Milk production for July was up two percent on the month as a larger herd and improving per cow output adds to a growing supply.
USDA says production in the U.S. for the month totaled more than 19 billion pounds, with production per cow up 14 pounds from last year.
The herd size was up 128,000 head on the year but down 3,000 from last month.
South Dakota production grew 17 percent followed by Texas, up more than seven percent, and Indiana, up nearly six percent.