U.S. dairy exports fell 5% year-over-year in June, according to the U.S. Dairy Export Council. It was the first monthly decline since September 2025. Cheese exports set a new monthly volume record over the same stretch.
Key Facts
- Down 19% from June 2025, U.S. nonfat dry milk and skim milk powder exports led the decline.
- Cheese exports rose 24% to a record 64,604 metric tons, led by Mexico.
- Whey shipments to China fell 26% from June 2025, as pork prices hit a 16-year low.
The year-over-year comparison was always going to look soft. June 2025 exports were unusually high, driven by a surge in shipments to China as tariffs between the two countries normalized last year.
USDA's Foreign Agricultural Service put June dairy export value at a record $973.5 million, up 16% from June 2025. Cheese Reporter first reported the figure. That number measures dollar value, not the milk solids equivalent volume USDEC tracks.
The two are not in conflict: value can set a record even as MSE volume declines, if prices per unit rise.
Cheese and Butterfat Post Record Volumes
June U.S. cheese exports rose 24% to 64,604 metric tons, a gain of 12,449 metric tons over June 2025. It was a new monthly high, topping the previous record of 64,186 metric tons set in April.
Mexico drove most of the growth, with cheese volume to the country up 48% to 24,195 metric tons.
U.S. cheese export volume has now set back-to-back monthly records, climbing from 52,155 metric tons in June 2025 to 64,186 metric tons in April 2026 and 64,604 metric tons in June 2026.
Other markets contributed too. Cheese exports to Central America rose 39%, adding 1,734 metric tons. South Korea grew 18%, adding 1,419 metric tons. Japan grew 25%, adding 1,277 metric tons.
The Middle East split sharply by country. Cheese shipments to Saudi Arabia rose 44%, adding 527 metric tons. Cheese exports to the rest of the Middle East fell 80%, a loss of 1,163 metric tons.
Regional logistics disruptions and shifting trade routes reshaped demand there.
Butterfat combines butter and anhydrous milkfat. Combined volume rose 48% to 12,982 metric tons, a gain of 4,214 metric tons.
But that volume was still the lowest since October 2025. Mexico led the growth, up 426% to add 1,578 metric tons. The Middle East and North Africa followed, up 108% to add 1,244 metric tons.
Saudi Arabia accounted for most of the regional gain, up 113% to add 971 metric tons. The United Arab Emirates grew a smaller 167%, adding 73 metric tons.
Milk Powder and Whey Volumes Decline
Milk powder exports fell across nearly every major market. Nonfat dry milk and skim milk powder volume dropped 19% from June 2025, a decline of 11,325 metric tons.
Higher U.S. prices weighed on competitiveness. The Philippines was the exception, with volume up 41% to add 2,673 metric tons. USDEC attributed the gain to previously negotiated contracts.
High-protein whey concentrate exports fell 11%, a decline of 774 metric tons.
Volume fell in every one of the category's five biggest destinations: Japan, China, Canada, Brazil, and India. USDEC cited insufficient exportable supply as the constraint.
China's Pork Slump Cuts Into Whey Demand
Low-protein whey told a different story. Volume grew 41% in April and 56% in May. It then fell 1% in June to 51,253 metric tons, as purchasing anomalies in China from the prior year faded.
Chinese pork prices had plateaued in late 2025. They began dropping again in February and hit a 16-year low in June, cutting demand for feed whey.
U.S. low-protein whey exports to China fell 26% from June 2025, a loss of 6,843 metric tons. Shipments to Canada, Japan, and Mexico helped offset the decline:
- Canada: up 133%, adding 2,984 metric tons
- Japan: up 164%, adding 1,741 metric tons
- Mexico: up 37%, adding 1,449 metric tons
