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Investing in America: Cheese helps lead the next chapter

Michael Dykes

Michael Dykes, president and CEO of the International Dairy Foods Association, contributes this column bimonthly for Cheese Market News®.

October is National Manufacturing Month, an opportunity to recognize the people, businesses and communities behind American manufacturing. For U.S. dairy, the next chapter of growth is already taking shape, and cheese is helping lead the way.

The International Dairy Foods Association (IDFA) is tracking more than $15 billion in planned or recently completed investments in dairy processing. Across more than 85 projects in 23 states, companies are building new plants, expanding existing facilities and modernizing production lines. At least 30 projects involve cheese manufacturing, conversion, packaging or distribution, representing at least $3.76 billion in cheese-related investment.

Three priorities will be critical to sustaining this investment and dairy’s future growth: growing demand, promoting dairy’s health and wellness benefits, and innovation. Together, these priorities can help the industry expand markets, strengthen consumer understanding of dairy’s nutritional value and develop products that meet evolving needs in the U.S. and around the world.

Demand for dairy is growing. Per-capita cheese consumption in the U.S. has doubled over the past 50 years, contributing to record overall dairy consumption. Increasing consumer interest in protein and nutrient-dense foods creates opportunities for cheese, cottage cheese and dairy ingredients. Continued efforts to communicate dairy’s nutritional value will be vital to building on that demand and ensuring consumers understand the important role dairy products can play in nutritious diets.

This demand is seen beyond our borders, too. Dairy export value has roughly doubled over the past decade, and cheese export value is up 10% this year compared with last year. Promoting the nutritional benefits and versatility of U.S. dairy products, building customer relationships and expanding market access can help manufacturers continue to serve growing international markets.

Innovation will be essential to sustaining this growth. Advances in processing technology and ingredient development are creating opportunities to unlock greater value from milk and its components. Investments in whey and other dairy ingredients are expanding the value generated through cheesemaking. New technologies and applications can also help manufacturers find new uses for milk and its components, creating products that respond to growing demand and evolving consumer preferences around the world.

These investments deliver economic benefits well beyond the factory floor. New and expanded facilities generate construction activity, demand for equipment and services, and manufacturing jobs. Once operational, these facilities support lasting relationships among dairy farmers, processors, employees, transportation providers and businesses in surrounding communities. Additional processing capacity creates more opportunities for farmers’ milk while giving manufacturers greater flexibility to respond to changing demand and develop products for new markets.

Dairy’s growth is part of a larger American manufacturing story. Food manufacturing employs nearly 1.8 million Americans, more than any other manufacturing sector, and is projected to add approximately 84,000 jobs between 2025 and 2035. Dairy manufacturing employment is projected to grow 5.6% through 2035.

From cooperatives and family-owned businesses to specialty cheesemakers and large-scale processors, companies across the industry are committing capital to the future. Their investments reflect confidence in U.S. dairy, American workers and the communities where these businesses operate.

During National Manufacturing Month, we recognize not only the dairy products made in America, but also the dairy farmers, skilled workforce, technology and long-term business commitments that make them possible.

The investments being made today are building the capacity and capabilities America’s cheesemakers need to serve consumers, create economic opportunity and compete around the world for decades to come. The next chapter of American dairy manufacturing is already taking shape, and cheese is helping lead the way.

CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily reflect those of Cheese Market News®.

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