Author: Rachel Ravencraft

February NEXT-Assisted Export Sales Surpass 54 Million Pounds

Posted on by Rachel Ravencraft

NEXT member cooperatives secured 246 contracts in February, adding 54.3 million pounds of product in NEXT-assisted sales in 2026. These products will go to customers in Asia, Europe, North America, Oceania, Middle East-North Africa, Eurasia, South America, Central America, the Caribbean and Sub-Saharan Africa and will be shipped from February through July. 

NEXT is a critical tool for participating U.S. dairy cooperatives to grow export sales, which have become increasingly important for dairy farmers and their cooperatives nationwide. Whether or not a cooperative is actively engaged in exporting, moving products into international markets is essential to generate dairy demand. For more information on the NEXT Program, contact the team at NEXT@nmpf.org. 

The referenced amounts of dairy products reflect current contracts for delivery, not completed export volumes. NEXT will pay export assistance to bidders only when export and delivery of product is verified by submission of required documentation.

NMPF Advocates for a Stronger, Better USMCA

Posted on by Rachel Ravencraft

NMPF significantly escalated its public engagement ahead of this summer’s U.S.-Mexico-Canada Agreement Review, with an NMPF cooperative farmer testifying before Congress and the head of its trade team speaking on behalf of a new coalition NMPF launched to help strengthen the agreement.

Ted Vander Schaaf, an Idaho dairy farmer and board member of both the Northwest Dairy Association/Darigold and the Idaho Dairymen’s Association, an NMPF associate member, testified at a Feb. 12 Senate Finance Committee hearing on the importance of USMCA for the dairy community and the targeted improvements that must be addressed.

Vander Schaaf emphasized that USMCA is vital for providing open and predictable market access, particularly to Mexico, while also highlighting areas where the agreement has fallen short. He emphasized the glaring shortcoming of Canada’s continued manipulation of its dairy tariff-rate quotas and its circumvention of USMCA dairy protein export disciplines to shortchange U.S. dairy exporters. He also noted Mexico’s delay in fully implementing its commitments to protect common cheese names and explained its importance to dairy producers and processors.

NMPF also played a leading role in the Feb. 5 launch of the Agricultural Coalition for USMCA, an industry-wide effort to support renewing and strengthening the agreement. The coalition will work with congress and the Administration to ensure USMCA’s shortcomings are rectified before renewal.

“USMCA is an extremely strong agreement, but it’s not perfect,” said NMPF Executive Vice President Shawna Morris at the coalition’s launch press conference. “The USMCA review offers an unmissable opportunity to make targeted enhancements so the agreement can live up to its full intended potential.”

USDA Dairy Purchases Match NMPF Request

Posted on by Rachel Ravencraft

USDA took steps to boost low milk prices and expand dairy consumption through $148 million in Section 32 purchases announced Feb. 19, pledging to buy a balanced, effectively targeted mix of dairy products, including the first major butter purchases in five years, in keeping with NMPF efforts that dated to November.

“Dairy farmers have shared in the struggles faced throughout the agricultural economy, and these purchases will provide important relief to producers who will benefit from the additional demand, helping them provide nutritious dairy products to Americans and the world,” NMPF President and CEO Gregg Doud said in a statement.

The USDA purchase plan includes:

  • $75 million of butter;
  • $32.5 million in cheddar cheese;
  • $20.5 million in fresh fluid milk;
  • $10 million of Swiss cheese; and
  • $10 million in Ultra-High Temperature (shelf-stable) milk.

The purchases match the amount requested by NMPF in a letter sent to USDA last November, which was followed by extensive conversations and further official communication with USDA and compare favorably with other recent USDA purchases intended to boost the farm economy, which include $80 million for specialty crops and $100 million for seafood.

USDA Section 32 purchases, authorized by the Agricultural Adjustment Act of 1935, allow USDA to buy surplus, domestically produced agricultural products to stabilize farm products and provide food to federal nutrition assistance programs.

