Global dairy trade up 2% on record demand for cheese

Global trade in dairy products demonstrates stable dynamics and continues to increase by approximately 2% annually. However, key market players and export flow directions are undergoing significant transformations, reports Agriland.

According to the results of 2025, the total volume of global trade in dairy products exceeded the mark of 100 million tons in terms of liquid milk. For comparison, in 2017 this figure was 91.1 million tons.

The EU currently maintains the status of the world’s largest exporter of dairy products, controlling about 27% of the market. At the same time, European suppliers are gradually losing their positions. They are actively squeezed by competitors from the United States of America, Argentina and Uruguay.

At the same time, a change in orientations is being recorded on the part of key importers. China is noticeably reducing purchases in foreign markets, as it is actively increasing its own domestic production.

This situation is forcing the world’s leading exporters to reformat logistics and significantly more actively develop alternative markets, in particular countries of Southeast Asia, the Middle East and Brazil.

Cheese and butter are creating new demand

The main driver of market growth in terms of product categories was cheese. Since 2017, the volume of international cheese trade has jumped by approximately 40%.

The butter segment also demonstrated a significant leap in 2025, where the main driver was the increase in export supplies from the US. At the same time, the market for powdered milk against this background remains quite restrained and does not show rapid dynamics.

Experts expect that the trend of annual two percent growth in global milk trade will continue in the future. However, the capabilities of producers in different regions will differ.

Due to strict regulatory rules and internal structural restrictions, it will be extremely difficult for European farmers to increase the volume of raw material production.

According to analysts, the United States and Argentina are in the most advantageous position, as they have the best prerequisites and resources to satisfy the growing global appetite for dairy products.

Tags: prices, Dairy, Cheese