U.S. Dairy Exports Hit All-Time High of $10B

A Record Year for U.S. Dairy

In 2025, U.S. dairy exports reached an all-time high of $10 billion, marking a milestone for the agricultural sector. Driven by strong demand for cheese, milk powders, and value-added dairy products, American producers are expanding into new markets across Asia, the Middle East, and Latin America.

According to the U.S. Dairy Export Council (USDEC), this achievement highlights the resilience of U.S. farmers and processors, despite challenges such as fluctuating feed costs, climate pressures, and trade disputes.

The Numbers Behind the Boom

Total exports: $10B in 2025, up 12% from 2024 (Bloomberg).
Top markets: Mexico, China, South Korea, Japan, and Southeast Asia (USDA).
Cheese exports: Surpassed 600,000 metric tons, a 15% increase year-over-year (Reuters).
Milk powder exports: Skim milk powder (SMP) and whey account for nearly 40% of total export volume (FAO).
Butter and cream: Exports rose 9%, aided by Middle Eastern demand (Financial Times).

Statista projects the global dairy trade will continue expanding at 5% annually through 2030, with the U.S. well-positioned as a leading supplier.

Why Global Demand Is Rising

Cheese as a Global Favorite
From pizza in India to cheeseburgers in Brazil, cheese demand is surging worldwide. According to Eater, mozzarella and cheddar are the fastest-growing categories.
Nutritional Demand
Dairy remains a key source of calcium and protein, especially in developing markets where nutritional security is a priority (Harvard School of Public Health).
Foodservice Recovery
Post-pandemic dining rebounds in Asia and Latin America have boosted imports of U.S. cheese and cream (CNBC).
Value-Added Dairy Products
Yogurt, protein powders, and lactose-free products are expanding into premium segments (Bon Appétit).

U.S. Trade Strategy

The U.S. government and industry stakeholders have pushed to diversify dairy exports:

Mexico: Remains the largest buyer, accounting for nearly $2 billion in imports (USDA ERS).
China: Strong demand for whey protein powders used in infant formula and sports nutrition (WSJ).
Southeast Asia: Rapid urbanization drives demand for cheese-based snacks and processed foods (Travel + Leisure).
Middle East & North Africa: Imports butter and milk powders for bakery and confectionery industries (Reuters).

Economic Impact at Home

U.S. dairy exports support 100,000+ American jobs across farming, processing, and logistics (McKinsey).
Farmers earned 8–12% higher margins in 2025 due to record international demand (CNBC).
Dairy exports now account for 17% of U.S. milk production, up from 11% a decade ago (Financial Times).

The National Milk Producers Federation credits improved supply chain efficiencies and trade agreements with driving growth.

Challenges Ahead

While the record is cause for celebration, U.S. dairy exporters face hurdles:

Feed Costs: Rising corn and soybean prices increase production costs (Bloomberg).
Climate Change: Droughts in California and the Midwest threaten milk supply stability (NYT).
Competition: The EU and New Zealand remain major dairy competitors (FAO).
Sustainability Pressure: Consumers demand lower-carbon dairy production methods (Forbes).

Innovation in Dairy

Producers are innovating to stay competitive:

Sustainable Farming: Investments in methane reduction technology, such as cow feed additives (WSJ).
Dairy Alternatives: Hybrid dairy products blending milk with plant-based proteins (Bon Appétit).
Automation: Robotic milking and AI herd management boost efficiency (TechCrunch).
Premium Products: Artisanal and specialty cheeses are gaining traction in Europe and Asia (Eater).

Global Outlook

The U.S. Dairy Export Council predicts that by 2030, exports could reach $15 billion annually if current growth continues. Demand in Asia and Africa will be particularly strong, with urbanization and middle-class expansion fueling consumption.

The World Bank notes that rising incomes in developing economies will make dairy one of the fastest-growing food categories globally.

Conclusion: A Landmark for U.S. Agriculture

The $10B milestone for U.S. dairy exports is a testament to the sector’s resilience, adaptability, and innovation. From mozzarella on pizzas in India to whey protein shakes in China, American dairy is feeding the world while strengthening its role in global agriculture.

As the Financial Times put it: “Dairy has become both a cultural export and a strategic trade asset.”