CoBank: Tight margins, high costs pressuring ag economy

October 9, 2026

DENVER — Elevated borrowing costs, tighter agricultural margins and surging infrastructure demands are testing resilience across the rural economy. In the background, artificial intelligence (AI) is augmenting tasks rather than replacing occupations. While these forces are creating new opportunities, they’re also raising the stakes for businesses, producers and service providers deciding where to invest, adapt and compete, says a new report, “The Quarterly: Energy demand and borrowing costs test rural resilience,” released this week by CoBank’s Knowledge Exchange.

• Impact of AI

Nearly four years after the public release of generative AI tools, evidence of a widespread labor market disruption remains limited, the report says. While AI adoption among businesses has expanded rapidly and more than half of workers are using AI in some capacity, its impact has largely been concentrated on specific tasks rather than the elimination of entire jobs.

According to CoBank’s Knowledge Exchange, current data suggests that fears of an imminent AI-driven employment “apocalypse” have not materialized, and overall demand for workers remains largely intact across industries and demographic groups.

“Many workers are using AI to support specific activities, but the adoption remains relatively shallow,” says Rob Fox, vice president of CoBank’s Knowledge Exchange. “Most jobs depend on a broad combination of skills that AI cannot fully replicate. As a result, organizations have generally focused on redesigning workflows and retraining employees rather than reducing headcounts.”

Several recent studies and employer surveys reinforce that conclusion. Relatively few companies report layoffs directly attributable to AI adoption. Instead, organizations are investing in workforce development and modifying job responsibilities. Most importantly, there is a notable gap between AI’s impact on individual productivity gains and measurable business outcomes. While many workers report completing tasks faster, relatively few companies have realized significant improvements in profits or enterprise-wide value creation.

• U.S. economy, government

Economists have differing views on why intermediate- and long-term interest rates surged higher this year. Some attribute higher rates to persistent inflation and a resilient economy. Others blame government deficits, AI investment, reduced foreign demand for U.S. debt or declining confidence in economic policy. The competing explanations can largely be reduced to two related forces — investors expect short-term interest rates to remain higher for longer, while governments and corporations are asking markets to finance an ever-increasing level of outstanding debt.

Meanwhile, midterm election pressures are limiting legislative progress as candidates focus on competitive races and voter concerns about affordability. In rural America, low commodity prices, high input costs, trade disruptions and farm bill delays are intensifying uncertainty for agricultural producers, the report notes.

Farmers and the broader agriculture industry remain hopeful that whatever the November election brings, the urgent need for stability will convince legislators to resume legislating. Meanwhile, opposition to data centers continues to grow as rural and urban communities alike question their energy demands, costs and local economic benefits.

• Dairy, food and beverage

The U.S. dairy herd grew by 200,000 over the past 12 months, driven by strong producer returns for beef-on-dairy calves. Texas, Idaho, Kansas and South Dakota paced the herd expansion as U.S. dairy cow numbers moved to a 34-year high, the report notes.

While beef-on-dairy calves have dropped from a $2,000 high this May, the current $1,300 per calf remains far higher than the $200 level that prevailed prior to 2023. The extra dairy cows and resulting milk supply have put downward pressure on milk check revenue. As a result, beef revenue has become the key profit driver at the margin for producers with milk checks covering expenses.

Meanwhile, food inflation remains a central pressure point for packaged food companies, driven by elevated energy, fertilizer, raw material, packaging and tariff costs, the report says. According to USDA data, the average food bill will climb at least 3% through 2026 and another 2.4% in 2027 — but that increase masks the cumulative effect. Overall food prices have jumped 30% since January 2020. Retail brands are firmly in reactionary mode, as reduced unit sales and limited pricing flexibility leave them with few options.

Supply chain costs are expected to continue increasing through the latter half of the year, with fuel costs alone poised to significantly impact margins, the report adds. Consumers face those same inflationary pressures and will continue to focus their food and beverage behaviors on value and lower prices options. The only real positive for retailers and brands will be that consumers’ shift toward food at home should continue.

To read the report, visit www.cobank.com/knowledge-exchange/the-quarterly-energy-demand-and-borrowing-costs-test-rural-resilience.

CMN

AAP publishes updated policy position on raw dairy products

October 9, 2026

ITASCA, Ill. — The American Academy of Pediatrics (AAP) this week announced an updated policy statement that emphasizes risks associated with consumption of raw dairy products and examines evidence on avian influenza as a potential new source of infection.

“Unpasteurized milk, cheese and other ‘raw’ dairy products are unsafe to drink or eat, especially for young children and those who are pregnant or breastfeeding,” the AAP’s updated guidance says.

The AAP also has renewed its call for a ban on the sale and distribution of raw milk and dairy products, including raw cheeses, noting that they increase the risk of life-threatening infections. Claims that raw milk provides superior health benefits are not supported by scientific evidence.

