US dairy exports are expected to increase even as worldwide dairy production grows. Global production trends and Canada’s highly regulated dairy sector both affect US exports and dairy product prices for US consumers. US skim and whole milk powder exports were down in the third quarter 16% and 10%, respectively. Mexico, which once imported up to 90% of its milk powder from the US, is now turning to Canada and the European Union (EU) for milk. The EU currently has a milk powder surplus due to increased production, allowing for competitive and attractive pricing. Despite these concerns, the US dairy sector should not panic. US exports to China are rapidly increasing. Despite slower skim milk powder export growth in 2017, the dairy industry has plenty of reasons to celebrate with increases in cheese, butter, and whey exports. Subscribers can closely monitor 2018 dairy trends as they develop on Gro Intelligence.