MRV BLOG: MRV Dairy Market Commentary July 23, 2026

Check-in here to see the MRV commentary on what we have seen and are seeing in the dairy market.  These insights have been developed from MRV’s proprietary data, industry experience, and industry reports referenced below. Here’s our latest:

August pricing brought some welcome relief for dairy buyers, with the Class I price moving approximately 12.0% lower from July.

The biggest reason for the decline was weakness in the skim and milk-powder markets. Nonfat dry milk dropped approximately 15.0%, while the Class I skim value moved approximately 17.2% lower. Butter went the other direction, increasing approximately 0.9%. That difference is important because it shows that the market did not move lower across the board, the pressure was concentrated mainly on the skim side.

Milk supply remains a big part of the story. USDA raised its production outlook as the dairy cow population and overall milk availability continued to grow. With more milk moving through the system, manufacturers had more product available at a time when buyers were not showing the same urgency they had earlier in the summer.

Powder demand was especially uneven. Domestic demand held fairly steady, but export interest was mixed. Buying from Mexico, one of the largest customers for U.S. milk powder, was inconsistent during the pricing period. When milk supplies are growing and major export buyers are not actively competing for product, prices tend to come under pressure.

The international market was also softer. Skim milk powder declined approximately 7.0% at the July Global Dairy Trade event, while whole milk powder fell approximately 4.4%. Milk production was also running ahead of the previous year in several major exporting regions, giving buyers more choices and less reason to move quickly.

Cheese prices were approximately 6.5% lower, adding to the softer tone across the broader dairy market. Butter remained relatively steady, however, which helped support the cost of higher-fat products.

WHAT MRV SEES

Buyers of standard fluid milk should see the most benefit from the August move. Cream, half-and-half and other products with more butterfat may not come down as much because the butter market has held up better.

Going forward, nonfat dry milk and export demand will be the key areas to watch. A return of stronger buying from Mexico could help stabilize the market. If export demand remains quiet and milk supplies stay strong, the pressure on skim values could continue.

For now, the August decline looks more like a market correction after the sharp run-up in powder prices earlier this summer, not a major breakdown across the entire dairy market.

This information cited by MRV Dairy Solutions®. is for informational and reference purposes only. It is not intended to be a conclusive statement of future market conditions. It is not legal advice or legal documents. The data used in these documents contains references to information created and maintained by other organizations or agencies. Please note that MRV Dairy Solutions® does not control and cannot guarantee the accuracy of these outside materials.

Statistical data referenced here is gleaned from reports by MRV Proprietary Data, CME Group, Dairy Herd Management, USDEC, FRED and USDA.