The U.S. dairy herd continued to expand in June, with the growing number of milk cows expected to increase domestic milk supplies and add pressure to international dairy commodity prices.
U.S. Dairy Herd Reaches 9.677 Million Cows
According to Rabobank senior analyst Emma Higgins, the U.S. dairy herd reached 9.677 million cows in June, an increase of 19,000 head from May and 192,000 more than June 2025.
The expansion is expected to continue, with approximately 100,000 replacement heifers preparing to enter milking herds across the country in the coming months.
Rising U.S. Milk Supplies Impact Global Markets
The continued growth in the U.S. dairy herd is contributing to higher milk availability and increased processing volumes.
According to U.S. Department of Agriculture data for July, cheese and skim milk powder prices recorded double-digit declines, while whole milk powder prices fell by a more modest 2%.
The price movements indicate that international dairy markets are adjusting to increased supply from North America.
European Production Faces Heat Stress
While U.S. production continues to expand, dairy producers in Europe are facing growing environmental challenges.
European milk production increased 2.4% year-on-year in May, but early summer heatwaves have started affecting production across the continent.
France, one of the first major European dairy producers to experience severe summer temperatures, recorded a 1.2% decline in milk production as heat stress affected dairy cow performance.
Global Dairy Market Faces Diverging Supply Trends
The contrasting production trends in the United States and Europe highlight the changing dynamics of the global dairy market.
Growing U.S. milk supplies could keep pressure on international commodity prices, while heat-related production losses in Europe could limit supply growth and provide some support to global markets in the months ahead.
