Relentless Growth Keeps Processors Hopping

A DairyBusiness article

Relentless growth in milk output and sky-high components kept dairy manufacturers busy in July. Dairy processors made 2.1% more cheese and 5.5% more butter than in July 2025. Domestic demand is not keeping pace with this growth, and neither are exports. Despite another month of record-smashing cheese shipments, year-over-year growth in January through July cheese exports was 19.5 million pounds smaller than the increase in cheese output. Meanwhile butter exports fell short of year-ago volumes in July. In the first seven months of the year, butter output outpaced 2025 volumes by 86 million pounds, while exports grew just 36 million pounds. It’s no surprise, then, to see these markets remain under pressure. CME spot butter fell 2.25ȼ this week to $1.44 per pound. CME spot Cheddar blocks retreated 1.75ȼ to a two-month low of $1.465.

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