One in every six gallons produced by US dairy farmers is turned into dairy products for export abroad. Mexico remains the primary market for US dairy exports, having experienced increased imports during 2023. Although international markets can be volatile, U.S. dairy exports appear promising for years to come. Trends The dairy industry remains beset with labor shortages. Processors have difficulty recruiting workers and may need to reduce shifts, which has a direct impact on production and profitability. Therefore, support of labor solutions must remain a top priority of future dairy policy initiatives. Overall exports remain strong despite global market uncertainty. The U.S. dairy industry experienced modest growth while other major dairy exporters like New Zealand and EU27+UK experienced decreases. These trends reflect cautious confidence in the dairy sector. Domestic demand continues to expand due to aggressive marketing and increased restaurant visitation, and milk prices are gradu...