American cheese shatters the billion-pound export barrier as global demand surges! With 17% growth pushing exports past 508,000 metric tons and the U.S. crowned the #1 cheese supplier, discover how record-breaking dairy exports reshape farm economics and why the world can’t get enough of what your cows produce.

EXECUTIVE SUMMARY: U.S. dairy exports have reached unprecedented heights, with cheese shipments breaking the billion-pound barrier (508,808 metric tons) and total export values hitting $8.2 billion in 2024 – the second-highest ever. While total export volume dipped slightly (-0.4%), the industry’s strategic shift to higher-value products like cheese has created additional value for producers. With exports representing 18% of U.S. milk production and massive cheese processing expansion underway, American dairy farms producing high-component milk are uniquely positioned to benefit from this global demand surge.

KEY TAKEAWAYS:

• U.S. cheese exports smashed records, reaching 508,808 metric tons in 2024 (17% year-over-year growth)
• The United States is now the #1 cheese supplier to the world, with exports exceeding the billion-pound mark for the first time
• Overall, the value of dairy exports increased by 2% to $8.2 billion despite a slight 0.4% decline in volume.
• Mexico remains the top U.S. dairy customer, with exports growing 7% in 2024
• More than 450,000 metric tons of new cheese production capacity coming online between 2023-2026
• Exports now represent 18% of U.S. milk production, up from previous years
• Latin America showed exceptional growth, with record values for Mexico, Central America, and South America

As milk trucks rumble across frost-covered driveways before dawn, the familiar hum of their engines signals not just another local delivery but the beginning of a global journey. The sweet, grassy aroma of fresh milk that filled your bulk tank this morning might soon become cheese savored by families in Mexico City, Tokyo, or Seoul. The first months of 2025 have confirmed what industry insiders call a transformative shift in U.S. dairy’s position on the world stage – with American cheese now dominating international markets at record volumes.

American cheese exports reached 508,808 metric tons in 2024, making the U.S. the world’s leading cheese supplier. Processing plants across the country are working at capacity to meet international demand.

U.S. CHEESE CRUSHES EXPORT RECORDS: FIRST-EVER BILLION-POUND MILESTONE

American cheese has officially conquered global dinner tables in a way that would make our grandfathers’ jaws drop. U.S. cheese exports reached a staggering 508,808 metric tons (1.12 billion pounds) in 2024, a 17% jump from the previous record. The sharp, nutty aroma of aged cheddar and the creamy reliability of American mozzarella are winning international fans at an unprecedented rate.

Think about it this way: if you lined up all the cheese America exported last year, it would stretch from New York to Los Angeles and back – twice. Approximately 45 billion grilled cheese sandwiches worth of dairy protein are feeding families worldwide.

Throughout 2024, the U.S. leveraged competitive pricing, consistent quality, and strong production capacity to position itself as the world’s leading cheese supplier. This global leadership directly translated to more vigorous milk checks for farmers, providing critical revenue streams when input costs for feed, labor, and compliance remained stubbornly high.

“The United States is already the No. 1 cheese supplier to the world, and we know we can strengthen our position in the years ahead,” noted Krysta Harden, president and CEO of the U.S. Dairy Export Council. This statement isn’t just industry optimism – it’s backed by complex numbers showing American cheese consistently winning market share from European and Oceanian competitors.

MASSIVE PROCESSING EXPANSION CREATES NEW MILK MARKETS

The distinctive whine of construction equipment at new cheese plant sites represents music to dairy farmers’ ears. The tang of freshly welded stainless steel and the rhythmic hum of new pasteurizers being tested signal more than industrial development – they represent crucial new markets for your milk.

More than 450,000 metric tons of new U.S. cheese production capacity will come online between 2023 and 2026, creating critical outlets at a time when domestic consumption alone cannot absorb increasing production.

Your dairy operation is increasingly connected to global markets, with exports accounting for 18% of U.S. milk production. Every tanker leaving your farm potentially contributes to America’s export success.

For dairy farms in regions like the Upper Midwest, Southwest, and Idaho, where these plants are growing, the investment signals long-term confidence in American dairy’s future. Manufacturers wouldn’t be pouring millions into stainless steel if they weren’t betting on your ability to supply high-quality milk for decades.

The timing couldn’t be better, as component levels in American milk continue their upward march. Today’s Holstein herds regularly produce milk testing above 4.0% fat and 3.2% protein, which would have seemed impossible twenty years ago. These higher component concentrations translate directly to cheese yield, creating a win-win for processors and the farmers supplying them.

