Top Stories
Stakeholders laud new trade deals that benefit U.S. dairy |
February 13, 2026 |
ARLINGTON, Va. — Dairy industry groups are celebrating the signing of trade agreements that benefit the U.S. dairy industry. The U.S. Dairy Export Council (USDEC), the National Milk Producers Federation (NMPF) and the Consortium for Common Food Names (CCFN) commended the signing late yesterday of a landmark trade agreement between the United States and Taiwan that will eliminate tariffs on all U.S. dairy products and preempt nontariff barriers that could otherwise limit the full potential of bilateral dairy trade.
Taiwan is the third-largest fluid milk destination for U.S. exports, and this agreement represents a transformative step forward for the growing market. By securing comprehensive tariff reductions for U.S. dairy products and incorporating meaningful commitments to ensure nontariff measures do not derail trade, the deal positions U.S. dairy suppliers to compete on a level playing field and expand their presence in one of Asia’s most dynamic food markets.
“Taiwan is a trusted partner and a high-value market for U.S. dairy,” says Krysta Harden, president and CEO of USDEC. “This agreement improves our competitiveness compared to other suppliers and provides assurances that nontariff barriers will not hinder the expansion of U.S. dairy exports.”
The agreement builds on strong industry-to-industry collaboration between the United States and Taiwan. Last year, NMPF and USDEC representatives traveled to the market to advocate for dairy’s prioritization in the negotiations and deepen engagement with local stakeholders. While there, USDEC and NMPF signed a Memorandum of Understanding (MOU) with the Dairy Association of Taiwan to strengthen market development and information exchange efforts.
“The agreement with Taiwan builds on the incredible momentum we’ve seen from the administration in securing new trade agreements around the world,” says Gregg Doud, president and CEO of NMPF. “Each deal to reduce barriers and expand market access strengthens American dairy farms and the communities they support.”
“Taiwan is an important market for the United States, and the commitments to protect common names included in this agreement preempt third countries like the European Union from abusing intellectual property tools to monopolize generic terms and take away U.S. export opportunities,” adds Jaime Castaneda, executive director of CCFN. “We cannot thank Ambassador Greer, Ambassador Callahan and the entire negotiating team enough for prioritizing this issue and ensuring our exporters can continue using the terms known by consumers around the world.”
Stakeholders also praised last week’s signing of a U.S.-Argentina Agreement on Reciprocal Trade and Investment that includes tariff and nontariff barrier concessions for U.S. dairy exports.
U.S. Trade Representative (USTR) Jamieson Greer notes that the U.S.-Argentina Agreement lowers long-standing trade barriers and provides significant market access for American exporters, ranging from motor vehicles to a wide array of agricultural products.
“The deepening partnership between President Trump and President Milei serves as a model of how countries in the Americas, from Alaska to Tierra del Fuego, can advance our shared ambitions and safeguard our economic and national security,” Greer says.
Argentina commits in the trade deal to eliminate tariffs that currently range up to 28% on select dairy products, including milk powders, dairy proteins, lactose and other dairy ingredients. The agreement also establishes a 1,000-metric-ton quota for certain U.S. cheeses. In addition to tariff reductions, Argentina agrees to prevent several nontariff barriers, including refraining from imposing processing facility registration requirements on U.S. dairy exports and providing explicit protections for 39 common cheese names like “parmesan.”
“The commitments secured in the U.S.-Argentina reciprocal trade deal bring new, real opportunities for dairy exports to South America,” Harden says. “USDEC appreciates USTR’s hard work in securing agreements that lower tariffs and meaningfully address nontariff barriers, particularly those to protect common cheese names. We look forward to building our market presence in Argentina as the agreement is implemented.”
Trade deals like this one bring dairy farmers promise for the future, adds Doud.
“Dairy farms operate 365 days a year, and the U.S. negotiating team is keeping pace to secure new market access. NMPF will continue to work with the administration as all the reciprocal trade agreements are translated into real results on the ground for our farmers,” Doud says.
Castaneda notes that Argentina’s commitment to protect 39 common cheese names and 10 generic meat terms could not have come at a more important time.
“As the European Union is advancing toward implementation of its trade agreement with the Mercosur
bloc of countries, our ability to use common names is increasingly at risk. We cannot thank Ambassador Greer and the USTR negotiating team enough for the foresight and leadership in protecting U.S. exporters’ rights,” he says.
