U.S. Dairy Exports Reach Record $9B in 2025

Dairy Goes Global

In 2025, U.S. dairy exports hit an all-time high of $9 billion, cementing the nation’s role as a global supplier of cheese, milk powder, and butter. Rising demand from Asian and Middle Eastern markets has fueled this surge, despite ongoing challenges in logistics, feed costs, and climate pressures.

According to Bloomberg, dairy is now among the top five U.S. agricultural exports, a significant milestone for an industry often overshadowed by grains and meat.

The Numbers Behind the Surge

Total U.S. dairy exports: $9B in 2025, up 12% year-over-year (USDA).
Top markets: China, South Korea, Mexico, Saudi Arabia, and the UAE.
Cheese exports rose 15%, led by mozzarella and cheddar (Reuters).
Milk powder exports increased 10%, meeting demand in Southeast Asia.
Butter exports grew 8%, boosted by Middle Eastern bakery demand.

The Wall Street Journal noted that “the U.S. dairy sector has quietly become a powerhouse of global food supply.”

Why Asia and the Middle East Are Driving Demand

Rising Incomes: Middle-class consumers in China and Southeast Asia are buying more Western-style dairy.
Urbanization: Cities in the Middle East are adopting international diets that feature cheese-heavy fast food.
Population Growth: The UN projects 25% higher demand for dairy proteins in Asia by 2035.
Cultural Trends: Pizza, burgers, and bakery chains expanding into Asia and the Gulf depend heavily on imported cheese.

According to Eater, mozzarella demand in Asia has grown 20% annually, tied directly to the boom in pizza chains.

Supply Chain and Economic Impact

Shipping costs rose 12% in 2024 due to fuel prices (Financial Times).
Feed shortages pushed U.S. milk production costs up 9%.
Despite higher input costs, strong overseas demand kept margins healthy.
U.S. dairy farmers benefited from federal export credit programs and trade deals with Asia-Pacific nations.

As Forbes reports, “government-backed trade missions have opened new doors for dairy suppliers in the Gulf and East Asia.”

Challenges to Sustained Growth

Climate Pressure: Droughts in key dairy states cut yields by 5–7%.
Trade Politics: Ongoing disputes with Canada and the EU on dairy subsidies create volatility.
Sustainability Push: Exporters face rising pressure to reduce methane emissions from dairy herds (NYT).
Competition: New Zealand and the EU remain strong competitors in Asia’s dairy markets.

Consumer Impact and Global Trends

U.S. cheese in South Korea retail chains now sells for $12–15 per pound, 25% higher than domestic brands.
Dairy imports in Saudi Arabia rose 18%, with butter and cream leading growth.
U.S. milk powder is a staple for bakeries in Vietnam, Indonesia, and the Philippines.
Analysts project $12B in U.S. dairy exports by 2028 if growth holds.

Travel + Leisure even highlighted how dairy influences culinary tourism, with “cheese culture” tours becoming more common in Europe and North America.

Expert Insights

“The U.S. is no longer just feeding itself, it’s feeding the world’s appetite for cheese.” Financial Times analyst.
“Middle Eastern bakery growth is a hidden driver of butter demand.” Bloomberg.
“Sustainability will determine long-term competitiveness.” Harvard Public Health.

Conclusion: Dairy as a Strategic Export

The record-breaking $9B milestone underscores the strategic role of dairy in U.S. trade. Cheese, milk powder, and butter aren’t just food staples; they’re part of a global economic network shaping diets from Seoul to Riyadh.

For U.S. farmers, it’s proof that investments in efficiency and global branding are paying off. For international consumers, it means greater access to American dairy products even if prices rise along the way.

As WSJ concluded: “Dairy is no longer a quiet sector, or it’s one of America’s loudest export success stories.”