COMPONENT ENHANCEMENT: YOUR STRATEGY FOR EXPORT PROSPERITY

The global cheese boom means your focus on components has never been more valuable. Farms producing milk with above-average butterfat and protein are capturing premium prices as processors compete for milk that yields more cheese per vat.

What practical steps can boost your components and position your operation for export market success?

Nutritionists point to several evidence-based strategies: increasing the forage-to-concentrate ratio (particularly with high-quality corn silage), precisely balancing amino acids, and ensuring adequate, effective fiber to maintain butterfat. Leading herds also make genetic selection decisions heavily weighted toward component traits, recognizing that minor percentage improvements multiply millions of pounds of lifetime production.

John Wilson, a third-generation Wisconsin dairy farmer, implemented these strategies and saw dramatic results. “We increased our components by focusing on cow comfort, forage quality, and genetics. Over three years, our fat test increased from 3.8% to 4.2%, and we’re capturing a premium of almost per hundredweight,” Wilson explains as he walks through his milking parlor where the rhythmic pulse of vacuum pumps provides a steady backbeat to his morning routine. “With exports driving cheese demand, these components are our ticket to staying profitable.”

CHEESE BOOM OFFSETS POWDER SLUMP: MIXED EXPORT PICTURE

While cheese export growth dominates headlines, the overall dairy export landscape shows a more complex picture directly impacting your bottom line. Total U.S. dairy exports slipped by 0.4% in milk solids equivalent terms during 2024, primarily due to weakness in nonfat dry milk/skim milk powder (NFDM/SMP) markets.

NFDM/SMP exports faced significant challenges, with December 2024 volumes plunging 23% (14,992 metric tons) to 49,565 metric tons – the first time monthly sales fell below 50,000 since July 2019. This powder performance dip meant milk could have found international homes instead of pressured domestic markets.

U.S. NFDM/SMP exports declined 8% for the entire year, mainly due to reduced U.S. production, limited available supply, and pricing issues that favored competitors. The contrast between thriving cheese exports and struggling powder markets highlights why diversified export strategies matter for industry stability.

Despite the volume dip, the value of U.S. dairy exports reached $8.2 billion in 2024 – a 2% increase ($202 million) and the second-highest total ever, trailing only 2022’s $9.7 billion. This value growth reflects the industry’s strategic shift toward higher-value products like cheese, creating more dollars per hundredweight for producers.

Source: U.S. Dairy Export Council, 2025

MEXICO & LATIN AMERICA: THE MARKETS DRIVING YOUR MILK CHECK

When you watch tank trucks pull away from your farm, the diesel exhaust mingling with the sweet scent of fresh milk, you might not realize how many are ultimately bound for Mexican dinner tables. Latin America has emerged as the foundation of American dairy export success, with Mexico alone purchasing $2.47 billion in U.S. dairy products in 2024.

As you sip your morning coffee, farmers across Mexico are incorporating U.S. cheese into breakfast dishes – the sizzle of melting cheese in quesadillas and the stretch of mozzarella in countless dishes, driving a 7% increase in exports to our southern neighbor last year. This growth isn’t just happening in Mexico – U.S. dairy export volume gained across South America (+6%) and Central America, with countries like Costa Rica, Guatemala, and El Salvador all setting new import records.

Mexico’s growing appetite for U.S. dairy drove $2.47 billion in exports in 2024, supporting milk prices for American farmers. The popularity of cheese-based dishes throughout Latin America creates steady demand for U.S. dairy products.

What is the significance of your operation? This regional strength creates crucial outlets for American milk production that would otherwise depress domestic prices. Every semi-truck of cheese crossing the southern border represents milk that doesn’t weigh down your local market.

“I’ve completely changed how I think about our market,” says Maria Hernandez, whose 850-cow operation in California produces high-component milk primarily destined for export markets. Standing in her feed alley as the distinctive sound of mixer wagons and the earthy scent of TMR fill the air, she continues, “We’re essentially feeding families in Mexico City and Lima now, not just our domestic market. That global connection has made me more focused on consistency and quality than ever.”

Source: International Dairy Foods Association, 2025

NAVIGATING EXPORT HEADWINDS: TRADE TENSIONS AND MARKET VOLATILITY

The road to export growth isn’t without potholes that could jolt your operation’s planning. U.S. dairy exporters faced significant headwinds in 2024, including Chinese demand contraction for the third straight year and intensified competition from New Zealand and European suppliers aggressively targeting traditional U.S. export destinations.

U.S. dairy exports to China reached their lowest annual total since 2020, a troubling trend given China’s critical market for American whey products used in its massive pork industry. Meanwhile, Oceanian suppliers have reworked their product mix to target Latin American and Southeast Asian markets, driving margin compression in regions where U.S. dairy previously enjoyed more substantial positions.

