Analysis milk
US butter exports to EU are increasing rapidly
US butter exports to the EU are increasing rapidly this year, according to preliminary data released by the USDEC, the US Dairy Export Administration. In the first seven months of 2025, more than 260 times as much butter was shipped to the EU than in the same period in 2024. Exports skyrocketed, particularly in July of this year.
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The cause of the rapidly increasing exports is the large price difference between European and American butter and butteroil. Even after accounting for hefty European import tariffs, it was still profitable to import butter into the EU, but these tariffs can often be legally circumvented through "inward processing." This allows for the exchange of product volumes.
Through July of this year, 8.366 tons of butter were exported from the US to the EU, compared to 32 tons in the same period in 2024. This made the EU the third largest export destination for American milk fat this year, after Canada and Mexico. Last year, the EU barely made a dent. A significant amount of American butter also went to the EU in the months following July, but figures for that are not yet available. The Netherlands is a major buyer, with over 1.300 tons in July.
A large portion of the butter imported from the US entered the EU via the Netherlands.
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Cheese
American cheese exports have also risen sharply, reaching 346.112 tons through July. Europe ranks twelfth as an export destination, with 2.014 tons. Last year, through July, 533 tons of cheese went from the US to the EU. While significantly more cheese went to the EU this year, there's no clear upward pattern in exports. The vast majority of cheese from the US goes to Mexico, a range of Asian destinations, and Central and South America.