The global dairy market is facing turbulence due to shifting trade policies, fluctuating milk prices, and supply chain bottlenecks.

U.S. dairy exports saw a strong 2024, with cheese shipments rising 17%. However, 2025 has started with challenges, including weaker Chinese demand and rising feed costs impacting dairy farmers. Meanwhile, new EU regulations on agricultural emissions are influencing global supply chains.

Trends to Watch

• Milk prices: Recent price swings indicate an uncertain year ahead.
• Trade policy: Retaliatory tariffs from China could affect U.S. dairy shipments.
• Supply chain adjustments: Exporters are seeking new markets in Southeast Asia and Latin America.

Ingredient traders in the dairy sector must remain flexible in sourcing strategies. Diversification of export destinations and proactive inventory management will be key in navigating the market shifts.