The exchange of letters contained in this agreement formalize protections for U.S. cheese exports to Chile, which make up over half of all U.S. dairy exports to Chile and exceeded $55 million in 2023.

Dairy exports will outpace imports though.

However, competition to provide protein to Southeast Asia is strong, and not just from dairy companies.

While it is typically obvious when a team wins, loses or ties (although ties are a rarity in sports these days), in the commodity export world, a win depends on how you define it. 

In 2022, China was ranked No. 1 in U.S. exports of agricultural products. The total export value has increased significantly every year since 2018, rising 14% most recently from 2021 to 2022. 

The U.S. dairy industry is increasingly reliant on export markets for growth and profitability.

U.S. dairy exports set new volume and value records again in 2022. This feat was accomplished despite high inflation and a host of other challenges to international trade, according to the U.S. Dairy Export Council (USDEC), Arlington, Va. 

Dairy market price uncertainty remains across regions and dairy products, Rabobank stated.

Some dairy categories are still stationed at mission control waiting for the perfect weather conditions. However, a majority of segments are ready for takeoff, especially as dairy consumption reaches an all-time high, according to FDA data.

The future looks bright however.