MRV BLOG: MRV Market Commentary March 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:

April Class I Price Moves Higher Across FMMOs 

The Class I base price rose sharply in April to $18.66/cwt, up $3.19 from March and just $0.91 below last year. With zone differentials, Class I prices are expected to average $22.78/cwt across FMMOs, led by Florida at $25.46 and Arizona at $21.26.

On the component side, the Class I skim price climbed to $12 per cwt, up more than $2 from last month. The gap between the advanced Class III skim factor ($9.14) and the Class IV skim factor ($12) widened to $2.86, keeping Class IV as the “higher of” and the mover in the pricing formula. Butterfat also strengthened, with the advanced factor rising to $2.02 per pound.

Fuel: With global conditions remaining volatile, fuel costs are also impacting the dairy industry. A roughly 15–25% increase in diesel prices may translate to an estimated $0.05 per gallon increase in milk costs.

WHAT MRV SEES: April’s increase was driven largely by stronger Class IV values, which continued to outpace Class III and served as the mover in the pricing formula. Rising butterfat prices and a higher skim value also contributed to the upward shift, signaling firmer product markets heading into spring.

These shifts in the Class I base price, along with pooling percentages, will shape upcoming uniform milk prices across all FMMOs. The uniform price is the blended average paid to producers after all classified milk revenue is pooled, meaning higher Class I and IV values lift the overall pay price across the system. As a result, increases at the class level will flow through to higher uniform prices, ultimately putting upward pressure on future raw milk and ingredient costs.

Based on current market dynamics, May prices are forecasted to rise modestly, though not nearly to the extent seen this April.

This information cited by MRV Marketing, LLC 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 Marketing, LLC 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.