U.S. cheese exports shatter monthly records amid growth in nearly all major dairy product categories.

U.S. dairy suppliers kept their collective foot on the gas pedal in February, driving milk solids equivalent (MSE) export volume by 13% compared to the previous year. It was the ninth straight month of year-over-year (YOY) growth. Through the first two months of 2026, export volume increased 12% in MSE terms.

Similarly, YOY U.S. export value jumped 11% in February.

The month was marked by growth from almost all major products, with cheese and butterfat leading the way once again.

How many more ways can we laud U.S. cheese exports? After a record-shattering performance in 2025, they kicked off 2026 rising higher than ever. With only 28 days in the month, U.S. suppliers set not just a February record but an all-time high for any month. February volume grew 30% to 58,406 MT. If it were a 30-day month, we would have topped 60,000 MT for the first time. (For a deeper dive on cheese, see below.)

Butterfat also continues to impress. YOY February exports rose 77% (+6,646 MT). Butter was responsible for most of the gain, as volume nearly doubled (+4,871 MT) from the previous year, but YOY anhydrous milkfat (AMF) shipments contributed as well, rising 52% (+1,775 MT). The Middle East/North Africa (MENA) led butter growth, with shipments up seven-fold (+2,920 MT) for the month. The increase in AMF was split between half a dozen regions/countries, including Australia, the Caribbean, Southeast Asia and MENA.

YOY nonfat dry milk/skim milk powder (NFDM/SMP) exports rose 8% (+3,874 MT) in February. It was the third straight month of solid growth. NFDM/SMP volume was up 15% from December 2025-February 2026, compared to the same period the previous year, although it did benefit from low prior-year totals from December 2024 to February 2025. Despite the strong start to 2026, lagging U.S. NFDM/SMP production coupled with high U.S. prices will likely temper further gains. (See below for a deeper dive on NFDM/SMP.)

It has been an undeniably great start to the year, particularly for cheese and butterfat. But a couple factors bear watching: 1) February was the final month of problem-free shipping to the Middle East. U.S. export volume to the region soared 40% in MSE terms over the first two months, with strong gains in butterfat in particular. Supply chain challenges associated with the closure of the Strait of Hormuz hit full force in March, and we anticipate those challenges will begin to affect volumes when that data is released on May 5. 2) Looking a bit further forward this year, U.S. dairy exports in 2025 really began picking up in June. In other words, in a couple months, U.S. suppliers will have some more challenging prior-year numbers to surpass. 

For more detailed information, as well as interactive charts and data, visit USDEC's Data Hub.

SEA drives gain in U.S. milk powder exports
After an extended period of uninspired performance, U.S. exports of NFDM/SMP posted a meaningful gain for the third straight month in February. While Colombia and Central America supported the increase, none grew as much as Southeast Asia. Shipments to our traditional No. 2 NFDM/SMP market increased by 30% (+3,357 MT), compared to the same month last year.

In February, the U.S. shipped 14,393 MT of NFDM to the region, and while this marks a significant improvement over last year, volumes remain shy of historical levels. During each February between 2018 and 2024, U.S. milk powder exports to SEA were above 16,000 MT, and in 2021 and 2022, volumes neared 30,000 MT. Even with February’s gain, exports remain well short of that towering figure.

Furthermore, while the recent strength in NFDM/SMP exports is encouraging, ominous clouds are gathering on the horizon. Firstly, milk powder supplies remain tight. U.S. production of NFDM/SMP has slipped to the lowest volume in more than a decade as protein has been prioritized away from the dryer and toward the manufacture of other products like cheese, ultrafiltered milk, and yogurt. The prevailing spring flush may help to alleviate some of the tension in the short term, but scarcity remains a challenge.

Pricing is another factor that is likely to dampen U.S. NFDM/SMP exports into SEA in the coming months. As supply is short, the spot price of NFDM at the CME has rocketed to the high $1.90s—price levels not seen in more than a decade. Even as prices among other suppliers have also risen, U.S. milk powder remains over 25% more expensive than product coming from the EU and New Zealand.

Over the long term, we expect that these challenges will be alleviated by economic forces and stronger milk production growth in the U.S. relative to other suppliers. Eventually, these dynamics should ensure that the U.S. remains well positioned to provide the global market with milk powder. In the near term, however, U.S. exports of NFDM/SMP to SEA and other destinations are likely to come under pressure until milk flows back into the dryer.

Cheese continues to set new records
U.S. cheese exports continue to impress. After a record-setting year in 2025, U.S. cheese exports, seemingly unsatisfied to rest on their laurels, reached yet new heights in February. The 58,406 MT of cheese that the U.S. moved abroad during the month bested the prior record set last November by a sizeable 6% (+3,345 MT).

One of the hallmarks of the growth in cheese exports is that it has been buttressed by a wide variety of geographies. Latin America continues to drive a disproportionate share of the growth with February shipments to Mexico, Central America and the Caribbean, and South America up 38% (+5,702 MT), 36% (+2,544 MT), and 58% (+1,237 MT), respectively. But cheese exports were also up by 67% (+1,994 MT) to Japan and 35% (+959 MT) to Australia, along with more nominal gains across a breadth of countries.

In addition to geographic range, product variety has also helped to support cheese export growth with key categories all posting meaningful increases in February. Fresh cheese exports showed particularly robust growth for the month with shipments up 36% (+4,433 MT), driven especially by a near tripling of volumes into Mexico. Not to be left behind, shredded cheese varieties grew 26% year over year (+3,031 MT), while exports of other cheeses, most of which is specialty and gouda, jumped 22% (+3,079 MT).

Looking ahead, it seems likely that U.S. cheese exports will continue to surge this year and likely beyond. Milk production remains robust across the country, and with several major cheese production facilities still ramping up, output is expected to remain upbeat throughout 2026. Even as domestic consumption has shown an encouraging improvement early in the year, the U.S. is nevertheless expected to have sufficient cheese available to continue meeting rapidly expanding global demand.

As mentioned in previous export blogs, to account for misclassified product, USDEC continues to adjust U.S. WPC80+ export volume and value.

Learn more about global dairy markets

• Dairy exports start strong in 2026
• Big December lifts annual U.S. dairy export growth to +4%
• U.S. dairy exports poised for strong finish to 2025
• October U.S. dairy exports jump 7%

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The U.S. Dairy Export Council fosters collaborative industry partnerships with processors, trading companies and others to enhance global demand for U.S. dairy products and ingredients. USDEC is primarily supported by Dairy Management Inc. through the dairy farmer checkoff. How to republish this p