As we move through 2025, the dairy industry is poised to experience significant transformations. According to Ben Laine, a senior dairy analyst with Terrain, there are three major structural changes that are intricately linked and set to shape the industry’s landscape: federal milk marketing orders, new cheese processing capacity, and trade dynamics.

Cheese and butter are clear deals in the export space — but some traders indicate that tariff uncertainty has given them a reason to pause on what would normally be lucrative purchases.

Dairy prices have been under pressure from lower demand and future demand uncertainty. Tariffs have cast a bearish cloud over the market. The first lab-grown milk without a cow has been successfully produced.

Mexico’s president said on Tuesday the country will respond to U.S. tariffs with a 25% tariff on U.S. goods, but she will hold off announcing the targeted products until Sunday.

President Trump’s new tariffs on imports from Canada, Mexico and China have gone into effect. While the economic consequences are unknown, Secretary of Agriculture Brooke Rollins has promised to have a plan ready for farmers, if needed.

At a pivotal junction of prosperity intertwined with uncertainty, the U.S. dairy industry seeks resolution to ongoing trade disputes. With committed leaders aiming to expand international partnerships, strategic negotiation appears essential for sustaining and enhancing the industry’s growth.