Tuning out the trade uncertainty
- amy55735
- Apr 9
- 1 min read
Dairy markets started 2025 well positioned for a strong year, but the landscape is fraught with uncertainties that will raise the level of volatility as we move throughout the rest of the year. Chief among those uncertainties is trade. Tuning out some of the noise and focusing on risk management and long-run planning will be key to navigating markets.
A mix of export outcomes
Cheese has been celebrated as the rising star in the U.S. dairy export portfolio. Cheese exports have been building momentum and are steadily rising. Mexico, in particular, has emerged as a major market for U.S. cheese, with exports more there than doubling since 2020.
The U.S. is priced competitively with the other major cheesemaking regions of the world, including Europe and Oceania. Typically, when U.S. cheese is priced at a discount to the rest of the world, it provides a strong opportunity for sales and a chance to lock in multi-month export contracts. But with uncertainty swirling, there may be less appetite for long-term contracts.
By Ben Laine
April 8, 2025
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