders Report 13.4% Drop in Pooled Milk During April, 12.6 billion pounds of milk were received from Federally pooled producers, representing a volume 13.4 percent lower than the 2025 volume. Regulated handlers pooled 3.3 billion pounds of producer milk as Class I products, up 1.0 percent when compared to the previous year. The all-market average Class utilization percentages were: Class I = 26%, Class II = 14%, Class III = 54%, Class IV = 6%. The weighted average statistical uniform price was $19.11 per cwt, $1.21 higher than last month and $0.25 higher than last year. | Class | Utilization % | Previous Month | Year Ago | |-------|---------------|----------------|----------| | Class I | 26% | 25% | 25% | | Class II | 14% | 15% | 14% | | Class III | 54% | 53% | 55% | | Class IV | 6% | 7% | 6% | The sharp decline in total pooled volume reflects ongoing herd reductions across major milk-producing regions, while the higher uniform price suggests improved product demand supporting farmer returns. ## 4. Texas Confirms First H5N1 Dairy Case of 2026 Texas reported its first case of highly pathogenic avian influenza (HPAI) for 2026, following observed clinical signs including sick cows and milk production drops, with samples submitted to the Texas A&M Veterinary Medical Diagnostic Laboratory and confirmed at the National Veterinary Services Laboratory on May 30. The dairy is currently under quarantine as part of existing response protocols, and state and federal officials are working closely to mitigate disease spread, with epidemiological investigations being conducted to evaluate the situation further. Officials with the Utah Department of Agriculture and Food (UDAF) were notified on June 1 of a sample from a dairy in Cache County that tested positive for HPAI. As a result, UDAF is enacting mandatory weekly surveillance for HPAI in dairies in the county, with positive tests resulting in quarantine and no movement of lactating cattle permitted except for direct slaughter. USDA's voluntary Dairy Herd Status Program currently has 100 herds across 18 States enrolled, while several vaccine candidates for use in dairy cows are currently undergoing field trials. ## 5. USDA Raises 2026 Milk Production Forecast Despite Herd Reduction The 2026 dairy cow herd is projected to average 9.620 million head, 10,000 head more than last month's forecast. The dairy herd is expected to hold steady at 9.620 million head in 2027, while higher projected milk yield per cow is expected to increase 2027 production to 236.0 billion pounds, 0.6 billion more than in 2026. Export forecasts are adjusted higher in 2026 on both milk equivalent bases due to stronger expected cheese and dry whey exports more than offsetting lower expected exports of dry skim milk products, with exports expected to remain strong in 2027. Higher milk production is expected to contribute to a lower all-milk price in 2027 than 2026, averaging $20.95 per cwt, $0.30 lower than the 2026 forecast of $21.25 per cwt. | Year | Projected All-Milk Price | Dairy Cow Herd (Million Head) | Milk Production (Billion lbs) | |------|-------------------------|-------------------------------|-------------------------------| | 2026 | $21.25/cwt | 9.620 | 235.4 | | 2027 | $20.95/cwt | 9.620 | 236.0 | ## 6. Grocery Store Dairy Ad Activity Surges 16-30% Conventional dairy advertisements increased by 16 percent, while organic dairy ads rose by 30 percent during the survey period covering advertisements ending between May 23 and June 4, 2026. Ads for conventional cheese climbed 14 percent, while organic cheese advertising fell by 10 percent, with the most promoted conventional cheese item, 6-8-ounce shreds, appearing in 31 percent more ads with its weighted average price rising 25 cents to $2.65, while organic 6-8-ounce shredded cheese ads jumped 94 percent with an average price increase of 57 cents to $4.22, creating an organic premium of $1.57. Gallon-size containers were the most advertised package for conventional milk, with ads up 46 percent and an average price of $3.30, while in the organic segment, gallon milk ads declined 59 percent and the average price fell by $2.17 to $5.49, yielding an organic premium of $2.19. | Product Category | Conventional Price | Organic Price | Organic Premium | Ad Change (Conv/Org) | |------------------|-------------------|---------------|-----------------|---------------------| | 6-8oz Cheese Shreds | $2.65 | $4.22 | $1.57 | +31% / +94% | | Gallon Milk | $3.30 | $5.49 | $2.19 | +46% / -59% | ## 7. Global Dairy Trade Auctions Signal 2026 Recovery The first two Global Dairy Trade auctions of 2026 have shown positive price movements, with global dairy markets continuing their strong start to 2026 as prices rose 1.5% on average at the latest auction, following a sharp 6.3% gain in the first auction of the year. Whole milk powder (WMP), the most influential product for Fonterra's farmgate milk price, climbed 1% to US$3,449/MT, consolidating gains after a significant 7.2% rise at the previous event, while skim milk powder (SMP) strengthened further, up 2.2% to US$2,615/MT. Fat-based products continued to outperform, with butter rising 2.1% to US$5,314/MT, while anhydrous milk fat (AMF) increased 3.0% to US$6,191/MT. In contrast, several cheese and specialty