DairyTalk 176: From Arbitrage to Oversupply - The Structural Reset of Dairy Markets - by Helmut Demmelhuber

The global dairy market crashed in mid-December 2025 - even as
U.S. exports hit record levels. Historically low feed costs are
preventing the usual supply correction, keeping production high
despite collapsing prices. Butter and cheese markets fell
simultaneously across regions, signaling that traditional
arbitrage mechanisms have broken down. With processors pivoting
from butter to cheese and inventories set to collide with the
2026 spring milk flush, the industry faces a structural reset.
Survival will depend on cost discipline, component optimization,
and adapting to permanently lower baseline prices. With comments
on a "The Bullvine"-article (December 15th, 2025) by Andrew Hunt:
https://www.thebullvine.com