The statement, “Consumption of Unpasteurized (Raw) Milk and Milk Products by Pregnant People and Children,” is published in the November 2026 Pediatrics (published online Oct. 5). The policy statement, written by the Committee on Infectious Diseases and the Committee on Nutrition, was featured during an Oct. 5 presentation at the AAP 2026 National Conference & Exhibition in San Diego, California.

The updated guidance also highlights emerging evidence that H5N1, or highly pathogenic avian influenza, may represent a new and potentially serious risk associated with raw milk. Research suggests the virus can be transmitted from infected dairy cattle into milk, where it can reach high concentrations and remain detectable in refrigerated raw milk for up to five weeks.

“Nearly half of illnesses caused by raw dairy consumption occur in people under age 20 — and a significant share of those cases are in children under 5,” says Adam J. Ratner, lead author. “These illnesses can be severe and lead to life-threatening complications. Pasteurization — a safe, effective process of heating and cooling milk before consumption that has been used for more than a century — dramatically reduces the risks without taking away the nutritional value families rely on.”

Policy statements created by AAP are written by medical experts, reflect the latest evidence in the field and go through several rounds of peer review before being approved by the AAP board of directors and published in Pediatrics. This policy statement updates guidance last provided in 2014 and reaffirmed in 2025.

Despite well-documented health risks, the sale and distribution of raw milk products remain legal in at least 27 states, AAP says. During the 2024 U.S. dairy outbreak, infectious H5N1 virus was detected in nearly one-quarter of raw milk samples in affected areas. While there are no confirmed human cases of H5N1 infection from consuming raw milk to date, it remains a credible, emerging threat.

Unpasteurized milk already is a well-documented source of serious pathogens including Listeria, E. coli, Salmonella, Campylobacter and Brucella. These infections can lead to hospitalization, life-threatening illness, miscarriage and death, particularly in young children, pregnant people and those with weakened immune systems, AAP notes, adding that those who are pregnant face especially high risks from foodborne infections. The incidence of listeriosis, for example, is estimated to be 12 to 14 times higher during pregnancy than in the general population. Infection can lead to miscarriage, stillbirth, premature delivery or severe illness in newborns.

“Parents may choose raw milk because they have heard it is healthier or more natural, but the scientific evidence tells a different story,” says Mark R. Corkins,
co-author of the policy statement. “Pasteurized dairy products provide the same essential nutrients without exposing children and families to preventable infections from dangerous bacteria and viruses. For infants, children and pregnant people, pasteurized dairy products are clearly the safest choice.”

To read the full updated policy statement, visit https://publications.aap.org/pediatrics/article/doi/10.1542/peds.2026-079036/210736/Consumption-of-Unpasteurized-Raw-Milk-and-Milk.

CMN

August U.S. cheese production rises 1.4% from one year ago

October 9, 2026

WASHINGTON — August U.S. cheese production, excluding cottage cheese, totaled 1.245 billion pounds, up 1.4% from the 1.228 billion pounds produced in August 2025, according to data released this week by USDA’s Natural Agricultural Statistics Service (NASS). August cheese production was down 1.4% from the 1.263 billion pounds produced in July. (All figures are rounded. Please see CMN’s Dairy Production chart.)

Italian-type cheese production in August totaled 541.3 million pounds, up 3.7% from August 2025. Production of Mozzarella, the largest component of Italian-type cheese production, totaled 420.9 million pounds in August, up 1.8% from a year earlier.

American-type cheese production in August totaled 477.0 million pounds, down 0.9% from August 2025. Production of Cheddar, the largest component of American-type cheese, totaled 325.9 million pounds, down 0.9% from August 2025.

Wisconsin was the leading cheese-producing state with 303.1 million pounds produced in August, up 2.4% from August 2025. California followed with 197.0 million pounds produced in August, down 6.6% from a year earlier.

U.S. production of butter totaled 187.4 million pounds in August, up 6.3% from 176.3 million pounds a year ago. August butter production was down 0.9% from July. California was the leading butter-producing state with 57.2 million pounds produced in August, up 6.6% from August 2025.

CMN

U.S., China make progress on trade; Ibach gets nomination

October 2, 2026

WASHINGTON — Last week, President Donald Trump and First Lady Melania Trump hosted China’s President Xi Jinping and his wife Peng Liyuan for a reciprocal state visit, where they discussed trade among other topics.

The two leaders operationalized the cornerstone government-to-government mechanisms of the U.S.-China Board of Trade and the U.S.-China Board of
Investment, which were chartered during the May 2026 Summit in Beijing.

Under the Board of Trade, the two countries reached consensus on recommendations for more favorable tariff treatment for $30 billion of non-sensitive goods in each direction. The Board of Trade also launched a working group focused on addressing market access barriers in the agricultural sector.

