Export data for February 2025 was recently released by the US Dairy Export Council (USDEC), showing a significant drop for categories like nonfat dried milk (NFDM) and whey proteins. NFDM export sales declined by 26% in February, falling to the lowest level since 2019. This significant drop in NFDM exports is the primary reason for the overall 5% shrinkage in US dairy exports for the month of February.
The most notable drop in export locations was to Southeast Asia, which decreased imports by over 12,000 metric tons. As turbulence persists around global tariffs, industry experts expect to see continued volatility in the dairy powder exports, where major importing countries have, or are considering, retaliatory tariffs on US products.
Total whey exports also saw a dip in exports of 5% for the month of February, accounting for an array of whey products. WPC (under 80%) exports took the largest hit of 26% on the month. High protein whey powders decreased as well over the month, with a loss of 17%. The 53% decrease in demand from China was the main culprit for the total decline.
China is a key importer of a variety of US dairy products. With trade tensions remaining high between the two countries, market players have expressed concerns for the whey market export availability. Currently, China revealed retaliatory tariffs on US products without exemptions, fueling uncertainty in the industry.
