U.S. dairy exports show mixed results as milk powder sales decline

USA –  U.S. Dairy Export Council (USDEC) report has revealed that weaker milk powder sales are putting a damper on an otherwise positive year for U.S. dairy exports. 

Despite gains in other dairy categories, the drop in milk powder demand has raised concerns among industry experts about global market trends and competition.

According to the USDEC, U.S. dairy exports have seen solid growth in products like cheese and whey, which continue to perform well in international markets. 

However, milk powder, a key export commodity, has struggled due to reduced demand from major buyers, particularly in Asia. 

This decline contrasts with an overall upward trend in dairy shipments, highlighting a mixed picture for the industry in 2025. 

The report points to increased competition from countries like New Zealand and the European Union as a contributing factor, alongside shifting consumer preferences in key markets.

Industry analyst Mark Thompson, quoted in the report, said, “The milk powder segment is facing tough headwinds this year, but the strength in cheese and whey exports shows the resilience of the U.S. dairy sector.” 

His comments reflect a cautious optimism, as exporters adapt to changing global conditions. 

The USDEC data also shows that cheese exports rose by 8% in volume compared to last year, driven by steady demand in Latin America and Southeast Asia, while whey shipments have benefited from growing interest in high-protein products.

The weaker milk powder sales come at a time when U.S. producers are grappling with higher production costs and fluctuating milk prices at home. 

This has put additional pressure on exporters to find new markets and maintain competitiveness. 

The report suggests that efforts to promote lactose and specialty dairy ingredients could help offset losses in the milk powder category.

A spokesperson from the National Milk Producers Federation, Jane Carter, addressed the issue directly: “We’re working closely with trade partners to boost demand for all dairy products, not just milk powder.” 

Meanwhile, a search of recent web updates reveals that U.S. dairy exports hit a record high in 2022, but growth has slowed since then due to economic uncertainties and supply chain disruptions.

The USDEC report concludes that while milk powder sales remain a weak spot, the broader outlook for U.S. dairy exports remains positive. 

With strategic adjustments and continued focus on high-demand products, the industry aims to navigate these hurdles and sustain its global presence through the rest of 2025.