For U.S. exports, the goods include agricultural goods — primarily animals and meat — as well as fish and seafood, logs and wood products, cosmetics and medical devices. For U.S. imports, the goods include consumer products such as small appliances, toys, holiday decorations and children’s car seats.

According to several media reports, last week the United States and China also agreed to extend through Jan. 10 their trade truce or the “Busan Agreement” that had lowered tariffs and was set to expire in November. Meanwhile, China’s commerce ministry is extending two investigations it launched earlier this year into U.S. trade practices by three months.

In other trade news, this week Greg Ibach was nominated by Trump to serve as the next Under Secretary for Trade and Foreign Agricultural Affairs. If confirmed, he would succeed Luke Lindberg, who has been appointed as executive director of the United Nations World Food Programme.

Michael Dykes, president and CEO of the International Dairy Foods Association, welcomed Ibach’s nomination and urged the Senate to move swiftly to consider and confirm him.

“Greg brings a deep understanding of American agriculture and extensive experience advancing U.S. agricultural products in markets at home and abroad. His prior service as USDA Under Secretary for Marketing and Regulatory Programs, more than a decade leading the Nebraska Department of Agriculture, and firsthand experience as a farmer and rancher provide a strong foundation for this important role,” Dykes says.

“Expanding global markets is essential to the continued growth and competitiveness of U.S. dairy,” Dykes adds. “America’s dairy industry has more than doubled our exports over the past 10 years, and we are ready to serve growing demand around the world. We need strong leadership at USDA focused on opening new markets, removing trade barriers, and ensuring U.S. dairy products receive fair and reliable market access. We look forward to working with Greg to advance those priorities and strengthen opportunities for U.S. dairy exports.”

The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) also welcomed Ibach’s nomination.

“As U.S. dairy farmers increasingly look to build international markets, USDA serves as a key resource to help our exporters meet global customers. Greg Ibach is a longtime leader in the agricultural industry and is an excellent choice to lead this important work. We look forward to working with him in this new capacity and urge a swift confirmation process in the Senate,” says Gregg Doud, president and CEO, NMPF.

“USDA’s role in facilitating dairy trade requires experienced leadership,” says Krysta Harden,president and CEO, USDEC. “Greg Ibach is the right choice to serve as Under Secretary for this critical work that dairy exporters rely upon. His impressive tenure as a leader at USDA and his firsthand experience as a farmer provides him with a valuable perspective to ensure that our producers’ interests are promoted on the international stage. We encourage the Senate to quickly advance his nomination.”

CMN

Industry raises more than $47K at WDE dairy products auction

October 2, 2026

MADISON, Wis. — Dairy industry stakeholders raised more than $47,000 at the 2026 World Dairy Expo (WDE) Championship Dairy Products Auction, held here
Monday evening on the WDE grounds at the Alliant Energy Center and hosted by the Wisconsin Dairy Products Association (WDPA).

While $46,650 was raised from bids on 26 lots of first-place products from this year’s World Dairy Expo Championship Dairy Products Contest, held Aug. 18-20 at Madison College, an additional $725 playfully was donated following the auction for three “butter squishies,” which were purchased by Excel Engineering ($250),
Compeer Financial ($200) and M3 Insurance ($275), bringing the evening’s total to $47,375.

A portion of proceeds from the auction go to students pursuing food or agricultural degrees at the University of Wisconsin-Madison, UW-Platteville, UW-River Falls, North Central Technical College and Madison College.

“We had a great crowd and a great time celebrating our winners and raising a lot of money to support scholarships for our next generation of dairy stars,” says Phil Plourd, executive director of WDPA. “It’s a privilege to partner with World Dairy Expo on this contest.”

Winning bids in each lot are as follows:

• Lot 1 — Kelley Supply purchased a combined lot of Cello Fontina made by Schuman Cheese/Lake Country Dairy, Turtle Lake, Wisconsin; Plain Cream Cheese made by High Desert Milk, Burley, Idaho; and Cotija Cheese made by V&V Supremo Foods, Chicago, for $2,400.

• Lot 2 — Kwik Trip purchased a combined lot of Plain Cheese Curds made by Nasonville Dairy, Marshfield, Wisconsin; Chocolate Peanut Butter Chipper made by Whitey’s Ice Cream, Moline, Illinois; 2% Small Curd Cottage Cheese made by Prairie Farms Dairy, Quincy, Illinois; and Know & Love Goat Cheese Crumbles made by The Winn-Dixie Co., Jacksonville, Florida, for $2,200.

• Lot 3 — Excel Engineering purchased a combined lot of Baby Swiss Cheese made by CROPP/Organic Valley, LaFarge, Wisconsin; Salt Kissed Ice Cream made by Kwik Trip, La Crosse, Wisconsin; and Lite Sour Cream made by Hiland Dairy, Omaha, Nebraska, for $1,050.