Under the program, USDA’s Agricultural Marketing Service notifies industry and stakeholders of new opportunities by issuing Purchase Program Announcements throughout the year. Now that the announcement has been made, USDA is inviting offers from approved USDA vendors and awarding purchase contracts. For more information, visit USDA here.

U.S. dairy exports hit second all-time high

Posted on by Rachel Ravencraft

By Stephen Cain, Vice President, Economic Policy and Market Analysis

U.S. dairy exports finished the year at near-record volumes — up 4% year-over-year (YOY) on a milk solids equivalent (MSE). Last year’s volume was the second highest ever at 2.3 million metric tons (MT) MSE and valued at $9.6 billion. While the year started off slowly with U.S. dairy exports down 1.6% through the first five months, shipments exploded in the back half of the year, up 8% YOY between June and December. The tremendous growth in U.S. exports this past year can be largely attributed to two key drivers: rebounding global demand for dairy products, and U.S. price competitiveness.

Global demand for dairy products over the past few years has been somewhat challenged. From 2022 to 2024, global dairy trade was effectively flat (+0.4%). China, which had been driving growth, pulled back from the market at the same time that many countries around the world struggled with inflation. Fast forward to 2025 (specifically the back half of the year), and we see global trade rebounding significantly — up 3% for the year and up nearly 5% in just the last six months of 2025. What is particularly encouraging about this demand improvement is that it was driven by many countries and not only one or two key importers. Thankfully, global inflation continues to ease and economies around the world are in better shape, which is supporting global dairy trade.

Growing demand wasn’t the only factor boosting U.S. exports. A prolonged period of price competitiveness made the U.S. the most attractive supplier for many dairy products, particularly for cheese and butter. Over the past year, on a spot basis, U.S. cheese prices sat at a 24% (53 cents per pound) discount to other suppliers on average, with butter at a 33% ($1.05 per pound) discount. While that price advantage helped the U.S. grow export sales and capture market share from competitors, U.S. dairy farms are challenged when prices get this low. Positively, on the profitability front, the gap has closed considerably in recent weeks. During that time, U.S. market share of global butter trade grew significantly from 5% in 2024 to 12% in 2025. Similarly on cheese, U.S. market share has risen from 18% to 20% in 2025. Overall, the U.S. grew dairy exports more than any other supplier and surged to become the third-largest agricultural commodity exported.

As a result, U.S. exports improved significantly (+4%), with cheese (+20%) and butterfat (+167%) driving overall volume growth. Conversely, total U.S. nonfat dry milk and skim milk powder exports were down 9% last year. The key driver for the decline is the U.S. simply had very little product available for export, driven by lower production and reallocation of skim solids. As a result, exports slipped to the historically three largest markets for the U.S. — Mexico -1%; Southeast Asia -8%; China -5%, leaving space for growth in traditionally smaller markets. Outside of these top regions, U.S. exports grew substantially — up 17% in total with growth across most products.

Altogether, the U.S. had a tremendous year for exports last year driven by both growing global demand and a favorable price advantage. While the U.S. won’t hold this large of a price advantage forever, the expansion in market share and higher sales to new markets seen in 2025 has helped U.S. suppliers gain a foothold that can serve as a foundation for future growth, even when global prices move closer to alignment.

 

This column originally appeared in Hoard’s Dairyman Intel on March 2, 2026.

Trade Progress Poised to Reel in Revenue

Posted on by Rachel Ravencraft

In the turbulent tides of overseas commerce over the past year, U.S. negotiators landed a trophy bass in February: a trade agreement with Indonesia that we’ve been trying to hook for decades. It’s a big fish for dairy.

Following years of advocacy by NMPF and our partners at the U.S. Dairy Export Council and the Consortium for Common Food Names, the deal announced Feb. 19 will eliminate tariffs on all U.S. dairy exports, ease regulatory snarls and protect common cheese names like “parmesan.” Indonesia is already the eighth-biggest market for our dairy products — but it’s the world’s fourth most-populous nation, giving its growth potential for U.S. producers nowhere to go but up.