In addition to the agreement with Argentina, earlier this week the United States and Bangladesh announced an Agreement on Reciprocal Trade that will provide U.S. and Bangladeshi exporters unprecedented access to each other’s respective markets.
Among the key terms, Bangladesh has committed to provide significant preferential market access for U.S. industrial and agricultural goods, including dairy products. The joint statement also says Bangladesh has committed to groundbreaking provisions on geographical indications that will preserve U.S. market access, particularly for U.S. cheese and meat producers who rely on the use of common names.
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Kraft Heinz halts plans to split, reports 2025 financial results |
February 13, 2026 |
PITTSBURGH — The Kraft Heinz Co. this week reported its financial results for the fourth quarter and full year 2025, while also announcing a pause in its plans to split into two separate companies.
In September 2025, Kraft Heinz announced that its board of directors had unanimously approved a plan to separate the company into two independent, publicly trade companies: one that would include brands such as Heinz, Philadelphia and Kraft Mac & Cheese, and the other with brands such as Oscar Mayer, Kraft Singles and Lunchables.
Steve Cahilane, who became Kraft Heinz CEO effective Jan. 1, announced the pause alongside this week’s financial report.
“When I decided to join Kraft Heinz, I knew that this was an exciting opportunity to contemporize iconic brands, better serve consumers and customers, and build meaningful shareholder value,” Cahillane says. “Since joining the company, I have seen that the opportunity is larger than expected and that many of our challenges are fixable and within our control. My No. 1 priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan. As a result, we believe it is prudent to pause work related to the separation, and we will no longer incur related dis-synergies this year.”
To accelerate momentum and drive recovery in its U.S. business, Kraft Heinz is investing $600 million across marketing, sales and research and development (R&D), as well as product superiority and select pricing, Cahillane says.
“Kraft Heinz is already seeing the benefit of Steve’s deep industry experience and proven track record of building brands and leading large-scale transformations,” says John T. Cahill, chair of Kraft Heinz’s board. “From day one, he has brought a fresh, consumer-first perspective that we believe creates a clear glidepath back to profitable growth. We are confident that our decision to pause the work related to the separation and fully focusing our resources in service of growth is the right move at this time. We remain excited about the road ahead for Kraft Heinz.”
In the fourth quarter ending Dec. 27, net sales decreased 3.4% to $6.4 billion, and organic net sales decreased 4.2% compared to the same 2024 period. For the full 2025 year, net sales decreased 3.5% to $24.9 billion, while organic net sales decreased 3.4%.
Gross profit margin in the fourth quarter decreased 150 basis points to 32.6%, while adjusted gross profit margin decreased 130 basis points to 33.1%. For the year, gross profit margin decreased 140 basis points to 33.3%, and adjusted gross profit margin decreased 120 basis points to 33.5%.
Operating income for the fourth quarter was $1.1 billion, and adjusted operating income was $1.2 billion, down 15.9%. For the full year, there was an operating loss of $4.7 billion, driven by a non-cash impairment losses of $9.3 billion. Full year adjusted operating income was $4.7 billion, down 11.5%.
For the fourth quarter, diluted earnings per share (EPS) were $0.55, down 68.8%. Adjusted EPS was $0.67, down 20.2%.
For the full year 2025, net cash provided by operating activities was $4.5 billion, up 6.6%. Free cash flow was $3.7 billion, up 15.9%. Return of capital to stockholders was $2.3 billion.
For fiscal year 2026, Kraft Heinz expects organic net sales to be down 1.5% to 3.5% compared to the prior year, including an approximate 100 basis point impact from incremental headwinds from cuts to the Supplemental Nutrition Assistance Program (SNAP).
Constant currency adjusted operating income is expected to be down 14% compared to the prior year. This includes the company’s incremental investments of approximately $600 million across marketing, sales and R&D.
Adjusted EPS in the range of $1.98 to $2.10 is expected for 2026, the company adds, noting that it expects an effective tax rate on adjusted EPS to be approximately 25.5%. Additionally, the company expects interest expense to be approximately $940 million and other expense (income) to be approximately $200 billion of income for the full year.
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Economic analysis shows ag trade is higher under USMCA |
February 13, 2026 |
WASHINGTON — Every dollar in ag industry exports under the U.S.-Mexico-Canada Agreement (USMCA) drove an additional $2.45 of supported economic activity in the United States, according to a new analysis.
