U.S. dairy exports reached $9.5 billion last year, a figure second only to a previous record, with expectations of a 12% increase this year. Butter exports alone saw a 48% rise, and shipments to East Asia and the Middle East have more than doubled. U.S. Secretary of Agriculture Brooke Rollins highlighted these successes, attributing them to a renewed focus on trade and changes in domestic food programs. Rollins stated that trade has been a top priority, noting the achievement of 20 new trade deals and frameworks within just over a year, all designed to benefit American dairy producers.
Rollins shared her perspective during a fireside chat at the World Dairy Expo, emphasizing the current positive momentum for the U.S. dairy industry. She recalled that during her time in the first Donald Trump administration, the U.S. had an $8 billion agricultural trade surplus, with dairy playing a significant role. However, she noted a stark contrast four years later, when that surplus had reversed into a $51 billion agricultural trade deficit, underscoring the impact of varying administration priorities. The current administration has since secured numerous trade agreements, including those with Malaysia and Indonesia, which will eliminate or reduce tariffs on U.S. dairy products and recognize U.S. food safety standards.
New market opportunities for U.S. dairy have opened in Ecuador, Bangladesh, Cambodia, Taiwan, Argentina, and the European Union. The U.S. Department of Agriculture issued over 63,000 export certificates for dairy to approximately 130 countries in 2025, facilitating this international trade. Rollins pointed to agreements like the one with Indonesia, which will remove 99% of tariffs on American exports, including all dairy products. Costa Rica is also streamlining its dairy access, creating millions of dollars in potential opportunities for U.S. dairy products.
Beyond exports, Rollins addressed the impact of domestic food programs on the dairy industry. She noted that prior to the current administration, the largest purchases made with taxpayer dollars through the Supplemental Nutrition Assistance Program (SNAP) were for unhealthy items like junk food and soda. With 43 million Americans relying on food stamps, Rollins argued for a recalibration of benefit programs to prioritize American farmers and ranchers. The administration is now requiring retailers to stock 28 healthy items, up from 11, which is expected to increase purchases of dairy products like cheese, cottage cheese, yogurt, and milk.
The USDA also plays a crucial role in feeding students through school lunch and breakfast programs, providing 30 million lunches and 15 million breakfasts daily. The Whole Milk for Healthy Kids Act has reintroduced whole milk into school cafeterias after more than a decade, restoring a vital market for dairy farmers. The USDA is also providing funds to equip school kitchens with the necessary appliances to prepare healthier meals.
Dairy farmers are also benefiting from the Dairy Margin Coverage Program, with enrollment for 2027 having opened on October 5. More than 13,500 dairy farmers have utilized this program, receiving over $98 million in total payments nationwide. The program has been reauthorized through 2031 as part of the Working Families Tax Cuts Act. This legislation also makes an additional 1 million pounds of milk eligible for Tier 1 coverage with a 25% reduction in premium costs.
In terms of animal health, Rollins reported that the New World screwworm outbreak is under control, with only two active cases in Texas and one in New Mexico. She expressed confidence in quickly eradicating the pest, referencing historical efforts in the 1950s and 1960s where land-grant university researchers and USDA teams developed a sterile fly technique to combat the screwworm.
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