Class III Milk Prices Slide

Class III milk prices have declined significantly since their 2024 highs. Minnesota Milk Producers Association Executive Director Lucas Sjostrom says a lot of it has to do with oversupply of the solids market. “Although milk is milk, it’s the components that we sell and we’ve got all sorts of components on the market,” said Sjostrom. “When it comes to Class III, that’s our cheese market, and we need a better ratio to make cheese, and so there’s extra fat to sell and that fat just doesn’t have enough homes with our current butter market.” Sjostrom says there’s hope for the long-term outlook. “If the price goes low enough there’s going to be new markets created whether that’s exports or some other use for it.”