• Lot 4 — Nelson-Jameson purchased a combined lot of Super Premium Vanilla made by Kurschner’s Super Premium Ice Cream, Chetek, Wisconsin, and Non-Smoked Provolone made by Foremost Farms USA, Clayton, Wisconsin, for $1,000.

• Lot 5 — Excel Engineering purchased a combined lot of Super Gouda made by Marieke Gouda, Thorp, Wisconsin; Mango Lassi Frozen Yogurt made by Clementine’s Ice Cream, St. Louis; and White Extra Melt American With Jalapenos made by Land O’Lakes, Spencer, Wisconsin, for $1,900.

• Lot 6 — M3 Insurance purchased a combined lot of Mint Chip made by Chocolate Shoppe Ice Cream, Madison, Wisconsin; Mascarpone made by Crave Brothers Farmstead Cheese, Waterloo, Wisconsin; and String Cheese made by CROPP/Organic Valley, LaFarge,
Wisconsin, for $2,700.

• Lot 7 — Nelson-Jameson purchased a combined lot of Cheddar Cheese made by Southwest Cheese, Clovis, New Mexico; Chihuahua Cheese made by V&V Supremo Foods, Chicago; and Crema Mexicana made by Hiland Dairy, Norman, Oklahoma, for $1,950.

• Lot 8 — Masters Gallery Foods purchased a combined lot of Cheese Crafters Yellow Cheddar Cheese Cubes made by Winona Foods, Green Bay, Wisconsin; Pepper Jack Cold Pack Cheese Spread made by Pine River Pre-Pack, Newton, Wisconsin; and Blueberry Greek Nonfat Yogurt made by Upstate Niagara Cooperative, Lancaster, New York, for $2,200.

• Lot 9 — Kemps purchased a combined lot of S’more to Love made by Chocolate Shoppe Ice Cream, Madison, Wisconsin, and Vanilla Yogurt made by Old Home Foods, Bloomington, Minnesota, for $925.

• Lot 10 — Excel Engineering purchased a combined lot of Caves of Faribault AmaBlu Blue Cheese made by Prairie Farms Dairy, Davenport, Iowa; Vanilla Bean made by Clementine’s Ice Cream, St. Louis; and EM Strawberry Drinkable Yogurt made by Marquez Brothers International, Clewiston, Florida, for $900.

• Lot 11 — Lake Country Dairy/Schuman Cheese purchased a combined lot of President Rondele Mango Habanero Spreadable Cheese made by Lactalis American Group, Merrill, Wisconsin; Super Premium Chocolate Ice Cream made by Kurschner’s Super Premium Ice Cream, Chetek, Wisconsin; and Bison Sour Cream made by Upstate Niagara Cooperative, Lancaster, New York, for $1,410.

• Lot 12 — Hydrite purchased a combined lot of Sweet Spoonful Vanilla Mascarpone made by Schuman Cheese/Lake Country Dairy, Turtle Lake, Wisconsin; Karoun Village Touma made by Central Valley Cheese, Turlock, California; and Cookies & Cream Ice Cream made by Kwik Trip, La Crosse, Wisconsin, for $2,310.

• Lot 13 — Rosemary Raysor of Darigold Inc. purchased a combined lot of La Chona Chipotle Cream made by Mexican Cheese Producers-Sigma, Darlington, Wisconsin; 1% Cottage Cheese made by Hiland Dairy, Wichita, Kansas; Ghira Yummie made by King Cone LLC, Plover, Wisconsin; and Whole Milk Ricotta Cheese made by Lactalis American Group, Buffalo, New York, for $1,305.

• Lot 14 — Phil Plourd of WDPA purchased a combined lot of Cookie Butter Gelato made by Gelatissimo USA, Houston, and 80% Salted Butter made by Dairy Farmers of America, Winnsboro, Texas, for $1,500.

• Lot 15 — Galloway Co. purchased a combined lot of Aged Cheddar Cheese made by Land O’Lakes , Kiel, Wisconsin; Fresh Mozzarella-Ciliegine made by Crave Brothers Farmstead Cheese, Waterloo, Wisconsin; and Blueberry Yogurt made by Hiland Dairy, Wichita, Kansas, for $6,000.

• Lot 16 — T.C. Jacoby & Co. purchased a combined lot of Grade AA Cultured Butter made by Continental Dairy Facilities, Coopersville, Michigan, and 10% Plain Greek Yogurt made by Cabot Creamery Cooperative, Waitsfield, Vermont, for $1,000.

• Lot 17 — Nelson-Jameson purchased a combined lot of Cello Black Pepper Roasted Garlic Hand Rubbed Fontina made by Schuman Cheese/Lake Country Dairy, Turtle Lake, Wisconsin; Black Raspberry Chip made by Cedar Crest Specialties, Cedarburg, Wisconsin; and Ranch Dip made by Prairie Farms Dairy, Fort Wayne, Indiana, for $1,750.

