The May 2026 Dairy Market Watch provides an overview of dairy market trends affecting producers in the Northeast Federal Milk Marketing Order (FMMO #1). Component production remained historically strong, with average butterfat and protein tests continuing seasonal patterns while setting new record highs for the month of May in the Northeast. Although both butterfat and protein percentages declined slightly from April, year-over-year gains reflect continued improvements in milk component production. Market conditions shifted as butterfat prices declined while protein prices increased, influencing producer milk value. The Statistical Uniform Price at average component levels reached $23.10 per hundredweight when including the Producer Price Differential. Milk utilization data showed continued strength in Class II processing, which recorded the highest monthly Class II volume since the order's creation, driven by increased production of yogurt, cottage cheese, and ice cream. The report highlights key pricing, utilization, and production trends to help dairy producers monitor market conditions.
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