The USDA Foreign Agricultural Service’s July 2025 “Dairy: World Markets and Trade” report provides a biannual update on U.S. and global dairy trade, production, consumption, and stocks, covering cow’s milk, cheese, butter, skim milk powder, and whole milk powder.

Key U.S. Export Trends

• Record export growth in U.S. dairy products over the past 18 months, driven by a surge in cheese and butter shipments to every major regional market USDA Foreign Agricultural Service.
• Butter exports grew 148% over the past year, while cheese exports rose 21%, making these two products the main drivers of export value gains USDA Foreign Agricultural Service.
• The shift in export geography is notable: historically, 72% of U.S. butter exports went to North America in 2024, but by 2025 and into early 2026, North America’s share dropped to 44%, with stronger growth in East Asia, the Middle East and North Africa (MENA), and Oceania USDA Foreign Agricultural Service.
• Canada and Mexico saw butter export growth of 51% and 206% in 2025, with year-to-date 2026 exports ahead of 2025 levels by 2% and 49% respectively USDA Foreign Agricultural Service.

Global Demand Drivers

• Strong global demand for milkfats, especially in Southeast Asia, MENA, and China, with some of the fastest year-over-year demand growth in several years USDA Foreign Agricultural Service.
• Cheese and butter demand is particularly robust, with the U.S. accounting for the majority of global volume growth in early 2026 USDA Foreign Agricultural Service.
• Foodservice activity is accelerating consumer adoption of cheese, boosting retail and institutional demand USDA Foreign Agricultural Service.

Strategic Shifts

• U.S. exporters are diversifying beyond North America, spreading volumes more evenly across a broader set of markets USDA Foreign Agricultural Service.
• This diversification is supported by years of investment in U.S. processing capacity and favorable production conditions, which have strengthened U.S. price competitiveness relative to other major exporters like the EU and New Zealand USDA Foreign Agricultural Service.

Context

The report also notes that fluid milk production in the U.S. is projected for consecutive years above 2% growth, further supporting export competitiveness USDA Foreign Agricultural Service.

For full data, charts, and historical comparisons, the USDA FAS report is available on its official site USDA Foreign Agricultural Service.