US milk output closes the year strong note amid margin pressure

US milk production ended in 2025 with a strong supply growth, with herd expansion and rising yields driving production higher across most regions. Annual volumes also closed firmly above last year’s level. Yet behind the impressive output figures, short-term and structural challenges remain. Falling milk prices and tightening farm margins are steadily wearing down incentives for expansion, while replacement dynamics are affecting the long-term outlook. Meanwhile, the seasonal risk of winter disruptions is becoming increasingly concerning for the sector.