South America

U.S. Dairy Exports Surge to $9.51 Billion in 2025

Fri, 20 Feb 2026 17:50:01 GMT

The U.S. dairy industry closed 2025 just shy of an all-time export record, signaling strong global demand and growing diversification across international markets.

According to calendar year 2025 data released by USDA, U.S. dairy exports reached $9.51 billion, narrowly missing the record $9.54 billion set in 2022. That total is up 15% from 2024, showing how U.S. dairy continues to gain ground in global markets.

In addition to higher value, export volumes also increased. According to the International Dairy Foods Association (IDFA), U.S. dairy exports totaled 2.8 million metric tons in 2025, up 5% from the previous year. Growth was driven largely by expanding demand in the Middle East, North Africa, South Asia and South America, regions that are playing an increasing role in strengthening and diversifying U.S. dairy exports.

“This near-record year demonstrates that U.S. dairy exporters are succeeding in diversifying both markets and product portfolios,” says Michael Dykes, IDFA president and CEO. “Growth across North Africa, South Asia, the Middle East, South America and the European Union reflects a deliberate strategy to reduce concentration risk, deepen customer relationships and compete in emerging and established markets alike. Today, U.S. dairy exports reach 143 countries, and our product mix spans consumer-ready foods, high-value ingredients and specialized nutrition products — a level of diversification that strengthens long-term export resilience.”

Regional Growth Highlights

Export growth in 2025 was broad-based, with several regions posting double- and even triple-digit gains. The following breakdown from IDFA highlights how U.S. dairy exports performed by region:

North Africa — Exports surged 107% by value and 69% by volume, reflecting accelerating demand across the region.
Middle East — Exports grew 48% by value and 19% by volume, driven largely by processed cheese, sweetened milk powder, whey protein powder and concentrate, lactose and natural milk products.
South Asia — Exports grew 63% by value and 25% by volume, led by strong growth in India, Pakistan and Sri Lanka. U.S. dairy exports to India alone increased 71% by value and 31% by volume.
South America — Exports grew 14% by value and 7% by volume.
Central America — Exports grew 19% by value and 13% by volume.
North America — Exports grew 6% by value and 2% by volume.
East Asia — Exports grew 14% by value and 2% by volume.
European Union — Exports increased 61% by value and 69% by volume.
Sub-Saharan Africa — Exports grew 9% by value.

Higher-Fat Products Help Drive Momentum

Demand for higher-fat dairy products saw a sharp increase in 2025, contributing to overall growth in U.S. dairy exports. Global export volumes rose by approximately 165% for butter and milk fat and by 56% for whole milk powders, reflecting shifts in global purchasing patterns and increased use of these products in both consumer foods and food manufacturing.

Several other categories also posted solid gains. Dairy spreads, whey protein concentrates and cheese were among the stronger-performing products, indicating continued demand for both value-added ingredients and consumer-ready dairy products across a range of markets.

Combined with broader regional growth, higher export volumes and near-record export value, U.S. dairy continues to expand its role in international markets.

“Looking ahead, our industry is poised for even greater growth,” Dykes says. “A renewed trade agenda that expands market access, strengthens enforcement and opens new opportunities in Southeast Asia, Latin America, North Africa and the Middle East will allow U.S. dairy exporters to compete and win in markets around the globe.”

With momentum already built in 2025, the outlook for 2026 points toward continued export gains fueled by expanding opportunities.

Rising Milk Prices Start to Choke Demand in South America

Wed, 25 May 2022 14:52:27 GMT

A worldwide milk production contraction has begun to hit South America, despite the region’s eagerness to fill dairy needs left unmet by other nations. As processors scramble to obtain much needed milk supplies, the resulting rapid run-up in milk prices has started to threaten dairy demand in an area of the world where overall inflation and food inflation are particularly severe.

Monica Ganley, analyst for the Daily Dairy Report and principal of Quarterra, an agricultural consulting firm in Buenos Aires, said that as the Southern Hemisphere moves toward winter, milk availability has fallen off seasonally, but margin challenges on the farm and intermittent weather issues have also further limited milk output.

“High prices for feed, fuel, and fertilizer are also amplifying the downward pressure on producer profitability, forcing processors to increase milk prices to maintain milk volumes,” she added.

Argentina’s dairy processors remain well positioned to fill some of the supply gaps that have developed in export markets. However, to generate enough milk to meet this export demand, Ganley said processors have had to raise farm milk prices in April to an equivalent of $16.86/cwt., the highest farm milk price in Argentina since mid-2014.

“Fortunately for Argentina’s dairy sector, seasonal temperatures and sufficient precipitation have supported milk production growth in recent months,” Ganley noted. Thus, despite a year-over-year dip in milk production in January, when sweltering summer temperatures reigned, Argentine output for first-quarter 2022 grew 1.6%, compared to the first quarter last year.

“Uruguay processors have raised milk prices even higher,” she said. “With a population of just 3 million people, Uruguay sends most of its milk to the export market. Over the past year, Uruguay increased its exports to China as production in New Zealand faltered. While Uruguayan processors and exporters have been keen to continue this trend, the country’s milk production has fallen in recent months.”

For the first three months of this year, Uruguay’s milk volumes dropped 1% compared to first-quarter 2021, due primarily to structural changes within the industry, including the exit of a large international dairy farming company. To overcome this loss, processors increased March milk prices to the U.S. equivalent of about $18.55/cwt., also the highest price since 2014.

South America’s dairy importing countries have also seen prices rise. In Brazil, where the year-over-year milk production drop was 1.9% in 2021 and inflation has been ongoing since the start of the pandemic, industry contraction has accelerated. For the first quarter of 2022, year-over-year milk production volumes fell by 10.5% as producers strapped with sky-high operating costs have elected to exit the business, she said.

“The weather in Brazil has also been very inconsistent, with pockets of exceptionally dry and/or wet weather interrupting the normal trajectory of milk production,” Ganley noted. “Thus, processors in Brazil have been forced to compete for remaining milk volumes.” That pushed prices to a shocking high of $22.54/cwt. in April. In Chile, meanwhile, farm milk prices in March climbed to $20.08, and in Colombia, they soared to $21.57/cwt. to encourage more output in these already milk deficit countries.

“While South American producers—like those elsewhere—welcome higher prices and consider them necessary to overcome the current increase in operating costs, concerns are mounting about the impact these prices will have on consumer demand,” Ganley said. “Elevated milk prices are translating into higher retail milk and dairy product prices for consumers in South America—where food prices have risen dramatically—and evidence is mounting that these prices are already beginning to choke demand.”