U.S. Dairy Exports Surge As Milkfat Markets Expand

Growth in dairy exports will be crucial as domestic milk output rises. Strong foreign demand can help absorb extra production, reduce inventory, and support milk prices.

herd of cows in cowshed on dairy farm_Photo by Syda Productions via AdobeStock_132201757.jpg

Photo by Syda Productions via Adobe Stock

WASHINGTON, D.C. (RFD NEWS) — U.S. dairy exports are reaching new records as cheese and butter shipments expand into more global markets. USDA’s Foreign Agricultural Service says rising milk production, new processing capacity, and favorable prices are strengthening the country’s export position.

Butter exports grew 148 percent over the past year, while cheese shipments increased 21 percent. Those two products generated about two-thirds of the increase in total U.S. dairy export value.

Export growth is also becoming less dependent on Canada and Mexico. North America’s share of butter shipments fell from 72 percent in 2024 to 44 percent across 2025 and the first five months of 2026 as sales expanded across Asia, Europe, Oceania, the Middle East, and Africa.

U.S. cheese exports are forecast to rise 23 percent in 2026 to 751,000 metric tons. Butter exports are projected to increase 40 percent to 171,000 metric tons.

Continued export growth will be important as domestic milk output increases. Strong foreign demand could absorb additional production, limit inventory buildup, and support producer milk prices.

Farm-Level Takeaway: Expanding cheese and butter exports provides a critical outlet for growth in U.S. milk production.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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