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The Future of U.S. Dairy Exports

The U.S. dairy industry continues to evolve and grow.  With an estimated $8.0 + billion in investment across the U.S. in the coming years it's a sign that dairy manufacturers are confident that dairy consumption will continue to grow both domestically and internationally.   Exports are becoming increasingly important and significant growth has been witnessed in the past few years.  For example, in 2024, the U.S. exported over 500,000 metric tons of cheese, blowing away cheese export numbers achieved from previous years. However, challenges continue to confront dairy exporters including more global trade deals benefitting U.S. competition and geopolitical factors that many times are not foreseeable like wars, tariffs, and sanctions.   While US manufacturers have maneuvered such challenges to date the combination of dairy production growth combined with ever a challenging export dynamic will require US dairy manufactures to revise, refine and add new sales strategies to stay ahead. 

The Export Challenge for U.S. Dairy 

Today the U.S. exports @ 16% of its dairy solids, while the percentage of dairy exports has grown in the past 2 decades; it is far from other regions of the world for example New Zealand, which exports 98% of its dairy production.  As the U.S. began to navigate the export marketplace many manufacturers needed to rely on international traders to handle exports. These traders have provided valuable support by managing credit risk and logistics; however, today many manufacturers are looking for ways to enhance and refine their export strategies through understanding of real time and more accurate pricing of dairy ingredients and the transparency of direct access to global buyers. 

Global trade agreements continue to shape market opportunities. For instance, recent free trade deals between Oceania and China has impacted some U.S. dairy products exported to that region. While the US has deep and strong relationships with countries like Mexico; who buys nearly one-third of U.S. dairy exports.  The challenges of both free trade agreements and most recently threat of tariff retaliations highlights the need for the U.S. dairy industry's ability to diversify into other markets as a crucial step for export success. 

Digital Marketplaces and Price Transparency 

Digital marketplaces are becoming increasingly useful alongside traditional sales methods. For products like whey and lactose, which have lower values but high volumes, online sales platforms can help manage price changes and improve sales efficiency. With global trade always shifting, understanding accurate and current global pricing and purchasing trends in demand are key to manage risk and profitability. 

Todd Wittlinger: Driving GDT’s Growth in the U.S. 

Leading Global Dairy Trade’s (GDT) expansion in the Americas is Todd Wittlinger, Vice President of Sales for the region. With over 20 years of experience in the dairy ingredients sector, Todd understands the unique challenges of the U.S. market and the evolving export landscape. 

Before joining GDT, Todd helped grow sales and build key industry relationships. Now, he connects U.S. dairy producers with global buyers, helping them compete internationally. His involvement in industry events reflects his commitment to fostering collaboration between sellers and buyers, ensuring U.S. dairy manufacturers have the resources and market access they need to succeed in this ever changing and evolving export marketplace. 

The Future of U.S. Dairy Exports 

For U.S. dairy exporters to thrive, the focus must shift from short-term transactions to building sustainable, long-term market strategies. This means: 

  • Strengthening Buyer Engagement: Establishing deeper connections with key buyers in key regions including North America, Mexico, Central and South America to create more stable, demand-driven opportunities. 
  • Optimizing Dairy Ingredient Exports: Leveraging the U.S.’s strong position in lactose, whey and and whey permeate to maximize export potential in existing key global markets. 
  • Expanding Direct Market Access: Reducing reliance on intermediaries by developing stronger relationships with international buyers and using digital platforms for greater pricing transparency and efficiency. 
  • Expanding Product Offerings: Defining areas of opportunity for growth based upon competition, price competitiveness and consumer demands.  Utilizing digital platforms for a variety of products that is buyer targeted and user friendly.    

By embracing these strategies, U.S. dairy manufactures can adapt and pivot easily to changing global trade dynamics and secure a stronger position in the international market.  

 

Post by Todd Wittlinger, VP-Sales Americas, GDT

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