Trade policy uncertainty adds another layer of complexity to your farm planning. In early 2025, President Donald Trump agreed to a 30-day pause on tariff threats against Canada and Mexico. Since these nations represent more than 40% of U.S. dairy exports, any tariff implementation could trigger retaliatory measures that disproportionately target agricultural products – potentially stranding significant milk volumes in domestic markets and pressuring prices.

How should your farm navigate these uncertainties? Financial advisors recommend maintaining higher cash reserves than historical norms, carefully evaluating major capital expenditures, and considering risk management tools like forward contracting and futures markets to lock in profitability during favorable windows.

YOUR FARM’S STAKE IN THE EXPORT BOOM: POSITIONING FOR PROFIT

As morning fog lifts from your pastures and the first rays of sunlight catch the steam rising from cows’ breath in the cool morning air, the international connections of your operation become increasingly apparent. Approximately one day’s milk produced on America’s dairy farms each week is exported – roughly 18% of all production. Your contribution to feeding the world has never been more direct or economically significant.

Expanding processing capacity proves that your future is increasingly tied to global markets. New cheese plants online between 2023 and 2026 represent massive bets on American dairy’s international competitiveness. These facilities wouldn’t exist without confidence in your production capacity and the world’s appetite for what your cows produce.

For forward-thinking producers, this export-driven future demands strategic decisions. Component enhancement provides immediate returns, but other factors increasingly influence your competitiveness in export-focused processing:

• Milk with superior microbiological quality enjoys longer shelf-life in international transport
• Consistent component levels throughout the year (avoiding seasonal swings) create processing efficiencies
• Sustainability credentials increasingly influence purchasing decisions, particularly in premium markets
• On-farm practices that minimize heat-sensitive protein damage produce superior yields in high-heat cheese applications typical in export markets.

“We’ve shifted our management to focus on what I call ‘exportable milk quality,'” explains Thomas Johnson, whose 450-cow Michigan dairy consistently earns quality premiums. The crisp smell of sanitizer and the gentle whoosh of automatic detachers provide the backdrop as he monitors the milking process. “Beyond basic components, we’ve reduced our somatic cell count below 100,000, implemented cooling that gets milk below 38°F within 30 minutes of harvest, and documented our carbon footprint reduction. These steps directly translate to premiums from processors serving export markets.”

Sources: U.S. Dairy Export Council, International Dairy Foods Association, 2025

THE FUTURE IS GLOBAL: WHY EXPORTS MATTER MORE THAN EVER

The billion-pound cheese milestone represents more than just a number – it symbolizes American dairy’s transformation from a domestic industry to a global powerhouse. This global connection provides crucial stability for your operation as domestic consumption patterns evolve and production efficiency continues improving.

As you walk through your barn today, the familiar sounds of cows crunching feed and the rhythmic pulse of milking equipment serve as the backdrop to an increasingly global enterprise. The milk your cows produce increasingly travels to dinner tables your grandparents couldn’t have imagined reaching. From Mexican pizza toppings to Japanese cheese boards, American dairy products have become essential ingredients in global cuisine.

“Our industry is poised to become the world’s leading supplier of dairy products thanks to the resilience and innovation of the American dairy industry,” said Michael Dykes, president and CEO of the International Dairy Foods Association. “Overall, U.S. dairy exports are performing well, but we can do more. With new trade agreements that remove obstacles and increase market access, we wouldn’t just break records – we would redefine the global dairy landscape for decades to come.”

The path forward requires both individual farm adaptation and collective industry action. Your focus on components, quality, and sustainability positions your operation for success while industry organizations work to secure favorable trade terms and develop new markets. This partnership between progressive producers and forward-thinking processors has transformed American dairy from a regional industry into a global powerhouse – with your farm playing a crucial role in feeding a hungry world.

LEARN MORE:

• U.S. Dairy Farmers Cracking the Code on High-Component Milk Production
• How Mexico Became America’s Most Valuable Dairy Customer: The Inside Story
• Next-Generation Cheese Plants: What Farmers Need to Know About Processing Expansion

Join the Revolution!

Join over 30,000 successful dairy professionals who rely on Bullvine Daily for their competitive edge. Delivered directly to your inbox each week, our exclusive industry insights help you make smarter decisions while saving precious hours every week. Never miss critical updates on milk production trends, breakthrough technologies, and profit-boosting strategies that top producers are already implementing. Subscribe now to transform your dairy operation’s efficiency and profitability—your future success is just one click away.