During a press conference this week, members of the Agricultural Coalition for USMCA highlighted the findings of this new economic analysis released by the group and urged leaders of the United States, Canada and Mexico to renew and further strengthen USMCA as the agreement enters its formal review period.
“Our analysis shows that USMCA is a powerful driver for employment, investment and long-term competitiveness in the U.S. agricultural sector,” says Krista Swanson, chief economist for the National Corn Growers Association, a member of the coalition. “While the agreement is due for a few targeted improvements, overall, it is critical to the farm economy and a key part of rural America’s success and resilience, particularly during tough economic times like we are in now.”
Under the terms of the agreement, the United States, Canada and Mexico must begin a formal review of USMCA by July. As part of the process, the three countries will determine whether to renew the agreement, make targeted updates, terminate or shift to annual consultations.
This economic impact analysis uses a 2024 base-year model to evaluate the impact of U.S. agricultural
and seafood exports to Canada and Mexico under USMCA.
In addition to its findings on economic activity supported by USMCA, the analysis reports agricultural and seafood exports to Canada and Mexico generated $149 billion in total economic output, supporting nearly half a million jobs and $36 billion in wages.
USMCA-related agricultural and seafood trade also contributed $64 billion to U.S. gross domestic product (GDP) and supported $13 billion in federal, state and local tax revenue.
The analysis examined the economic benefits of USMCA across key agricultural commodities. During the press conference, coalition members highlighted how the agreement supports growth, stability and market access in their respective sectors.
“Mexico is a very lucrative market for America’s dairy farmers, and Canada too represents important export sales as well as the opportunity for more growth,” says National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) Executive Vice President for Trade Policy and Global Affairs Shawna Morris. “USMCA is vital to our ability to trade with both partners. We urge the president to renew the agreement with targeted changes that will make it even more robust and helpful to farmers.”
As industry leaders are urging leaders to renew USMCA, they also see its review as an opportunity to make targeted enhancements.
“USMCA is an extremely strong agreement, but it is not perfect. Canada still has a lot of work to do,” Morris says, explaining that there need to be reforms in how Canada uses its dairy tariff-rate quotas, and Mexico still hasn’t implemented some of its agreements on common cheese names.
“We need to iron out and follow through on these issues so we get the access we were promised,” she adds.
The recently formed Agricultural Coalition for USMCA is a broad-based alliance representing many U.S. food and agricultural trade associations, state agriculture leadership and related interests committed to the renewal of USMCA (see “Dairy groups see opportunity in global trade developments” in last week’s issue of Cheese Market News).
Also this week, Ted Vander Schaaf, an Idaho dairy farmer and member-owner of Northwest Dairy Association,
testified before the Senate Finance Committee on the importance of USMCA to the U.S. dairy industry and the improvements needed for the agreement to fully deliver for American dairy farmers.
Vander Schaaf serves on the board of directors for the Northwest Dairy Association, the cooperative that owns Darigold, and the Idaho Dairymen’s Association, both of which are members of NMPF and USDEC.
“Strong, enforceable trade agreements are critically important to the U.S. dairy industry. The United States exported approximately $9 billion in dairy products in 2025, including a record 559,000 metric tons of cheese last year through November,” Vander Schaaf said at the hearing.
Vander Schaaf highlighted Canada’s continued manipulation of its dairy tariff-rate quotas and its circumvention of USMCA dairy protein export disciplines, which have limited U.S. producers’ ability to compete in Canada and other markets. He also noted that while Mexico has been a great partner, it has still not fully met its commitments to protect common cheese names such as “parmesan” and “feta.”
“For U.S. dairy producers, exports are critical — not just for growth but for survival — and we all agree it must continue. But a firm base depends on Canada upholding their end of the bargain and on preserving our fully open trade flows with Mexico,” Vander Schaaf testified. “The U.S. dairy industry is counting on Congress and the administration to help us fix the issues that I have laid out today, and to secure a better, stronger USMCA for American dairy farmers.”
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| BelGioioso introduces new Hispanic Selection shredded, grated cheeses
GREEN BAY, Wis. — BelGioioso, famous for its award-winning Italian cheese styles from Fresh Mozzarella and Mascarpone to Parmesan, Asiago and a number of other specialties, has entered a new era. For the first time in the company’s nearly 50 years, it is expanding beyond Italian cheeses with the official launch of its Hispanic Selection line.
