Strong U.S. supply, favorable U.S. pricing in key categories like butterfat and cheese, and the pause in U.S. tariff tensions with China and elsewhere energized U.S. dairy exports in June, boosting year-over-year (YOY) milk solids equivalent (MSE) volume by 15% for the month. The large increase put total U.S. dairy exports up 1.2% year to date (YTD). Half-year export value was up 15% to $4.72 billion.

The China difference
The big gain may seem somewhat of a surprise considering the unsettled U.S. tariff situation and the up-and-down U.S. dairy export performance through the first five months. But beyond first glance, the June numbers are largely in line with trends seen in May with a couple of key differences.

1) YOY low-protein whey grew 16% (+6,190 MT) in June as the U.S.-China tariff pause reinvigorated Chinese purchasing after YOY May volumes plummeted 70% (-11,873 MT). In contrast, YOY U.S. low-protein whey volume to China grew 33% (+6,462 MT) in June.

2) Lactose rebounded, also largely due to renewed Chinese demand. YOY total U.S. lactose exports jumped 14% (+5,442 MT) in June, with shipments to China rising 42% (+4,235 MT). In contrast, in May, YOY U.S. lactose shipments to China plunged 59% (-4,727 MT).

Consistently strong performers
Other significant June gains resembled May. The star of U.S. dairy this year remained cheese. After posting a single-month record in May, U.S. cheese blazed past that benchmark in June, shipping 52,191 MT, which was 641 MT more than May 2025 despite one fewer day. Compared to June 2024, volumes soared 34% (+13,347 MT), with widespread growth to almost all major markets. (For deeper dives on cheese, butterfat and low-protein whey, see below.)

Butterfat exports also continued their torrid pace. YOY butter volume doubled in June (+3,016 MT), while anhydrous milkfat (AMF) grew 34% (+598 MT). U.S. butter suppliers posted large gains to the Middle East/North Africa (+1,059 MT), Australia (+605 MT) and the Netherlands (+593 MT).

Few shortfalls
The only negative in June was nonfat dry milk/skim milk powder (NFDM/SMP). U.S. shipments fell to most major destinations except Mexico. Southeast Asia led the YOY decline (-9%, -1,796 MT), with additional shortfalls to the Caribbean (-22%, -1,192 MT) and Central America (-23%, -660 MT). While YOY Mexican imports jumped 14% for the month (+4,057 MT), the performance came against weaker previous-year purchasing.

Source: US Dairy Export Council