The dairy sector in the Americas is navigating a new equilibrium after a volatile stretch. U.S. milk prices rebounded through late 2024 as production tightened and demand stayed firm. By year’s end, farmers saw improved margins and even a rare uptick in domestic milk consumption – U.S. fluid milk sales rose 0.6% in 2024, the first annual gain in 15 years. Robust demand at home and abroad has buoyed the industry: U.S. dairy exports in 2024 reached $8.2 billion (near a record high), with cheese exports up 17% to over 1.1 billion pounds. This export strength helped offset headwinds like weaker Chinese import demand.

On the supply side, milk output dipped slightly in 2024 but is expected to inch up by ~0.4% in 2025 as farmers respond to higher prices. Early 2025 has brought some challenges – cheese prices briefly slumped amid rising feed costs, squeezing producer margins – yet the overall outlook is stable. With supply and demand more in balance, the Americas dairy market appears steadier, albeit still sensitive to feed costs and global market shifts.