Goat Milk

Is the United States’ dairy industry on the brink of a new golden age of dairy trade? The International Dairy Foods Association (IDFA) thinks so.

Industry Growth Fueled by Strategic Investments – The U.S. dairy industry, a vital economic engine supporting over 3.2 million jobs and contributing nearly $800 billion to the national economy, is poised for sustainable growth. According to the International Dairy Foods Association (IDFA), the industry has committed over $8 billion to expanding processing capacities, expected to come online in the coming years.

Record Exports Fuel Optimism – The optimism is fueled by new data from the USDA revealing that U.S. dairy exports reached $8.2 billion in 2024, marking the second-highest total in history. These exports saw an increase of $223 million from the previous year, with Mexico and Canada as the top trading partners, accounting for over 40% of total exports and achieving new value records.

Challenges and Strategic Priorities – However, challenges remain. China and Southeast Asia including the Philippines, Vietnam, and Malaysia imports have dropped to their lowest levels since 2020, highlighting a need for strategic trade policies. IDFA President and CEO Michael Dykes emphasized the necessity of a trade agenda prioritizing market access and equitable conditions.

“To truly lead the global dairy market, we need trade deals that enhance market access and address existing barriers,” stated Dykes.

Future Opportunities for Expansion – Today, approximately one day’s worth of milk produced on America’s dairy farms each week is exported, or roughly 18% of all production. As U.S. milk production continues to increase over the next decade, expanding markets will become even more vital to ensure the global competitiveness of the industry and to boost the American economy.

The U.S. is currently the third-largest global dairy exporter, following New Zealand and the European Union. As production continues to rise, expanding international markets will be crucial for maintaining competitiveness and supporting economic growth. The IDFA suggests that with strategic trade agreements, American dairy could reshape the global market landscape for decades.

“Overall, U.S. dairy exports are performing well, but we can do more,” Dykes concluded.

“With new trade agreements that remove obstacles and increase market access, we wouldn’t just break records — we would redefine the global dairy landscape for decades to come.”

A classic British combo in the form of a comforting pie, boasting chunky pieces of sausage covered with lashings of rich onion gravy.

Preparation time less than 30 mins, Cooking time 30 mins to 1 hour Serves 4–6

Ingredients:

For the mash

• 1kg/2lb 4oz Maris Piper potatoes, peeled and cut into large chunks
• 50ml/2fl oz goats milk
• 40g/1½oz salted butter
• 25g/1oz cheddar, grated

For the filling

• ½ tbsp oil, for frying
• 8 pork sausages (we used Cumberland)
• 1 tbsp salted butter
• 1 large onion, sliced
• 1 garlic clove, crushed
• 1 tbsp dried mixed herbs
• 2 tbsp apple chutney
• 1 tsp wholegrain mustard
• 2 tbsp plain flour
• 1 tbsp cider vinegar
• 500ml/18fl oz hot beef stock
• sea salt and cracked black pepper

Directions: 

• Preheat the oven to 200C/180C Fan/Gas 6.
• Place the potatoes in a large saucepan of salted water. Bring to the boil, then turn down the heat to medium and allow to simmer for 10–15 minutes until the potato is soft when tested with a sharp knife.
• Drain the cooked potatoes into a colander, then return them to the warm pan along with the milk, butter and some salt and pepper. Mash the potatoes until smooth and fluffy. Set aside ready for assembly.
• Meanwhile, make the filling. Warm the oil in a pan over a medium heat then add the sausages. Fry for 8–10 minutes, browning the sausages on all sides. Remove the sausages from the pan and transfer to a plate.
• In the same pan, melt the butter then add the onion. Fry the onions for 4–5 minutes until they start to soften and brown. Add a pinch of salt and the garlic. Fry for a further 1–2 minutes.
• Sprinkle in the herbs and stir through the chutney and mustard. Sprinkle in the flour, stir to coat the onions, then add any juices from the sausage plate along with the cider vinegar and stock.
• Bring everything in the pan to the boil before reducing the heat to a rapid simmer. Cook for 5–8 minutes until the liquid is reduced and a thick, glossy gravy is created. Chop the cooked sausages into chunky pieces and add to the gravy. Taste and season as necessary with salt and pepper.
• Carefully pour the sausage mixture into an ovenproof dish before spooning over the prepared mashed potatoes. Sprinkle with the grated cheese and place in the oven for 25–30 minutes until the potato is golden and crispy.
• Remove from the oven and allow to rest for 5 minutes before serving alongside seasonal greens.

The U.S. dairy industry has traditionally relied on monthly milk production reports from the USDA to monitor the availability of milk supplies and project dairy product output. Historically, decreases in farmgate milk production indicated reduced supplies of both fluid milk and key milk components, like butterfat and protein, which are essential for producing dairy products such as cheese, butter, and yogurt. A decline in milk supplies often signaled the potential slowdown of dairy processor expansion plans.

However, the dynamics of U.S. milk production are evolving. While the total volume of milk production has declined for 14 consecutive months through September 2024, the production of butterfat and protein—key components in many dairy products—has increased in 12 of those months. This shift underscores a significant transformation in the industry, where milk composition now plays a more critical role than overall milk volume.

A report from CoBank’s Knowledge Exchange describes this “decoupling” of fluid milk production from milk component production as a paradigm shift driven by increased consumer demand for manufactured dairy products. More than 80% of U.S. milk is used for producing solid dairy products that depend heavily on milk components, while less than 20% is used in fluid beverages.

To adapt to these changes, the report suggests that the USDA’s milk production reports should be expanded to include data on protein and butterfat levels, providing a more comprehensive view of the industry. Corey Geiger, lead dairy economist at CoBank, noted, “A more robust report would be informative to producers, processors, and retailers for better planning and risk management.”

The shift in focus from milk volume to milk solids is reshaping the dairy market. Cheese production, for instance, has benefitted from higher butterfat and protein yields in milk, with each 100 pounds of milk yielding 11.2 pounds of cheese in 2023, compared to 10.1 pounds in 2010.

This trend extends beyond the U.S. domestic market, as manufactured dairy products are driving export growth, further emphasizing the demand for milk components. With over $7 billion invested in new dairy processing capacity, both at home and abroad, the industry is poised for continued growth in response to these shifting demands.

The Milk Component Pricing provisions have incentivized dairy producers to focus on increasing protein and butterfat content in their milk, driven by soaring consumer demand for high-quality dairy products like cheese and yogurt.

While updating the USDA’s monthly milk reports to include milk component data may pose challenges, Geiger emphasizes the long-term benefits for the industry, given the permanent shift towards milk solids in consumer preferences.