• Lot 18 — Masters Gallery Foods purchased a combined lot of Muenster made by CROPP/Organic Valley Cooperative, LaFarge, Wisconsin; Classic Parmesan made by Sartori Cheese, Plymouth, Wisconsin; and Whole Milk Plain Original Yogurt made by Country View Dairy, Hawkeye, Iowa, for $2,500.

• Lot 19 — Kerry purchased a combined lot of High Protein Strawberry Ice Cream made by Hoffmann Oberweis Dairy, North Aurora, Illinois; 2% Small Curd Cottage Cheese made by Umpqua Dairy Products Co., Roseburg, Oregon; Cello Smoky Pepper Hand Rubbed Fontina made by Schuman Cheese/Lake Country Dairy, Turtle Lake, Wisconsin; and Low Fat Ricotta Cheese made by
Lactalis American Group, Buffalo, New York, for $950.

• Lot 20 — Galloway Co. purchased a combined lot of Roth Grand Cru Surchoix Wheel made by Emmi Roth, Stoughton, Wisconsin; Naturally Oven-Smoked Processed Gruyère made by Global Foods International, Schiller Park, Illinois; and Mango Dragon Fruit Sherbet made by Stewart’s Shops, Saratoga Springs, New York, for $2,800.

• Lot 21 — Excel Engineering purchased a combined lot of Strawberry Crème made by Clementine’s Ice Cream, St. Louis; EM Mango Drinkable Yogurt made by Marquez Brothers International, Clewiston, Florida; and Colby Jack made by Schnuck Markets Inc., St. Louis, for $500.

• Lot 22 — Winona Foods purchased a combined lot of Organic Sharp Cheddar made by Rumiano Cheese Co., Plymouth, Wisconsin; Vona Whole Milk Mozzarella made by Pennland Pure, Hancock, Maryland; and Black Walnut Premium Ice Cream made by Belfonte Dairy, Kansas City, Missouri, for $1,450.

• Lot 23 — Kemps purchased a combined lot of French Onion Dip made by Prairie Farms Dairy, Carbondale, Illinois; Super Premium French Vanilla made by Kurschner’s Super Premium Ice Cream, Chetek, Wisconsin; Whole Milk Strawberry Yogurt made by Old Home Foods, Bloomington, Minnesota; and Breakstone’s Whipped Butter made by Dairy Farmers of America, Winnsboro, Texas, for 1,700.

• Lot 24 — Cheese & Butter Grand Champion — Excel Engineering purchased BBQ Chip Cheese Curds made by Pleasant Lane Farms Creamery LLC, Latrobe, Pennsylvania, for $1,400.

• Lot 25 — Grade A Grand Champion — Nelson-Jameson purchased 10% Vanilla Greek Yogurt made by Cabot Creamery Cooperative, Waitsfield, Vermont, for $875.

• Lot 26 — Ice Cream Grand Champion — Nelson-Jameson purchased Yippee Skippee made by Chocolate Shoppe Ice Cream, Madison, Wisconsin, for $1,975.

CMN

Law firm seeks comment on raw milk cheese FDA petition

October 2, 2026

BAINBRIDGE ISLAND, Wash. — Food safety law firm Marler Clark Inc. this week opened a public comment period on a draft citizen petition asking FDA to require a warning statement on cheese made from unpasteurized milk.

“Every fact in this petition is footnoted, and most of the sources are FDA’s own,” says Marler Clark Managing Partner Bill Marler. “Before I ask the agency to act on it, I want the people who make, sell, regulate, treat the victims of and eat this cheese to tell me where it is wrong. I would rather fix it now than read the objection in the docket.”

Earlier this week, the Centers for Disease Control and Prevention (CDC) and FDA announced a multistate outbreak of Shiga toxin-producing E. coli O26:H11 linked to Graziers grass-fed raw milk cheese made by Sierra Nevada Cheese Co. of Willows, California.

As of Sept. 30, the outbreak includes 13 people sick in California, Colorado, Georgia, Kentucky, Michigan, Nevada, Oregon, Tennessee and Utah, eight hospitalized and three with hemolytic uremic syndrome, a form of acute kidney failure. More than half of the sick are 5 years old or younger. FDA contacted the company on Sept. 24, and the company recalled all four Graziers raw milk cheeses the same day (see related article on page 10 of this issue). The cheese was aged at least 60 days, as federal law requires of a raw milk cheese, and the package said so.

This week Marler Clark was retained by the family of a child who developed hemolytic uremic syndrome after eating Graziers raw milk cheese. The firm is not identifying the child. Marler also represents a claimant in the 2025 Twin Sisters Creamery raw milk cheese outbreak in Washington and Oregon; both representations are disclosed in the petition.

