The modest decline in production is being cushioned by continued strong farmgate milk prices and lower feed grain costs. Domestic fluid milk consumption in 2025 is projected to decrease by 0.4% to 2.435 MMT. Flavoured milk consumption remained flat, and no-fat milk saw a slight decrease. Factory-use milk consumption in 2025 is expected to decline by 1.2% to 5.988 MMT, mainly due to the overall reduction in milk production. Improved global prices in 2024, along with carryover supply from the previous year, contributed to elevated exports for 2024, with 2025 expected to reflect a return to more balanced conditions.