Dairy Trade: Good Times and Uneasy Warnings
Global dairy trade is enjoying bullish momentum thanks to strong demand, rising commodity prices, and shifting supply constraints. Export volumes of U.S. cheese climbed 16% year-on-year, while exports of anhydrous milk fat surged 448% in early 2025. However, underneath the surface of these gains lie fragilities—volatile input costs, stretched supply chains, and concentration of processing capacity around fewer hubs. At the same time, structural changes are spreading across the sector. Milk fat and protein yields in the U.S. crept to record levels--average butterfat reached 4.23% and protein 3.29% in 2024. But many dairy producers remain cautious: 16% of respondents in a survey cited inflation and material costs as their top expansion barrier. For Indian dairy stakeholders, the message is dual. On one hand: the current global appetite—and tight supply dynamics—create a window of export opportunity for SMP, whey and specialty dairy products. On the other: the risks mirror those seen abroad—namely rising input costs, labour pressures and regulatory complexity. To capitalise, Indian co-ops and processors must invest in efficiency (fat/protein optimisation), diversify revenue streams (value-added, beef-on-dairy, export niches) and build resilient supply chains. In short: good times are here but unless managed smartly, they could be followed by uneasy warnings. Source : DAirynews7x7 Oct 29th 2025 Read full article hereIndustry Insight