“A family bought a cheese whose label told them it followed the federal rule, and their child is in kidney failure,” Marler says. “The label did not tell them what FDA wrote in 2015: that the rule was presumed to control pathogens, that the data said otherwise, and that E. coli O157:H7 survives 60 days in Cheddar.
That sentence belongs on the package, and it is the only thing this petition asks a cheesemaker to add.”

Since 1987, FDA has prohibited unpasteurized milk in interstate commerce, with one exception the regulation itself calls an “alternative procedure to pasteurization” — cheese cured at least 60 days. Marler’s petition documents four E. coli outbreaks in 31 months linked to cheese that met that requirement, 43 people sick, 17 hospitalized and at least six children with kidney failure, and rests on the agency’s own record: the 2015 joint FDA/Health Canada risk assessment finding that 60 days of aging can increase listeriosis risk in soft-ripened raw milk cheese; the agency’s 2015 request for comment on the 60-day rule, which drew 75 comments and no proposed rule; FDA’s own sampling of 1,606 aged raw milk cheeses; and an FDA-funded Cornell University study published in Nature Medicine in October 2025 finding that 60 days of aging does not eliminate viable H5N1 avian influenza virus. It notes that California’s raw milk warning law, in force since 1991, expressly exempts cheese aged 60 days, and that Washington’s applies only to containers of milk.

The petition asks FDA to amend 21 CFR 101.17, the regulation that has carried the unpasteurized juice warning since 1998 and the shell egg safe handling statement since 2000, to require on cheese made from unpasteurized milk: “WARNING: This product is made from unpasteurized (raw) milk and may contain harmful bacteria that can cause serious illness in children, older adults, pregnant women and persons with weakened immune systems.”

It asks that cut-to-order cheese be covered by a counter placard, that imports be treated like domestic cheese and that online sellers display the statement; exempts cheese made from pasteurized milk or a validated equivalent process; and asks FDA to complete within a year the reevaluation of the 60-day rule it announced in 2013, and to publish the sampling data it already holds, including the 2025 H5N1 results promised for the spring of 2025 and never posted. It does not ask FDA to ban raw milk cheese, lengthen the aging period or restrict who may buy it.

Marler is asking for specific criticism on five questions, and for any factual error:

• Is the wording of the statement right? FDA’s juice warning names children, the elderly and people with weakened immune systems; the draft adds pregnant women and says “older adults.” Should it name the diseases?

• Is a point-of-sale placard workable for cheese cut and wrapped at a service counter, and should the retailer or the cheesemaker be responsible for it?

• Which validated processes should qualify for the exemption from the statement, and who should validate them?

• Is one year of placards before labels must change the right compliance period, or too long for public health or too short for a small farmstead cheesemaker?

• Is any count, date or quotation in the draft wrong? Each is footnoted so it can be checked.

The draft petition and request for comments are posted at www.marlerblog.com/case-news/raw-milk-cheese-needs-a-warning-label-here-is-the-fda-petition-i-plan-to-file-read-it-and-tell-me-what-i-got-wrong-before-i-do/.

Comments should be emailed to bmarler@marlerclark.com by Oct. 9. Marler will read all of them and may quote from comments in a follow-up post without attribution unless the commenter agrees to be named. Once the petition is filed, FDA will assign it a docket number on regulations.gov, where anyone may comment formally; the agency is required to respond within 180 days.

“I am not asking FDA to ban anything,” Marler says. “Adults who want raw milk cheese can keep buying it. I am asking for the sentence the government has put on unpasteurized juice for 28 years, and I am asking the people who know this product better than I do to help me get it right.”

CMN

IWC conference looks at ‘The Whey Ahead’ for dairy proteins

September 25, 2026

CHICAGO — The American Dairy Products Institute (ADPI), in partnership with the European Whey Processors Association (EWPA), welcomed whey industry professionals from around the world to Chicago this week for the 12th International Whey Conference (IWC), held Sept. 20-23.

The sold-out conference brought together whey processors, manufacturers, researchers, suppliers, customers and industry stakeholders for sessions focused on the science, innovation, markets and opportunities shaping the future of whey. The conference’s exhibit hall also sold out, underscoring the strong industry interest and engagement surrounding this year’s event, organizers say.

“The International Whey Conference is unique because it brings together the entire global whey community, from research and processing to applications, markets and the companies putting these ingredients to work,” says Patti Smith, president and CEO of ADPI. “To see a sold-out conference and exhibit hall, along with the level of engagement throughout the week, speaks volumes about the strength of this industry and the value of bringing people together to exchange ideas, build relationships and look ahead to what’s next for whey.”

