The U.S. dairy product export market stumbled in February as cheese continued its strong growth performance, recording a 7% year-over-year improvement in milk solid equivalents (MSE), but nonfat dry milk/skim milk powder (NFDM/SMP) fell to its lowest export value since 2019, leading to a year-over-year 5% fall in total dairy product exports. Here’s Progressive Dairy’s 30,000-foot look at dairy-related export categories.

Producer milk checks will be lower once again in March based on a preview of Federal Milk Marketing Order (FMMO) milk class prices. Announced April 2, March 2025 FMMO Class II, Class III and Class IV milk prices were down once again from the month prior. Class I milk class prices also fell, as announced previously.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report March 31, which includes feed costs and milk prices used to calculate the February Dairy Margin Coverage (DMC) program margins and indemnity payments. February’s margin was $13.12 per hundredweight (cwt), the result of an improved market for corn coupled with a 50-cent drop in the all-milk price.

The start of the new year predicted favorable margins throughout 2025. But as the spring flush arrives and consumer spending softens some, while at the same time headwinds are expected for the export markets, new concerns have arisen for the remainder of the year.

In the news affecting dairy producers' bottom lines the third week of March 2025: Class I base milk price falls again for April, the USDA begins disbursement of economic assistance to farmers, Hilmar opens new Kansas facility, and more scholarships are available.

The U.S. dairy export market noted gains in most major product categories, a trend that was apparent as 2024 came to a close. Cheese exports saw year-over-year volume gains for the 13th consecutive month and low-protein whey shipments rose 6%, contributing to an impressive 20% rise in year-over-year U.S. export value. Yet, there are plenty of uncertainties that will shape exports in 2025. Here’s Progressive Dairy’s 30,000-foot look at dairy-related export categories.