“We are bringing our expertise, care and dedication to quality and craftsmanship to new shoppers in a category that continues to grow in both cultural relevance and consumer demand,” says Gaetano Auricchio, president, BelGioioso Cheese. “BelGioioso has built its reputation by bringing authenticity and consistency to specialty cheese. Hispanic Selection is a natural extension of that philosophy, expanding the company’s portfolio in a way that reflects the way consumers shop and cook.”
As the new line, which currently includes shredded Oaxaca and Quesadilla as well as grated Cotija cheeses, expands BelGioioso’s offerings to both retail and foodservice customers, it also proves to be an ideal fit with its existing portfolio and production capabilities.
“We’re a specialty cheese manufacturer, and some of the cheeses in our Hispanic line are in the same family of Mozzarella or Provolone. They use much of the same ingredients as pasta filata cheeses. We have the capabilities, and the market has a need,” says Umberto Marconi, vice president of marketing, BelGioioso Cheese.
Marconi explains that the Hispanic Selection line is a natural extension of BelGioioso’s cheesemaking expertise and shares many of the same core attributes as the company’s Italian-style portfolio — milk-forward flavor, controlled moisture and performance in everyday cooking applications. The line was developed in response to strong category growth and customer demand for high-quality, consistent Hispanic-style cheeses from a trusted specialty producer.
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Dairy groups see opportunity in global trade developments |
February 6, 2026 |
WASHINGTON — U.S. dairy industry groups have been working with government officials to ensure the most recent global trade developments yield additional market opportunities for dairy exporters.
Earlier this week, President Trump announced on social media that after speaking with Indian Prime Minister Narendra Modi, a trade deal had been reached that would lower tariffs and remove nontariff barriers.
“Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%,” Trump posted on Monday on Truth Social. “They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward.”
Modi thanked Trump in a post on X later that day, confirming that the U.S. tariff on products from India had been reduced to 18%.
“When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation,” Modi added.
The International Dairy Foods Association (IDFA) applauded this announcement, noting that for years IDFA has been working with the U.S. government to support a positive agriculture trade relationship with India. As the United States continues constructive discussions with the Indian government on a range of agricultural trade issues, IDFA says it remains supportive of improving the bilateral relationship, facilitating greater understanding of each country’s needs and concluding the negotiations.
“IDFA supports a stronger U.S.-India trade relationship and is grateful to President Trump and his administration as well as the government of India for working toward that common goal,” says Michael Dykes, president and CEO, IDFA.
Meanwhile, IDFA, the National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) are among 40 farm and agricultural groups that yesterday launched the Agricultural Coalition for the United States-Mexico-Canada Agreement (USMCA), an industrywide effort to support the strengthening and renewal of USMCA.
USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020, mandates a “joint review” in 2026, which allows the countries to consider potential changes to the agreement.
Since the stakeholder engagement process began in October 2025, the U.S. dairy industry has spoken to the importance of the agreement while stressing that certain critical shortcomings must be addressed.
“USMCA has helped grow vital export opportunities that support dairy farm incomes across the country. Unfortunately, Canada has clearly not upheld their end of the deal and Mexico needs to fully implement USMCA commitments to respect our use of common cheese names. We look forward to working with the administration during the review to ensure our trading partners honor their commitments so the agreement can best deliver for dairy farmers,” says Gregg Doud, president and CEO of NMPF.
“USMCA has been critical to maintaining strong export demand for U.S. dairy farmers, manufacturers and exporters, providing greater opportunities in the Mexican market in particular,” says Krysta Harden, president and CEO of USDEC. “At the same time, persistent market access barriers, particularly in Canada, limit the full potential of the agreement and must be addressed to ensure that U.S. dairy exporters receive the benefits they were promised.”
The U.S. dairy industry exported about $3.6 billion in dairy products to Canada and Mexico in 2024, which accounts for about 44 percent of total export value. At the same time, USMCA has fallen short in certain key areas, according to USDEC and NMPF.
The groups note they will continue to fight for several priorities in the review, including through the new coalition, such as:
• Combatting Canada’s continued manipulation of its administration of dairy tariff-rate quotas, denying U.S. exporters the meaningful market access guaranteed under USMCA.