The Indonesia deal was the ninth trade deal secured to date by U.S. negotiators that includes new market access for U.S. dairy products. It’s a good one, but far from the only gain. Some other highlights of these pending agreements include:

  • Elimination of 100% of tariffs on U.S. dairy products in most deals and notable tariff cuts in others, helping to provide competitive parity to suppliers from Oceania or the EU. A great example of this is the level playing field we now have for extended shelf-life milk into Taiwan.
  • Bans on the introduction of dairy facility listing requirements in all these markets; in Indonesia this wipes away a process that could take over three years for a processing plant to navigate before it gained approval to ship.
  • Commitments in each deal to protect U.S. exporters’ use of up to 40 common cheese names like “parmesan,” a result that’s particularly important as the European Union’s Free Trade Agreement network expands, threatening to limit U.S. growth opportunities to market cheeses with widely recognized terms.

This successful expedition would not have been possible without a world-class captain. Chief Agricultural Negotiator Julie Callahan was instrumental in securing these trade deals that will bring real results back to U.S. farmers. NMPF thanks her and the USTR team, all of whom we have had the honor of working with closely, for the substantial efforts made to bring these agreements home.

And even though a recent Supreme Court ruling on tariffs added even more uncertainty to trade policy, the progress made so far also underscores an important fact about dairy’s future: Trade continues to grow, and the foundations for future growth are only getting stronger, as bilateral negotiations continue and the dairy industry continues patiently building markets.

2025 was one of the strongest trade years ever for dairy products. Volume growth for U.S. dairy exports rose 4% over 2024 as measured in milk solids equivalent, ending up second only to 2022 in all-time shipments. Measured in value, U.S. dairy exports rose 15% over 2024 to $9.63 billion, just short of the 2022 record of $9.66 billion.

The star performer of the year? Cheese. Shipments in 2025 rose 20% over the previous year, which also set a record. New domestic processing capacity helped, as did growing familiarity with the quality and taste of American-made products. Just as impressive, the record sales were spread across the globe, lessening the risk that over-reliance on any single market could create risk in the future: In 2025, 39 countries bought more than 1,000 metric tons of U.S. cheese.

Butterfat and high-protein whey also saw banner years, showing the broad-based nature of sales growth. While conflicts between the U.S. and trading partners are throwing exports into doubt in some areas, in dairy, we’re not seeing widespread effects. In fact, it’s the opposite: U. S. dairy is highly competitive in the global marketplace, and we’re building stable, collaborative, relationships that we are confident will stand the test of time and contribute to long-term prosperity for U.S. dairy farmers.

We have a lot of folks to be thankful for on this journey, from our USDEC and CCFN colleagues to the cooperatives who provide high quality products and invaluable expertise. But looking ahead, we need to capitalize. At NMPF, a big part of our trade support comes from our NEXT (NMPF Exports & Trade) program, launched in the second half of last year.

NEXT helps create export opportunities for U.S. dairy producers in international markets, by overcoming trade barriers and keeping domestic dairy products competitively priced overseas. The 142 million pounds of export volume it assisted in its half-year nearly matched the full-year 2024 volumes under the prior Cooperatives Working Together program, which NEXT succeeded.

The program continues to test innovative ways to grow dairy’s market share through new initiatives, including expanding its product mix and providing targeted, additional support beyond primary assistance in key markets — places where the U.S. is at a tariff disadvantage or the U.S. has the ability to gain market share. Cooperatives interested in joining NEXT, or wanting to know more about the program, should contact next@nmpf.org.

Improved trade access coming soon in numerous markets through bilateral agreements, a full year of NEXT, and the continued collaboration of dairy partners builds great momentum for 2026 in U.S. dairy shipments overseas.

Keep that in mind as you read about tariffs, tariff limitations, tariff alternatives, and trade tensions. Though the waters may not be calm, a skillful angler can still net an impressive haul. And thus far, we in dairy have been casting very effectively, and reeling in a brighter future for U.S. dairy products.

