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U.S. dairy exports to Malaysia are gaining significant momentum following a recent trade mission led by Undersecretary for Trade and Foreign Agricultural Affairs Luke Lindbergh. The mission has fostered discussions on dairy market access, especially under President Trump’s new trade agreement with Malaysia. This agreement addresses previous challenges related to Halal certification, a critical requirement for imported food products in Malaysia, a predominantly Muslim-majority country.

Lindbergh indicated that the outlook for U.S. dairy exports, particularly cheese, is promising. He noted, “Our cheese exports are actually up 245 percent over the last year, 23 percent on dairy specifically overall.” This surge underscores the growing consumer demand for U.S. dairy products and presents expanding opportunities for American dairy farmers and processors.

Historically, Halal certification has been a challenge in the U.S.–Malaysia dairy trade, but the new trade agreement aims to streamline certification procedures. Lindbergh explained that this change reduces friction for U.S. dairy exporters and improves consistency and predictability in market access.

The agreement’s provisions include lowering tariffs and reducing regulatory barriers, which better positions U.S. dairy producers to compete effectively in the Malaysian market. Lindbergh expressed optimism, stating, “We’re very optimistic. We see a very bright future and already great momentum for dairy in Malaysia.”

With rising demand for products like cheese and other value-added dairy items, Malaysia is becoming a key growth market in Southeast Asia. This growth is part of a broader strategy to expand U.S. agricultural exports and open new opportunities for American farmers and agribusinesses.

Overall, the trade mission and the subsequent agreement highlight the potential for U.S. dairy exports to become a major success story within the U.S.–Malaysia trade relationship, with strong growth, improved access, and long-term potential firmly in place.

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Following a poor run of results in recent months, the Global Dairy Trade (GDT) has recorded a positive start to 2026.

The inaugural Global Dairy Trade (GDT) event of 2026, identified as Event 395, took place on January 6 and sent a positive message to the international dairy market. The GDT Price Index experienced a notable rise of 6.3% compared to the previous event, signifying a robust start to the year for global dairy prices.

Experts noted that the strong rise in the index (+6.3%) was largely driven by the significant share of milk powder—especially whole milk powder—in total traded volumes, which were considerably lower than at previous auctions.

The auction highlighted a strong buyer presence, with average winning prices hitting USD 3,533 per metric ton, indicating increased competition and willingness to pay among buyers. There were 177 registered bidders participating in the auction, out of which 114 emerged as successful buyers.

The auction was extensive, comprising 26 bidding rounds over a span of 2 hours and 57 minutes, underscoring the intensity and demand present in the market. The volume of dairy products traded ranged between 27,936 and 34,923 metric tons, with the total quantity sold amounting to 29,282 metric tons, consistent with recent events.

This strong performance in the first GDT of 2026 provides a positive outlook for dairy producers, processors, and exporting countries, who are closely monitoring international price trends following a cautious end to 2025.

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The Whole Milk for Healthy Kids Act has successfully cleared (Dec 15, 2025) both chambers of Congress, signifying a significant policy reversal regarding milk options available in US schools. This legislation overturns a 2012 federal rule from the Healthy, Hunger-Free Kids Act which restricted school milk offerings to only fat-free or 1 percent varieties. The bill, championed by bipartisan support and expected to be signed by President Trump, aims to reintroduce whole and 2 percent milk options.

Dairy farmers and industry representatives have warmly welcomed this legislative change, viewing it as a potential market booster. Keith Kimball, chairperson of the Northeast Dairy Producers Association, noted that whole milk contains essential nutrients beneficial for children’s growth. The reintroduction of whole milk is seen as a way to meet children’s beverage preferences while promoting science-backed nutrition choices.

Economist Daniel Munch from the American Farm Bureau Federation noted that while the legislation might not result in substantial windfalls for dairy farmers, it is anticipated to have a measurable impact on dairy markets. Schools, serving nearly 4.9 billion lunches in 2024, could shift significant butterfat volumes from butter and cheese production back into fluid milk channels. This change may benefit smaller dairies by creating local farm-to-school supply opportunities.

Senator Kirsten Gillibrand emphasized the importance of the legislation for student nutrition and local agriculture, highlighting the National School Lunch Program’s influence on dairy demand. The program serves about 30 million students daily and accounts for approximately 7.5 percent of US fluid milk sales, thus playing a key role in shaping market dynamics.

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