products softened, with cheddar declining 1.4%, mozzarella recording the largest fall at -2.3%, and lactose easing 1.8%. | Product | Latest Price (US$/MT) | Change from Previous | |---------|----------------------|---------------------| | Whole Milk Powder | $3,449 | +1.0% | | Skim Milk Powder | $2,615 | +2.2% | | Butter | $5,314 | +2.1% | | AMF | $6,191 | +3.0% | | Cheddar | Not specified | -1.4% | ## 8. USDA Dairy Risk Management Programs Expand for 2027 The USDA Risk Management Agency (RMA) released a series of improvements to risk management programs for dairy producers for the upcoming 2027 crop year, which begins July 1, with improvements uniformly affecting coverage options for Livestock Risk Protection (LRP), Livestock Gross Margin for Dairy (LGM-Dairy) and Dairy Revenue Protection (Dairy-RP) insurance programs. The most notable change is the ability for dairy producers to use Dairy-RP and LGM-Dairy, and LRP and LGM-Cattle concurrently in the same coverage period as long as they meet certain criteria. LRP cull cow coverage will extend to 52 weeks out, maximum weight raised for steers and heifers will be raised to 18 hundredweight (cwt) and 17 cwt for cull cows, with a new weight class for unborn bulls and heifers and dairy calves including 6 to 9 cwt, while LGM maximum weight will raise to 1,800 pounds with maximum target weight raised to 18 cwt for yearlings and 16 cwt for calves. ## 9. National Milk Testing Strategy Updates Interstate Movement Rules USDA's Animal and Plant Health Inspection Service (APHIS) has issued updated guidance related to the April 2024 Federal Order that required testing of lactating dairy cattle before they move across State lines, with lactating dairy cattle moving interstate from States with Unaffected State Status under the National Milk Testing Strategy no longer required to be tested for HPAI H5N1 prior to movement. No testing is required for lactating dairy cattle originating from States with Unaffected State Status under the National Milk Testing Strategy, with Unaffected State Status requiring ongoing testing and surveillance activities to confirm the absence of HPAI in the State's dairy herds. Wisconsin began testing milk samples from milk quality laboratories for HPAI in accordance with federal USDA National Milk Testing Strategy in May 2025, with bulk tank milk samples submitted to quality laboratories from Grade A dairies tested monthly. ## 10. Organic Feed Costs Rise Sharply Organic feed soft red winter wheat sold $1.67/bu higher delivered feed mill, with new crop forward contracts $0.67/bu higher than in the last period. Organic soybean meal sold $11.11/ton lower FOB the crush facility, while organic soybean oil sold $0.06/lb higher FOB the crush facility. Few forward contracts procured for Q4 2026-Q3 2027 delivery, indicating cautious purchasing patterns among organic dairy operations. | Organic Feed | Current Price Change | Forward Contract Change | |--------------|---------------------|------------------------| | Soft Red Winter Wheat | +$1.67/bu delivered | +$0.67/bu new crop | | Soybean Meal | -$11.11/ton FOB | Not specified | | Soybean Oil | +$0.06/lb FOB | Not specified | ## Quick Hits • Conventional dairy advertisements are up 16 percent, and organic dairy ads increased 30 percent in week 22. • California Department of Food and Agriculture released all dairies under quarantine for H5N1 on February 27, 2026, marking an important step forward for California's dairy industry. • Overall market tone is firm, with prices for acid casein increasing across the range this week amid steady demand from Oceania and strong international interest. • NASS will publish the annual Acreage and quarterly Grain Stocks reports on June 30, 2026. • Since April 2024, Wisconsin has tested 9,461 raw milk samples for inter- and intrastate animal movement with zero positives. • The FARM Program released its 2026-27 Milk & Dairy Beef Drug Residue Prevention Reference Manual, with the U.S. dairy industry committed to antibiotic stewardship and judicious use of all medications. • AHDB data shows weighted average prices for dairy products displaying a rising trend as of May 19, 2026, for SMP, WMP, butter and the All products average. • USDA is investing $1 billion in a comprehensive strategy to curb HPAI and protect the U.S. ## What to Watch Next Week Monitor CME spot dairy markets for continued volatility following the Memorial Day holiday week trading patterns. USDA's June Agricultural Survey results, scheduled for release June 30, will provide critical crop acreage and livestock inventory data affecting feed cost projections. Watch for additional H5N1 confirmations as summer migration patterns intensify viral transmission risks. Federal Milk Marketing Order administrators will announce June Class prices, with particular attention to Class III-IV spreads. Global Dairy Trade auction on June 16 could extend the early-2026 rally or signal cooling international demand. Keep tracking organic dairy advertising trends as summer promotional activity typically peaks. *This analysis was compiled by the Therio Dairy Newsdesk from official USDA reports, CME market data, state agriculture departments, and industry sources. For breaking dairy market news and analysis, visit therio.com.*