Educational programming throughout IWC 2026 examined the opportunities and challenges influencing whey today and into the future. General sessions explored the current and future state of the global whey industry, sustainability, emerging technologies and feedstocks, regulatory developments and how whey ingredients are being used around the world. Dedicated nutrition and innovation tracks provided a deeper look at the latest research in protein and lipid nutrition, processing advances, functionality and applications.

In a presentation on how the United States is meeting growing demand for whey protein, Mike McCully, owner of McCully Consulting, noted the unprecedented amount of investment in milk processing and dairy proteins across the country. From 2025 and continuing through 2027, there have been and will be more than $13 billion in 40-plus new dairy plant investments, with multiple new cheese plants and expansions in the central United States, he said.

Looking forward, record-high whey protein prices will spur additional cheese production, along with conversions of lower-value whey products, like sweet whey powder and whey protein concentrate (WPC) 34% and 35%, to higher-value products like WPC 80% and whey protein isolate (WPI), he added.

From a global perspective, dairy economist Mary Ledman, publisher of the Daily Dairy Report, presented on meeting the challenges of changing global demographics, diets and supply chains. She highlighted several examples of vertical integration among U.S. dairy companies as well as global examples from China, Russia and Saudi Arabia.

Cross-border partnerships and acquisitions also have presented new opportunities, Ledman added, citing Southwest Cheese, which began as a joint venture between Ireland-based Glanbia plc and U.S. dairy cooperatives Dairy Farmers of America and Select Milk Producers. Another example included the acquisition of Wisconsin Whey Protein by Dutch-based FrieslandCampina, a strategic move that allows the co-op to scale and expand its market position in Europe and Asia into the North American market.

Meanwhile, Scott Dicker, senior director and head of research and insights for SPINS, presented on how the “whey boom” is signaling where the market is headed. He noted that protein is top of mind for today’s consumers, and products are becoming format-flexible, expanding usage occasions beyond traditional sports nutrition.

He adds that even with shortages and pricing struggles in the whey market, whey remains at the top in terms of growth, with whey protein powder leading the charge.

In addition to the various presentations throughout the conference, industry executives took the stage late Monday morning for a leadership panel moderated by Smith and featuring Luis Cubel, CEO of Arla Foods Ingredients; Maxime Devourdy, president, ingredients and corporate strategy, for Agropur Canada; Scott Graham, chief operating officer of Hilmar; and Benno Van Mersbergen, director of whey partnerships for FrieslandCampina, providing perspectives from across the international dairy ingredients sector.

IWC 2026 also put emerging researchers in the spotlight through its Early Career Researcher Award competition. Eleven early career researchers were selected to participate in the Poster Competition, providing an opportunity to showcase new research, exchange ideas with fellow scientists and connect directly with professionals from across the global whey industry.

Beyond the educational program, IWC provided numerous opportunities for attendees to connect with colleagues, customers and industry partners throughout the conference.

One of the week’s signature networking experiences took attendees beyond the conference hotel for a dinner cruise on Lake Michigan. Attendees enjoyed an evening on the water and views of the Chicago skyline while continuing the conversations and relationship-building that are central to the IWC experience, organizers say.

The global whey community will come together for the 13th International Whey Conference, set for Sept. 17-20, 2028, at the De Doelen convention center in Rotterdam, the Netherlands.

CMN

Higher-component herds take in bigger milk checks: report

September 25, 2026

DENVER — For decades, milk volume was the primary measure of dairy performance. Higher rolling herd averages and larger milk tanks generally meant higher revenue.

That equation is changing, notes a new report from CoBank’s Knowledge Exchange authored by Corey Geiger and Abbi Groves.

As consumer demand shifts from milk toward cheese, whey, butter and other manufactured products, the value of milk increasingly depends on its butterfat and protein content. Under multiple component pricing (MCP), those components now are major drivers of milk check revenue.

CoBank’s analysis of seven federal milk marketing orders (FMMOs) using MCP shows how much money is at stake. At average U.S. milk production, herds in the top 10% for component performance earned $101 to $352 more per cow annually than herds in the bottom 10%. At a 90-pound tank average, the advantage grew to $136 to $474 per cow.

For a 1,000-cow dairy, that difference can represent hundreds of thousands of dollars in annual milk check value.

U.S. milk is becoming richer in valuable components, the report notes. From 2011 to 2025, national butterfat increased from 3.71% to 4.32%, a gain of 0.61 percentage points. Protein increased from 3.08% to 3.32%, a gain of 0.24 percentage points.

The change is even more apparent when looking at pounds produced. From 2010 to 2025, U.S. milk production increased 18.4%, while protein production rose 27.7% and butterfat production jumped 34.6%.

In other words, dairy cows are producing more valuable solids without a proportional increase in milk volume, the report says.

The report demonstrates the Upper Midwest FMMO averaged 4.37% butterfat and 3.33% protein in 2025. But the difference between high- and low-component herds was significant.

