American dairy farmers are celebrating a banner year for overseas sales, with export revenues climbing 15% to reach $9.63 billion in 2025, just shy of the all-time record set in 2022.
The success comes on the heels of a major trade breakthrough announced February 19th, when U.S. negotiators finalized a long-sought agreement with Indonesia that removes all tariffs on American dairy products. The deal represents decades of effort by the National Milk Producers Federation, working alongside the U.S. Dairy Export Council and the Consortium for Common Food Names.
Indonesia already ranks as the eighth-largest buyer of American dairy products, but as the world’s fourth most populous country, industry leaders see tremendous potential for future growth among U.S. producers.
This Indonesian agreement marks the ninth trade deal achieved by U.S. negotiators that opens new markets for American dairy exports. The recent string of successful agreements delivers several key benefits:
Complete tariff elimination on U.S. dairy products in most agreements, along with significant tariff reductions in others, helping American suppliers compete more effectively against rivals from Australia, New Zealand, and European Union countries. One notable example is the competitive advantage now enjoyed by extended shelf-life milk exports to Taiwan.
Prohibition of burdensome dairy facility registration requirements across all these markets. In Indonesia’s case, this removes a lengthy approval process that previously required over three years for processing plants to gain shipping authorization.
Protection for American exporters to use up to 40 commonly recognized cheese names including “parmesan.” This provision becomes increasingly critical as the European Union expands its free trade network, potentially restricting U.S. opportunities to market cheeses under widely accepted terms.
The National Milk Producers Federation credited Chief Agricultural Negotiator Julie Callahan as instrumental in securing these beneficial trade agreements. NMPF expressed gratitude to Callahan and the entire U.S. Trade Representative team for their substantial efforts in bringing these deals to fruition.
Despite recent Supreme Court decisions on tariffs creating additional trade policy uncertainty, the progress achieved demonstrates dairy’s bright prospects. Bilateral negotiations continue while the industry steadily develops new markets worldwide.
The year 2025 stands among the strongest on record for dairy exports. Export volumes measured in milk solids equivalent grew 4% compared to 2024, ranking second only to 2022 for total shipments. Revenue-wise, the $9.63 billion total fell just $30 million short of 2022’s record-setting $9.66 billion.
Cheese emerged as the standout performer, with shipments jumping 20% over the previous year’s already record-breaking totals. Expanded domestic processing capacity contributed to this growth, along with increasing international recognition of American product quality and taste. The record sales spanned globally, reducing risks from over-dependence on any single market. In 2025, thirty-nine different countries purchased more than 1,000 metric tons of U.S. cheese.
Both butterfat and high-protein whey products also experienced exceptional years, demonstrating the broad-based nature of export growth. While trade conflicts between the U.S. and various partners create uncertainty in some sectors, dairy exports remain largely unaffected. American dairy products maintain strong global competitiveness, with industry leaders building stable, collaborative relationships expected to endure and support long-term farmer prosperity.
The National Milk Producers Federation attributes much of its trade advancement to the NEXT program (NMPF Exports & Trade), launched during the second half of last year. NEXT works to create export opportunities for U.S. dairy producers by eliminating trade barriers and maintaining competitive pricing for domestic products in international markets.
During its initial six-month period, NEXT facilitated 142 million pounds of export volume, nearly matching the full-year 2024 totals under its predecessor, the Cooperatives Working Together program. The initiative continues testing innovative approaches to expand dairy’s market share through new strategies, including diversifying product offerings and providing targeted support in key markets where the U.S. faces tariff disadvantages or growth opportunities exist.
Enhanced trade access through upcoming bilateral agreements, a complete year of NEXT operations, and continued collaboration among dairy industry partners creates strong momentum for 2026 U.S. dairy exports. Industry leaders remain optimistic about future prospects despite ongoing discussions about tariffs and trade tensions, confident that skilled navigation can continue delivering impressive results for American dairy farmers.