Gregg Doud

President & CEO, NMPF

 

Real Milk Extends its Comeback

Posted on by Rachel Ravencraft

In the long run, reality wins.

In the decades-old saga of Real Milk vs. The Plant-based Imposters, Team Real had another good year in 2025. While retail sales of fluid milk stayed steady, sales of imitators made from almonds, oats and other items fell 6 percent to 358.4 million gallons last year, according to Circana data of retail sales. Since its peak in 2021, plant-based sales have declined by nearly one-fifth; last year’s drop of 6 percent was the steepest of all four.

As a result, for the fourth straight year, good-old-fashioned fluid milk’s market share rose compared to plant-based beverages, holding 90.7 percent of the combined dairy-and-alternative-beverage market in 2025. That’s the fourth straight annual increase in milk’s market share, and it’s up from 89.4 percent in 2021.

Slowly, but surely, consumers are choosing the better value — in nutrition, in price, and in trustworthiness. In a rational world, real milk and plant-based beverages wouldn’t even be in the same category — their nutritional profiles are radically different, and their ingredients bear no similarity. Decades of plant-based marketing as dairy alternatives have made their mark; but despite that, dairy remains dominant. That’s a tribute to milk’s irreplaceable nutritional package — and to consumers who dig past the hype and make the choices that best fit their nutritional needs.

Not that plant-based beverages are ever going away — far from it. Going back to the data: Even though beverages made from almonds, which is 63 percent of the plant-based market, fell by 8.6 percent last year, and soy fell 8.3 percent, oat-based beverages rose 1.8 percent, as it’s become a solid-though-distant second place to almonds.

People have their reasons to choose ultra-processed beverages of inferior nutritional value. But the decline of plant-based beverages fits within several trends of the 2020s, from the embrace of real food to renewed appreciation of dairy’s nutritional benefits, especially at fuller-fat levels, to consumers who are more critical of what they consume.

Confusion remains in the marketplace over the inferior nutrition of plant-based versus true dairy beverages; that’s shown by surveys and studies. Enforcing federal standards of identity that define milk as an animal product and reserving dairy terms on labels only for true dairy beverages would further these positive marketplace trends. Nutrition science has spoken, and consumer behavior is changing too. Slowly but surely, milk’s integrity is carrying the day, and real dairy is winning. Often, it just takes time.

DMC Signup Ends Feb. 26; NMPF Urges Farmers to Lock in Benefits

Posted on by Rachel Ravencraft

Signup for the Dairy Margin Coverage Program ends Thursday. NMPF is urging farmers to apply for the program as part of a risk management strategy that helps dairy producers weather economic swings.

“Dairy Margin Coverage is an essential part of a dairy farmer’s business resilience,” Gregg Doud, president & CEO of NMPF, said. “Smaller farmers gain important protection against lower margins, while larger farmers gain catastrophic coverage at little or even no cost.

“This signup is the first since the program was reauthorized last year, and it includes coverage improvements as well as a 25% premium reduction for a long-term commitment,” he continued. “Farmers can benefit greatly from participating in a program that has helped thousands of dairies.”

DMC changes made as part of the One Big Beautiful Bill Act passed last year include:

  • An update to production history based on the highest annual milk production level from any one of the 2021, 2022, or 2023 calendar years.
  • USDA clarification on how new operations (i.e., those that began marketing milk after Jan. 1, 2023) will be able to establish production history.
  • Eligibility for operations to enroll their first 6 million pounds of production at the Tier 1 level, up from 5 million pounds, with all additional production covered under Tier 2. Premium rate fees under Tiers 1 and 2 are unchanged.
  • An opportunity for operations to make a one-time election of coverage level and coverage percentage, “locking in” those elections for a six-year period from January 2026-December 2031. Those who elect this option must participate in DMC at the same coverage levels for the six-year period and will receive a 25% premium discount for doing so.