The top 10% averaged 4.44% butterfat and 3.38% protein, compared with 4.16% and 3.23%, respectively, for the bottom 10%.

At average U.S. production of 24,390 pounds per cow annually, that difference translated into about $0.70 more per cow per day in butterfat and protein value for the top group, assuming equal milk volume, the report says.

At a 90-pound tank average, the advantage increased to approximately $0.95 per cow per day, or $345.58 per cow annually. That equates to about $34,558 for a 100-cow dairy, $345,582 for a 1,000-cow dairy and more than $3.45 million for a 10,000-cow dairy.

Top Upper Midwest herds producing 90 pounds of milk per day now average about 7 pounds of combined butterfat and protein — up from roughly 6 pounds a decade ago.

Meanwhile, the financial opportunity differs substantially among FMMOs because component levels vary from one herd to another, the report says.

The Mideast order had one of the narrowest butterfat spreads. Top-decile herds averaged 4.35%, compared with 4.24% for the bottom decile.

The Southwest showed the widest spread: 4.52% for the top decile versus 4.07% for the bottom — a 0.45-percentage-point difference.

Protein showed similar variation. The Pacific Northwest had the widest protein spread, with top-decile herds averaging 3.51% compared with 3.28% for the bottom decile.

Those differences translate directly into milk check value. At average U.S. production, Mideast top-decile herds had a $101.44-per-cow annual advantage over the bottom decile. In the Southwest, the advantage was $352.22.

At 33,000 pounds of annual milk production, those figures increased to $136.62 and $474.39 per cow, respectively.

For a 1,000-cow Southwest dairy, the latter represents nearly $474,000 in annual component value.

The industry’s traditional focus on milk volume remains useful, but it no longer tells the entire revenue story, the report says.

For producers paid under MCP, pounds of butterfat and protein increasingly deserve to be tracked alongside milk production. Useful measures include pounds of butterfat per cow, pounds of protein per cow, combined component pounds and component value per cow.

Processors are also creating additional incentives for valuable components. Some pricing programs now incorporate products such as whey protein concentrate and whey protein isolate, further increasing the economic value of protein production.

The broader trend is clear: U.S. dairy cows are producing milk with more valuable solids, and those components are becoming increasingly important to farm revenue, the report says.

At the current pace of improvement, U.S. milk could approach 5.0% butterfat and 4.0% protein before 2035.

The key question for dairy producers therefore is evolving from “How much milk does the cow produce?” to “How much valuable component does she produce — and what is it worth?” the report concludes.

To read the report, visit www.cobank.com/knowledge-exchange/higher-component-herds-capture-bigger-milk-checks.

CMN

August milk production is up 1.8% in 24 major U.S. states

September 25, 2026

WASHINGTON — Milk production in the 24 major milk-producing states in August totaled 19.17 billion pounds, up 1.8% from August 2025’s 18.83 billion pounds, according to data released this week by USDA’s National Agricultural Statistics Service (NASS). July revised production for the 24 major states was 19.30 billion pounds, a decrease of 100 million pounds or 0.5% from the previous month’s preliminary production estimate. (All figures are rounded. Please see CMN’s Milk Production chart.)

For the entire United States, August milk production was estimated at 19.90 billion pounds, up 1.7% from August 2025’s 19.56 billion pounds.

August production per cow in the 24 major states averaged 2,070 pounds, up 4 pounds from August 2025 and down 17 pounds from July. For the entire United States, production per cow in August is estimated at 2,049 pounds, down 1 pound from August 2025 and down 19 pounds from July.

NASS reports the number of milk cows on farms in the 24 major states was 9.26 million head in August, up 151,000 head from August 2025 and up 15,000 head from July. In the entire United States, there were an estimated 9.71 million head in August, up 167,000 head from August 2025 and up 15,000 head from July.

California led the nation’s milk production in August with 3.39 billion pounds of milk, down 0.7% from August 2025. Wisconsin followed with 2.83 billion pounds of milk produced in August, up 1.5% from August 2025.

CMN

Today's Cheese Spot Trading
October 12, 2026

Barrels: $1.4525 (NC)
Blocks: $1.3900 (+1/2)

Click here for more market activity

When is it time to let
the next generation lead?

Norm Monsen, Creative Business Services/CBS-Global

Historically inexpensive
cheese futures: What to do?

Betty Berning, HighGround Dairy

© 2026 Cheese Market News • Quarne Publishing, LLC • Legal Information • Online Privacy Policy • Terms and Conditions
Cheese Market News • Business/Advertising Office: P.O. Box 24 • Sun Prairie, WI 53590 • 608/831-6002
Cheese Market News • Editorial Office: 5315 Wall Street, Suite 100 • Madison, WI 53718 • 608/288-9090