(NAFB.com) – Global dairy markets are sending mixed signals as milk production remains steady while international demand shows signs of weakening. USDA data show U.S. milk output holding near last year’s levels, though regional variations persist. Meanwhile, slower import demand from Asia has weighed on global prices, particularly for skim milk powder. Dairy economists said feed costs have eased slightly, offering some relief to producers, but margins remain tight. Industry analysts noted that cheese demand has remained relatively strong domestically, helping offset weaker export markets. Farm groups said volatility underscores the importance of risk management tools as producers navigate uncertain price signals. USDA is expected to release updated dairy outlook figures later this month, which could influence producer decisions heading into spring.