Farmers interested in participating in DMC can complete their paperwork in consultation with their local Farm Service Agency Office. Cooperatives also stand ready to assist.

NMPF Lauds USDA Dairy Purchase Announcement

Posted on by Rachel Ravencraft

$148 million in Section 32 funds matches NMPF November request

 

Dairy farmers thanked USDA and Sec. Brooke Rollins for taking steps to boost low milk prices and expand dairy consumption through significant Section 32 purchases of a balanced, effectively targeted mix of dairy products, including the first major butter purchases in five years.

“Dairy farmers have shared in the struggles faced throughout the agricultural economy, and these purchases will provide important relief to producers who will benefit from the additional demand, helping them provide nutritious dairy products to Americans and the world,” NMPF President & CEO Gregg Doud said.

Specifically, USDA is purchasing:

  • $75 million of butter;
  • $32.5 million in cheddar cheese;
  • $20.5 million in fresh fluid milk;
  • $10 million of Swiss cheese; and
  • $10 million in Ultra-High Temperature (shelf-stable) milk.

The $148 million in purchases is part of $263 million purchase announcement for numerous agricultural commodities and matches the amount requested by NMPF in a letter sent to USDA last November, which was followed by extensive conversations and further official communication with USDA. Other recent USDA purchases intended to boost the farm economy have included $80 million for specialty crops and $100 million for seafood.

USDA Section 32 purchases, authorized by the Agricultural Adjustment Act of 1935, allow USDA to buy surplus, domestically produced agricultural products to stabilize farm products and provide food to federal nutrition assistance programs.

Under the program, USDA’s Agricultural Marketing Service notifies industry and stakeholders of new opportunities by issuing Purchase Program Announcements throughout the year. Following today’s announcement, USDA will invite offers from approved USDA vendors and award purchase contracts.

Smart Policy Can Help Mitigate Dairy Pain, NMPF Economists Say

Posted on by Rachel Ravencraft

Low milk prices are a grim reality for dairy producers in the near term, with growing trade and federal action serving as remedies to get farmers through tough times, NMPF economists said in a Dairy Defined Podcast.

“There really is no quick fix to get back into balance,” said Will Loux, Senior Vice President for Global Economic Affairs and the head of the joint economics team for NMPF and the U.S. Dairy Export Council. “I do think there are real ways that, from the Whole Milk to Healthy Kids Act, to the National Milk Exports and Trade program, to opportunities to beef up Dairy Revenue Protection, to making sure folks are utilizing that program or Dairy Margin Coverage. There are ways to help, I think, mitigate the pain that we see dairy farmers feeling today from a policy perspective.”

Loux is joined in the podcast by Stephen Cain, Vice President for Economic Policy and Market Analysis.

To hear more Dairy Defined podcasts, you can find and subscribe to the podcast on Apple Podcasts, Spotify and Amazon Music under the podcast name “Dairy Defined.”

What’s next for dairy in Washington?

Posted on by Rachel Ravencraft

By Maria Brockamp, Senior Manager, Government Relations

The dairy industry experienced an unprecedented start to 2026 in Washington, D.C.

Coming hot out of the gate was dairy’s prominence in the 2025-2030 Dietary Guidelines for Americans (DGAs). Released every five years, the DGAs outline what is included in a healthy diet and inform the nutrition standards for federal nutrition programs including school meals. Whole milk, cheese, yogurt, and butter icons adorned the new inverted food pyramid encouraging Americans to “eat real food.”

Not only was full-fat dairy lauded in the DGAs, but whole milk specifically had its own moment shortly after the new year when President Trump signed the Whole Milk for Healthy Kids Act into law, allowing schools to include whole and 2% milk on their lunch trays.

Finally, enrollment for the Dairy Margin Coverage (DMC) program opened in January, giving producers until Feb. 26 to enroll for the coming year. This year’s DMC includes provisions that the National Milk Producers Federation advocated to be included in the One Big Beautiful Bill Act last summer, including a production history update and a six-year discounted coverage option.

