US Dairy Prices Squeezed by Surplus Milk as Saputo Posts Strong Q1 Earnings

U.S. dairy producers are facing lower farm‑gate milk prices as milk output continues to rise while domestic demand remains flat. The growing supply, driven by higher cow numbers and improved per‑cow productivity, has kept prices for butterfat, protein and other components under pressure.

Saputo Inc. reported that its U.S. division protected profitability despite the market imbalance. For the quarter ending June 30, the division posted higher operating margins and earnings before interest and taxes, beating analysts’ expectations. Saputo’s adjusted earnings per share rose to $0.49 from $0.42 a year earlier, and net profit for the company reached $183 million, with revenue up 1.5% to $4.4 billion. CEO Carl Colizza noted strong demand for dairy proteins, which helped offset the broader price weakness.

The combined outlook suggests that supply‑demand dynamics will continue to drive U.S. dairy pricing in the near term.