The global dairy market faces turbulence from shifting trade policies, price swings, and supply chain bottlenecks. U.S. dairy exports had a strong 2024, and January 2025 set a record high in export value, but challenges persist. China’s economic slowdown and rising feed costs are pressuring dairy farmers globally. New environmental regulations, like Europe’s agricultural emissions rules, further complicate matters. Dairy exporters are turning to Southeast Asia and Latin America markets to compensate for softer Chinese demand.

BTG Takeaway

Flexibility is essential. Diversify your export markets and maintain adaptable supply chains to effectively navigate policy shifts and cost spikes.