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Milk Production Continues Growth in 2026
04.01.2026 05:09 "Agro Perspectiva" (Kyiv) —
According to the report of the USDA Dairy: World Markets and Trade (December 2025), milk production by major dairy product exporters is forecast 0.4 percent higher in 2026 as growth in the United States, Australia, and Argentina offsets slight reductions for the European Union (EU) and New Zealand. Accounting for most of the growth, U.S. milk production is forecast 1.2 percent higher in 2026 as dairy farmers continue to increase herds to supply growth in processing capacity. Growing cheese production is fueling demand for milk while strong exports have also boosted demand for dairy products. Argentina milk production is forecast 4.0 percent higher in 2026, amid good pasture conditions and low feed prices. Output is expected to rebound above previous highs reached before production was negatively impacted by drought and high input costs in 2024. Australia milk production is forecast to rebound by 1.8 percent as steady farmgate milk prices and relatively low feed costs will support herd recovery. In particular, improved rainfall in Southwestern Victoria and South Australia in 2025 is expected to lead to production recovery. Output in New Zealand is forecast to contract slightly as the cow herd continues to decline. European Union milk production is expected to decline for the second year in a row due to continued contraction in the cow herd, despite small growth in milk per cow. Although EU dairy margins improved during much of 2025, environmental policies and disease continue to weigh on the sector. EU processors are expected to continue to focus on high margin products, like cheese, as total milk production declines.
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