US dairy exports surge 14% in May as food prices rise 26% over five years

U.S. dairy exports increased 14% in May, extending an eight‑month growth streak. Exporters shifted from powders to finished products, boosting cheese shipments by 18% to over 60,000 metric tons and sending butter exports soaring, especially to Saudi Arabia where they jumped 473%. Overall export value reached $4.32 billion, with the biggest gains in the Middle East, Africa, Mexico and South Korea.

At the same time, a CoBank report shows U.S. food prices are up 26% compared with five years ago, with the food price index rising 2.7% from May 2025. Consumers are cutting back, opting for lower‑cost brands and discount retailers. Beef demand remains firm, while cheese and butter export volumes have risen 25% and 88% respectively year‑to‑date, helping offset some domestic price pressure for producers.