• Tackling Canada’s circumvention of USMCA dairy protein export disciplines.
• Ensuring that Mexico upholds its USMCA commitments to protect common cheese names such as “feta.”
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December cheese production up; 2025 total sets new record |
February 6, 2026 |
WASHINGTON — December U.S. cheese production, excluding cottage cheese, totaled 1.279 billion pounds, up 6.7% from December 2024, according to data released this week by USDA’s Natural Agricultural Statistics Service (NASS). December cheese production was up 4.4% from the 1.224 billion pounds produced in November, and up 1.1% on a daily average basis. (All figures are rounded. Please see CMN’s Dairy Production chart on page 14.)
The preliminary total for cheese production in 2025 reached a record 14.661 billion pounds, up 2.9% from 2024’s 14.249 billion pounds.
Italian-type cheese production in December totaled 561.0 million pounds, up 7.4% from December 2024. Production of Mozzarella, the largest component of Italian-type cheese production, totaled 440.6 million pounds in December, up 5.9% from a year earlier.
American-type cheese production in December totaled 500.2 million pounds, up 6.8% from December 2024. Production of Cheddar, the largest component of American-type cheese, totaled 340.4 million pounds, up 9.0% from December 2024.
Wisconsin was the leading cheese-producing state with 315.0 million pounds produced in December, up 2.8% from December 2024. California followed with 216.6 million pounds produced in December, up 5.8% from a year earlier.
U.S. production of butter totaled 203.8 million pounds in December, up 2.0% from December 2024. December butter production was up 15.0% from November’s 177.2 million pounds, and up 11.3% on a daily average basis. California was the leading butter-producing state with 51.2 million pounds produced in December, down 0.3% from December 2024.
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Savencia Cheese USA plans to expand facility in Lena, Illinois |
February 6, 2026 |
LENA, Ill. — Illinois Gov. JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) late last week announced that Savencia Cheese USA will expand its existing production facility in Lena, Illinois, transferring production know-how from France to Illinois. The company plans to add a new production line as part of its capital investment, which will create 50 new full-time jobs while retaining 125 existing jobs.
“For decades, Savencia Cheese has been producing and perfecting its globally renowned cheeses in Lena. While Savencia is known around the globe for its world-class products, it is known here as a community fixture — and a longtime engine of jobs and economic opportunity,” Pritzker says. “Through competitive incentive programs, workforce development and our state’s robust business development efforts, Illinois supports job creators that invest back into their communities.”
Savencia’s investment was supported by the Economic Development for a Growing Economy (EDGE) program.
“Through strategic initiatives like the EDGE program, DCEO is creating and expanding domestic and international relationships that foster new economic development and job opportunities,” says DCEO Director Kristin Richards. “Illinois remains committed to fostering long-term economic growth by supporting the industries that keep our state competitive on a global scale.”
Laurent Marembaud, secretary general of Groupe Savencia, says the group is pleased to continue its investments in the Kolb-Lena facility — with the support of the State of Illinois — to locally produce the best natural cheeses for U.S. consumers.
Savencia Cheese USA, a subsidiary of the French company Savencia SA, acquired its Kolb-Lena facility in 1987. Savencia specializes in the production and distribution of high-quality specialty cheeses across the United States, offering a diverse range of cheese products that serve both gourmet and everyday consumers.
“Savencia is reinforcing Illinois’ leadership in modern food manufacturing while creating and retaining quality jobs in a community that has long played a critical role in the state’s agricultural economy,” says Christy George, president and CEO of the Illinois
Economic Development Corp.
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CoBank outlines potential of dairy to meet protein demand |
January 30, 2026 |
DENVER — Consumer demand for foods and beverages with high protein levels continues to surge as a growing percentage of Americans focus on increasing their dietary protein. The sharp rise in demand is shifting buying habits and ultimately could transform the retail grocery space, says a new report from CoBank’s Knowledge Exchange. Food and beverage manufacturers representing a host of product categories are moving quickly to respond with new product offerings and position themselves for success with protein-hungry consumers.
According to the report, this strong consumer demand for protein bodes well for the U.S. dairy industry given the high protein levels and nutritional qualities in traditional dairy products like milk, cheese, yogurt and cottage cheese. But for dairy processors, the opportunity extends well beyond staple products in the retail dairy case. Dairy-based ingredients increasingly are being used to boost protein content in a wide variety of products including baked goods, protein bars, ready-to-drink protein shakes and whey powders.
