U.S. Dairy Exports Rose 9% and Reached Record Value
U.S. dairy exports grew by 9% in milk-solids-equivalent terms during the first six months of 2026, according to the US Dairy Export Council. Export value rose by 12% to $5.31bn, the highest figure recorded for a first half. If the pace continues through the rest of the year, annual foreign sales would exceed $10bn for the first time.
Cheese remained the main contributor to the increase. Shipments were 24% higher than in the same period a year earlier, putting the sector on course to exceed 700,000 tonnes for the full year. U.S. cheese exports reached 510,270 tonnes in 2024 and 612,671 tonnes in 2025. Mexico was the largest destination, with purchases up 32%, or 30,224 tonnes. South Korea increased imports by 36%, while shipments to South-East Asia rose by 55%.
U.S. cheese prices remained competitive with supplies from the European Union and New Zealand. That supported sales despite a 17% fall in shipments to the Middle East and North Africa. Maritime logistics in that region were disrupted by regional conflicts, according to the report.
Butterfat exports also expanded. Shipments doubled in several months of the first half, following a 7% increase in U.S. butter production over the previous year. The larger supply kept prices competitive for 18 consecutive months. Exports to the Middle East and North Africa rose by more than 400% after land-based logistics were redirected through Saudi Arabia following the closure of the Strait of Hormuz. Shipments to Japan increased by 383%, exports to South Korea nearly tripled, and those to Canada rose by 5%.
Exports of high-concentration whey protein concentrate, or WPC80+, moved in the opposite direction. Volumes fell by 21%, a reduction of 8,482 tonnes, as domestic demand absorbed more supply. The report linked that demand to changing consumption patterns and the growing use of GLP-1 medicines. International WPC80 prices rose from $10,000 a tonne in January 2025 to almost $29,000 in June 2026, a 76% year-to-date increase, limiting availability for China, South Korea and South America.
Non-fat dry milk and skimmed milk powder exports declined by 3%, or 10,614 tonnes, to 321,700 tonnes. That was the lowest first-half volume since 2017. The diversion of milk solids into protein products reduced powder production, while spot prices reached $5,060 a tonne in May. Higher prices weakened purchases by Mexico, the leading customer for the product, where shipments fell by 6% during the first half.
