Dairy Product Manufacturers NAICS 3115

Jun 23, 2025 - Aging Infrastructure

• Aging food processing infrastructure – some dating back more than half a century – poses risks for food manufacturers, especially producers of perishable products that must move swiftly through the system to preserve freshness and quality, Food Processing (FP) reports. Older equipment is more likely to break down, interrupting production and potentially leading to product loss and unexpected replacement costs. FP notes that while processing plants have scaled up production and adopted more advanced technologies, underlying systems have struggled to keep up, resulting in a growing mismatch between modern operational demands and aging physical assets. Moreover, many aging plants may not be equipped to handle growing demand and regulatory scrutiny due to lack of capital investment over the years. Because environmental, safety and building codes have evolved since many food processing plants were built, replacement costs can be substantial, according to FP.
• Dairy products are among the 740 US farm products now subject to additional import duties after retaliatory measures by China in response to US-imposed tariffs went into effect in March, according to Dairy Reporter. The new tariffs were levied on top of the current applicable tariff rates. A total of 26 dairy products are subject to the 10% levy including milk and cream, butter, buttermilk, yogurt, dairy spreads, fresh and processed cheese, ice cream, casein, and more. The duties apply to products shipped from the US after March 10 and arriving in China after April 12, according to DR. New data from the US Dairy Export Council shows US dairy export value continues to climb this year after posting near-record exports in 2024. In January, US dairy export value rose 20% year over year to a record $714 million, with almost all commodities showing gains.

• The US dairy products industry posted a near-record year for exports in 2024, with foreign trade reaching $8.2 billion – the second-highest total export value ever and a $223 million year-over-year increase, according to new USDA data. Mexico and Canada – tariff targets of the Trump administration – were the top destinations for US dairy exports last year, representing more than 40% of US dairy exports. Mexico and Canada imported record values of dairy at $2.47 billion and $1.14 billion, respectively, according to the USDA. US dairy exports have nearly tripled since the early 2000s and the US became the world’s third-largest dairy product exporter behind New Zealand and the European Union, according to the International Dairy Foods Association. Roughly 18% of all US dairy production is exported. In early February, President Trump agreed to pause tariffs on Canada and Mexico for 30 days, with the deadline looming next month.
• Producer prices for dairy products manufacturers were flat in May compared to a year ago after rising 2.9% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Retail prices for dairy and related products rose 1.7% year over year in May but dipped 0.1% from April. The price of milk rose 3.3% for the month on an annual basis, according to the BLS's Consumer Price Index. Prices for dairy products are predicted to fall 0.8% this year. Employment by the industry rose 2.4% YoY in April while the average industry wage climbed 4.9% over the same period to $29.22 per hour, pennies shy of its peak in February, BLS data show.