US dairy exports fell by 5% in June (year-on-year) in milk solid equivalent terms, marking the first monthly US export decline since September 2025, the US Dairy Export Council reports. However, the decline was not particularly surprising given that June 2025 was abnormally high as tariff levels with China normalised, resulting in a surge of shipments to the country during June and July of last year, it says. 

While US cheese and butterfat shipments maintained record paces in June, decreases in milk powder, lactose and both high- and low-protein whey kept overall volume below the previous year.

That being said, June US cheese exports jumped 24%, up 12,449 metric tonnes (MT) over the previous year. Volume was 64,604 MT, topping the record of 64,186 MT set only two months earlier. Record volume to Mexico (+48% to 24,195 MT) led the growth, but US suppliers continued to expand business across geographies. Other major gainers included Central America (+39%, +1,734 MT), South Korea (+18%, +1,419 MT) and Japan (+25%, +1,277 MT).

Total US butterfat exports (butter plus anhydrous milkfat) rose 48% in June (+4,214 MT). Growth remains healthy, although June’s volume (12,982 MT) was the lowest since October 2025. US exports to Mexico (+426%, +1,578 MT) and the Middle East/North Africa (+108%, +1,244 MT) led the increase.

US butterfat continues to enter the Middle East primarily through Saudi Arabia (+113%, +971 MT in June YOY), with smaller but growing volumes destined for the United Arab Emirates (+167%, +73 MT). The war in the region seems to be having a greater impact on US cheese demand. While YOY US cheese shipments to Saudi Arabia grew 44% in June (+527 MT), cheese exports to the rest of the Middle East dropped by 80% (-1,163 MT).