U.S. Dairy Industry Eyes $11 Billion in Processing Power by 2026

*This article summarizes key insights from a recent Dairy Herd Management report. [Read the full article at Dairy Herd Management →](https://www.dairyherd.com/news/business/dairys-ambitious-future-11-billion-2026-and-global-supremacy)* --- The U.S. dairy industry is at an inflection point. During the recent Joint Annual Meeting hosted by the National Milk Producers Federation (NMPF), the National Dairy Board, and the United Dairy Industry Association in Arlington, Texas, Gregg Doud—president and CEO of NMPF—painted a picture of unprecedented growth and global ambition for American dairy. ## A Bold Vision: $11 Billion by 2026 Doud's keynote address centered on a commanding projection: the U.S. dairy processing sector is expected to reach **$11 billion in capacity by 2026**. But this isn't just about impressive numbers on a balance sheet. As [Dairy Herd Management reports](https://www.dairyherd.com/news/business/dairys-ambitious-future-11-billion-2026-and-global-supremacy), Doud sees this expansion as positioning the United States to compete directly with traditional dairy powerhouses like New Zealand and Europe for global market supremacy. "When I look at this chart, I look at this is our ability to be globally competitive," Doud told attendees, according to the [original Dairy Herd article](https://www.dairyherd.com/news/business/dairys-ambitious-future-11-billion-2026-and-global-supremacy). ## Export Excellence: 18% and Rising A critical component of this vision is export performance. The U.S. dairy industry currently exports 18% of its production—a figure that represents both achievement and opportunity. Industry leaders are optimistic about pushing toward record-breaking dairy exports in the coming years. "I love where we are in this industry," Doud stated during his presentation. "Right now, we are right where we want to be." ## Strategic Trade Positioning Maintaining global competitiveness requires more than just production capacity—it demands strategic trade relationships. Doud celebrated recent bipartisan legislative achievements, including tax reforms that have strengthened the U.S. position in international markets. Particularly noteworthy are emerging trade opportunities with Southeast Asian countries. As noted in the [Dairy Herd Management coverage](https://www.dairyherd.com/news/business/dairys-ambitious-future-11-billion-2026-and-global-supremacy), these strategic partnerships could open unprecedented avenues for American dairy exports in markets bordering China. "Think about where the president was recently—those are all the countries that border China," Doud explained, highlighting the geopolitical significance of these trade relationships. "Having the opportunity to have duty free access into Southeast Asia is something that we wanted across all of agriculture, and in particular in the dairy industry for a long, long time." ## Persistent Challenges: Labor and Legislation Despite the optimistic growth trajectory, Doud didn't shy away from addressing persistent industry challenges. Two issues remain particularly pressing: ### School Milk Programs The challenge of securing milk in schools continues to be a complex political battleground. While progress has been made through bipartisan cooperation, the path forward requires continued advocacy and legislative wins. ### Farm Labor Shortages Perhaps most critical is the ongoing farm labor shortage. Doud characterized this as the dairy industry's number one issue, emphasizing that daily operations cannot wait for political cycles to resolve. "We're kind of in no man's land here on this topic of farm labor," Doud stated, according to the [Dairy Herd report](https://www.dairyherd.com/news/business/dairys-ambitious-future-11-billion-2026-and-global-supremacy). "I think we need to remind our elected officials that we've got to milk the cows every day. We don't have time to wait for the inconvenience of an election to get things done in Washington." ## Family Legacy and Industry Leadership The conference also featured Brian Rexing, a fourth-generation dairy farmer, who shared personal insights about family legacy and the future of dairy farming. His remarks underscored the industry's deep roots in multi-generational agricultural traditions while emphasizing the need for innovation and modernization. Industry leaders also recognized key contributors to recent advancements, including Chris Galen, NMPF senior vice president of member services and governance, and Paul Bleiberg, NMPF executive vice president of government relations. Their efforts have been instrumental in navigating the complex landscape of trade policy, legislative advocacy, and industry coordination. ## Looking Ahead: Momentum and Opportunity The message from Arlington was clear: the U.S. dairy industry is not merely responding to market conditions—it's actively shaping its future. The combination of strategic planning, legislative advocacy, trade development, and operational innovation reflects an industry that is both resilient and proactive. As farmers, processors, and industry organizations align around shared goals, the $11 billion processing capacity target for 2026 represents more than infrastructure investment. It symbolizes American dairy's commitment to feeding both domestic and international markets while maintaining the family farm traditions that have defined the industry for generations. --- **Original Source Attribution:** This article summarizes reporting by Karen Bohnert for Dairy Herd Management, published November 24, 2025. **[Read the complete article at Dairy Herd Management →](https://www.dairyherd.com/news/business/dairys-ambitious-future-11-billion-2026-and-global-supremacy)** **Related Coverage from Dairy Herd Management:** - [Driving Results for U.S. Dairy: A Journey of Innovation and Trust](https://www.dairyherd.com/news/business/driving-results-u-s-dairy-journey-innovation-and-trust) - [Whole Milk Returns? Unanimous Senate Vote a Big Win for Schools and Dairy](https://www.dairyherd.com/news/policy/whole-milk-returns-unanimous-senate-vote-big-win-schools-and-dairy) --- *The Therio Education Center provides expert insights and industry analysis for dairy farmers. 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