“The dairy industry is in a great position to help consumers meet their protein intake goals,” says Corey Geiger, lead dairy economist with CoBank. “Dairy products have a unique advantage because they contain all nine essential amino acids required in a human diet, making it a complete protein source. We expect more food and beverage manufacturers will take a cue from formulators that have already incorporated dairy-based ingredients into protein-centric product areas outside of the retail dairy case.”
Consumers of virtually all ages associate protein with an expanding array of health benefits, and the momentum behind protein has been building in recent years. In 2022, 59% of American consumers reported trying to consume more protein in their diet, according to the International Food Information Council (IFIC). By 2023, the percentage had grown to 67% and in 2025, seven in 10 American consumers wanted their diets to include more protein content.
“Protein is top of mind for consumers in making a better-for-you purchase,” says Billy Roberts, senior food and beverage analyst with CoBank. “And dairy products’ inherent benefits position them well to resonate with consumers, particularly those adjusting their diets for weight loss or to abide by the recently announced Dietary Guidelines.”
The new U.S. Dietary Guidelines for Americans announced on Jan. 7 increase the recommended daily allowance of dietary protein for adults from 0.8 grams to 1.2 to 1.6 grams per kilogram of body weight.
Increased usage of GLP-1 medications for weight loss also is sparking more widespread consumer interest in dietary protein. According to KFF, at least 12% of adults indicated they were taking GLP-1 medications in November 2025. That percentage is expected to climb even higher as less expensive pill forms of the weight-loss medication are set to debut this year, CoBank says.
A study by Cornell University found that GLP-1 users are increasing their spending in a handful of categories, including yogurt, fresh fruits and vegetables, meat snacks and protein bars, CoBank adds. Echoing those findings, Danone, maker of Oikos Greek yogurt, has reported double-digit growth in its high-protein offerings, a trend it says has accelerated with the adoption of GLP-1 medications.
Beyond meeting consumer demand, food and beverage makers have an added incentive for offering more high protein products — price. According to estimates from Circana and other market research firms, food and beverage products with a high-protein label claim can command a price premium of as much as 12%.
While the snacking category has been growing for decades, protein claims remain somewhat of an afterthought, the report notes. Only 17% of consumers indicate they prioritize protein when selecting a snack, according to IFIC. That creates an opportunity for snack makers to leverage protein as a product attribute and protein-rich dairy products could play a role in shifting consumers’ criteria for snacks. Building on that opportunity, the role of a healthier, more satiating snack with high protein content could solve multiple consumer demands, including health and convenience.
Ready-to-drink protein shakes also represent a key growth opportunity for the dairy industry. While traditional fluid milk sales have been sluggish, data from Circana indicates sales in the protein shake category climbed 71% over the last four years. That represents a jump from $4.7 billion to $8.1 billion in dollar sales, with continued growth expected in the category, the report adds.
“The amino acids in dairy products will create even more opportunities for dairy as standalone products and ingredients as food manufacturers look to boost protein content, reduce sugar levels and create more streamlined, clean-labeled products,” Geiger says. “Ultimately, this transformation in the retail space represents a significant, long-term opportunity for dairy processors and food manufacturers alike.”
To read the full analysis, visit https://cobank.com/knowledge-exchange/dairy/dairy-poised-to-help-meet-consumers-growing-demand-for-protein.
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Milk production rises 4.6% in December in 24 major states |
January 30, 2026 |
WASHINGTON — Milk production in the 24 major milk-producing states in December totaled 18.82 billion pounds, up 4.6% from December 2024’s 18.00 billion pounds, according to data released last week by USDA’s National Agricultural Statistics Service (NASS). November revised production for the 24 major states was 18.08 billion pounds. (All figures are rounded. Please see CMN’s Milk Production chart.)
For the entire United States, December milk production was estimated at 19.57 billion pounds, up 4.4% from December 2024’s 18.74 billion pounds.
Preliminary full-year 2025 milk production in the 24 major milk-producing states totaled 222.48 billion pounds, up 2.6% from 2024. For the entire United States, preliminary full-year milk production in 2025 is estimated at a record 231.48 billion pounds, up 2.5% from the 2024 total.