With so many wins so early in 2026, it might seem like a good time for National Milk Producers Federation (NMPF) to simply claim victory and celebrate for the rest of the year. But there is still much work to be done, and that work takes time. The dairy wins we’ve had so far in 2026 were years in the making — work on the 2025 DGAs began in 2021, the Whole Milk for Healthy Kids Act was first introduced in 2019, and advocacy for DMC updates began in 2023 — and NMPF is eager to carry the momentum dairy has right now in Washington.

First, fostering the early 2026 wins to fruition remains a top priority this year. A swift and all-encompassing rulemaking to implement the Whole Milk for Healthy Kids law is crucial to ensuring that full and reduced fat milk offerings return to school menus for the 2026-27 school year. A continued science-based, yet practical approach to implementing the DGAs into the school meal program is crucial to ensuring that all students are benefiting from the 13 essential nutrients that dairy provides. Widespread information outlining the updates and the signup deadline for the DMC program and continued advocacy for improvements to complementary risk management programs, like Dairy Revenue Protection, are crucial for helping dairy farmers navigate turbulent times.

It’s no secret that workforce challenges continue to plague the dairy industry. NMPF advocates for the stabilization of the current, highly skilled workforce and the opportunity for dairy farmers to access a future workforce through a viable year-round guestworker program. With the border secure, there is no time better than the present to tackle these longstanding workforce issues, and NMPF is securing a seat at the table so that dairy farmers’ needs are heard.

Finally, supplementing the funding included in the One Big Beautiful Bill Act with updated policy provisions in a full five-year farm bill is essential to the success of dairy farms. Uncertain times call for comprehensive bipartisan action to spark certainty for those that feed the world. That action is a long overdue farm bill.

Dairy farmers are facing some big hurdles — low fat prices, ongoing workforce challenges, and intense animal disease protocols, just to name a few — but rest assured, there are dairy voices in Washington addressing these issues and more. The priorities outlined here are the tip of the iceberg for how NMPF plans to advocate for dairy farmers and their cooperatives this year.

 

This column originally appeared in Hoard’s Dairyman Intel on Feb. 16, 2026.

NMPF Statement on House Farm Bill Proposal

Posted on by Rachel Ravencraft

From NMPF President & CEO Gregg Doud:

“NMPF thanks Chairman Thompson, House Agriculture Committee members, and their staffs for working to put together a farm bill that will bring greater certainty to producers at a difficult time. Dairy farmers look forward to working with House members and senators as this legislation makes its way through Congress, and we pledge our support in crafting the best legislation possible.”

 

Some key dairy highlights of the bill include:

  • Authorizing long-term the dairy product processing cost surveys initially authorized and funded at $9 million in the One Big Beautiful Bill Act (OBBBA);
  • Extending the Dairy Forward Pricing Program, the Dairy Indemnity Program, and the Dairy Promotion and Research Program;
  • Supporting voluntary, producer-led conservation programs, such as the Environmental Quality Incentives Program (EQIP), with a continued designation of conservation funds for livestock producers and a directive for states to prioritize methane-reducing practices;
  • Establishing a long-term policy directive for the U.S. government to proactively negotiate protections for common cheese names like “parmesan” and “feta,” as championed by NMPF;
  • Moving Food for Peace program administration to USDA and continuing $200 million in annual funding for Ready-to-Use Therapeutic Foods that incorporate milk powder to treat chronic malnutrition globally;
  • Reassigning export promotion funding initially included in the OBBBA into existing Farm Bill programs like the Market Access Program to make it easier to use by cooperators such as the U.S. Dairy Export Council;
  • Expanding economic opportunities for farmers to partner with local food distribution organizations to provide fresh, locally grown foods, including milk and other dairy products, to eligible community institutions;
  • Including full-fat fluid milk and hard cheeses in the Dairy Nutrition Incentive Program; and
  • Reauthorizing the Farm and Ranch Stress Assistance Network