Exports and nutrition programs play a key role in dairy market balance
The United States dairy market is being shaped by changes in both global trade and domestic nutrition programs. One of the strongest drivers of demand is cheese exports, which continue to reach historic levels.
In February, the country recorded its highest single‑month cheese export volume. Competitive pricing helped US cheese attract buyers across international markets.
Mexico remains the largest buyer of US cheese, purchasing a record volume during the same month. Other regions such as Central America, Japan, and several Latin American countries also increased imports.
Lower US cheese prices compared to Europe and New Zealand continue to support export growth. These exports play an important role in preventing excess inventory and maintaining stable prices as milk production expands.
At home, the Supplemental Nutrition Assistance Program remains a major influence on dairy consumption. Although SNAP continues to serve millions of Americans, enrollment and overall spending have declined since pandemic benefit increases ended. This reduction has slightly lowered grocery buying power across households receiving assistance.
However, programs encouraging healthy choices are supporting fluid milk demand. Healthy Fluid Milk Incentives allow SNAP participants to stretch their food dollars when purchasing qualifying milk.
The program has expanded to many states and retail locations, showing strong growth in purchases of low‑fat and skim milk.
Several states are also testing food purchase restrictions combined with nutrition incentives. These policy changes favor nutrient‑dense foods, placing dairy products in a strong position. Together, export growth and domestic nutrition programs continue to shape a steady outlook for the US dairy sector.
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