December production per cow in the 24 major states averaged 2,060 pounds, up 42 pounds from December 2024 and up 79 pounds from November. For the entire United States, production per cow in December is estimated at 2,045 pounds, up 41 pounds from December 2024 and up 78 pounds from November.
NASS reports the number of milk cows on farms in the 24 major states was 9.14 million head in December, up 222,000 head from December 2024 and up 9,000 head from November. In the entire United States, there were an estimated 9.57 million head in December, up 212,000 head from December 2024 and up 9,000 head from November.
California led the nation’s milk production in December with 3.48 billion pounds of milk, up 9.6% from December 2024. Wisconsin followed with 2.76 billion pounds of milk produced in December, up 2.8% from December 2024.
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Trump threatens Canada, Korea with tariffs; EU and India ink deal |
January 30, 2026 |
WASHINGTON — President Trump this past week on his Truth Social account threatened to impose a 100% tariff on Canadian goods if Canada makes a trade deal with China, as well as to raise reciprocal tariffs on South Korea from 15% to 25% because the country hasn’t enacted the trade agreement with the United States.
Last weekend Trump posted, “If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” adding that “If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the U.S.A.”
Yesterday, Trump also posted that he would impose a 50% tariff on airplanes from Canada unless Canada certified U.S. aircraft.
According to several news reports, Canadian Prime Minister Mark Carney has denied that Canada is looking at a free trade agreement with China, though there is a deal between the countries that would lower tariffs on certain items such as Canadian ag products and Chinese electric vehicles. Additionally, Carney suggested to reporters earlier this week that his comments were a negotiating strategy with talks approaching on the U.S.-Mexico-Canada trade agreement (USMCA).
Earlier this week, Trump posted that, because the Korean legislature hadn’t enacted the U.S.-Korea trade agreement, tariffs on South Korean autos, lumber, pharmaceuticals and other reciprocal tariffs would increase from 15% to 25%.
“South Korea’s Legislature is not living up to its Deal with the United States,” he wrote Monday on Truth Social. “President Lee and I reached a Great Deal for both Countries on July 30, 2025, and we reaffirmed these terms while I was in Korea on October 29, 2025. Whey hasn’t the Korean Legislature approved it?”
Korea’s Yonhap news agency reported yesterday that South Korean Trade Minister Yeo Han-koo was on his way to meet with U.S. officials and said he will make the utmost effort to find reasonable solutions to pending trade issues following Trump’s tariff threat.
Meanwhile, after a number of European countries received their own tariff threats amid a dispute over Greenland (see “Trump backs off tariff threats over acquisition of Greenland” in last week’s issue of Cheese Market News), the European Union (EU) and India announced they have concluded a landmark free trade agreement, the largest such deal ever made by either side.
The trade deal is expected to double EU goods exports to India by 2032 by eliminating or reducing tariffs by 96.6% in value of EU goods exports to India. Meanwhile, the agreement delivers unprecedented market access for more than 99% of India’s exports by trade value, while preserving policy space for sensitive Indian sectors, including dairy.
“The EU and India make history today, deepening the partnership between the world’s biggest democracies,” European Commission President Ursula von der Leyen said when the negotiations concluded on Monday. “We have created a free trade zone of 2 billion people, with both sides set to gain economically. We have sent a signal to the world that rules-based cooperation still delivers great outcomes.”
Eucolait, an organization comprised of EU dairy traders, released a statement that it welcomes trade agreements that enhance cooperation and economic integration, though it strongly regrets the apparent exclusion of the dairy sector from the scope of the agreement.
“While we await the publication of the legal texts, dairy products do not appear to be among the agri-food products benefiting from improved market access. This represents a clear missed opportunity for our industry,” the statement says.
Because India’s dairy policy is firmly anchored in self-sufficiency, high import tariffs remain the norm, and EU dairy exports to India currently are limited largely to lactose and whey powders, which are subject to comparatively lower tariffs of around 20% to 30%, Eucolait explains, adding that it recognizes the sensitivity of the dairy sector in India, given its market structure and the predominance of household and small family farms.
“Nevertheless, limited and carefully calibrated concessions — such as tariff-rate quotas for selected dairy products or ingredients — would not have had any meaningful impact on the Indian market, given its sheer size,” Eucolait says.
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