Butter exports shift in our favor

In an article earlier this year, I asked the question whether the U.S. could export its way out of the glut of cream that had filled the market. I posited that while it would take a while for U.S. exports to start growing in earnest due to the high cost of entry for first-time exporters, the market signals were such that the U.S. would inevitably need to sell more butterfat overseas.

As evidenced by June and July’s export data, that flow of butterfat to international markets has arrived in earnest. June was the U.S.’ largest month of butter exports since 2014, only to be bested just one month later. The U.S. even managed to sell over 2,000 metric tons (MT) of butter to the European Union in July, overcoming a normally cost-prohibitive tariff of 50 cents per pound. The U.S. is also exporting greater volumes of anhydrous milkfat than ever before. In fact, combined exports of butter and anhydrous milkfat (AMF) have grown by more than any other dairy product so far this year on a component-adjusted basis.

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William Loux

Sept. 15, 2025

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