China’s Ghost: Dairy Exports Face Headwinds
Sourse: dairynews.today
US dairy exports face a challenging May 2025 with strong cheese sales overshadowed by a 15-year low in Chinese demand.
The global dairy market is currently navigating a complex landscape, with U.S. dairy exports in May 2025 reflecting mixed results, heavily influenced by a significant drop in demand from China. While overall export values saw a positive 13 percent increase, reaching $803 million, total dairy shipments dipped nearly two percent. This decline is largely attributed to ongoing tariff tensions and a concerning slump in Chinese demand, reaching levels not seen in 15 years, creating a substantial overhang for the entire dairy sector.
Despite the challenging environment posed by China’s reduced appetite, other markets showed resilience. Notably, sales to Canada increased by six percent due to favorable U.S. prices. Furthermore, U.S. cheese exports set a new record volume, demonstrating strong performance. However, these gains were offset by a 12 percent decrease in shipments to Mexico, a vital trading partner for American dairy producers.
While total butterfat export sales were on a record pace for the year with volumes soaring over 150 percent compared to 2024, the decline in Chinese purchasing remains a dominant factor. Nonfat dry milk/skim milk powder saw a modest two percent increase, indicating underlying strength despite an 80 percent demand drop from China.
Meanwhile, low-protein whey shipments dropped 25 percent, with China accounting for 70 percent of this decrease.
These figures suggest the international dairy community must re-evaluate market dependencies and develop alternative high-growth regions to ensure long-term stability and profitability for American agribusiness in the dynamic global dairy trade.
Despite the challenging environment posed by China’s reduced appetite, other markets showed resilience. Notably, sales to Canada increased by six percent due to favorable U.S. prices. Furthermore, U.S. cheese exports set a new record volume, demonstrating strong performance. However, these gains were offset by a 12 percent decrease in shipments to Mexico, a vital trading partner for American dairy producers.
While total butterfat export sales were on a record pace for the year with volumes soaring over 150 percent compared to 2024, the decline in Chinese purchasing remains a dominant factor. Nonfat dry milk/skim milk powder saw a modest two percent increase, indicating underlying strength despite an 80 percent demand drop from China.
Meanwhile, low-protein whey shipments dropped 25 percent, with China accounting for 70 percent of this decrease.
These figures suggest the international dairy community must re-evaluate market dependencies and develop alternative high-growth regions to ensure long-term stability and profitability for American agribusiness in the dynamic global dairy trade.
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