Processing Investments Drive Export Momentum
U.S. cheese exports continue to strengthen, supporting a broader surge in global dairy trade. Rising milk production and sustained investment in processing capacity across key dairy states such as Wisconsin, Texas, Kansas, Minnesota, and Idaho are underpinning this growth. New and expanded cheese plants allow processors to respond quickly to rising international demand and improve product mix and efficiency.
These investments have helped U.S. exporters gain market share in major importing regions. Shipments to Asia and the Western Hemisphere increased sharply in 2025, with strong growth recorded in markets such as Japan, South Korea, and Australia. Demand spans multiple cheese varieties, reflecting the flexibility and scale of the U.S. dairy sector.
Competitive Landscape Shows Diverging Trends
Global competition in cheese exports remains uneven. The European Union is expected to see slightly lower cheese shipments due to tighter milk supplies and strong domestic consumption, which limit export availability. In contrast, New Zealand and Australia are set to expand cheese exports, supported by stable production and export-focused strategies.
Australia, in particular, is projected to reach its highest cheese export volume in a decade. Despite these gains, overall global cheese trade growth in 2026 is expected to remain modest. Within this environment, the United States is positioned as one of the leading contributors to incremental trade growth.
Cheese Leads Broader U.S. Dairy Trade Recovery
The rise in cheese exports forms part of a wider recovery in U.S. dairy trade. Data from early 2025 show an increase in overall dairy exports, supported by continued demand for cheese and butterfat. Other product categories, including whey and milk powders, face mixed market conditions due to price pressure and shifting demand patterns.
Strong cheese performance highlights the resilience of U.S. dairy exports. Long-standing trade relationships continue to support volumes in established markets, while new opportunities are emerging across Asia, Oceania, and Latin America. Together, these trends reinforce cheese as a cornerstone of the U.S. dairy industry’s global trade strategy.