WASHINGTON, D.C. – The International Dairy Foods Association (IDFA) has launched its new initiative, Project Diversify, which officials said is designed to identify high-growth global markets, and expand U.S. dairy export opportunities. The initiative began May 1.

“Market diversification is central to the future of U.S. dairy exports, opening new avenues for growth, expanding global reach, and ensuring American dairy remains competitive in an evolving global marketplace,” said Michael Dykes, DVM, IDFA president and CEO.

According to IDFA, U.S. dairy exports reached nearly $9.51 billion in 2025, a 15 percent increase over the previous year, underscoring the industry’s expanding global footprint and rising international demand for American dairy products.

Officials said Project Diversify builds on this momentum by helping exporters target the next generation of growth markets and strengthen long-term market expansion strategies: “A diversified export and trade strategy that includes both market and product expansion creates opportunity, and positions the industry for continued growth,” Dykes said.

Officials added that its inaugural report applies a consistent framework for evaluating new markets based on demand growth, import reliance, market stability, trade dynamics and regulatory environment. The initiative also reflects a broader effort by IDFA to equip exporters with actionable insights and tools to support more strategic, resilient global expansion.

In addition to the data-backed guidance, officials said Project Diversify will expand over time to include interactive tools that allow users to explore emerging and high-potential markets across regions and product categories.

Becky Rasdall Vargas, IDFA senior vice president, trade, and workforce policy, told Farm World U.S. dairy exports have been growing steadily for more than two decades, becoming an increasingly important part of the industry and a larger share of how U.S. milk production is utilized – while at the same time, that growth has been concentrated in a relatively small number of key markets.

“Over the last year, disruptions in other sectors like soy, where exports to China dropped off sharply, really highlighted the need for greater diversification,” she said. “IDFA developed Project Diversify in consultation with our members and the U.S. government to take a more strategic, data-driven approach to identifying new markets, and broadening the industry’s export footprint, while also supporting U.S. negotiations.”

She added, “When we look at new markets, U.S. exporters need basic thresholds in place. For instance, reliable transportation methods, import demand and population size. We look at those factors and standardize the metrics across all markets to create a clearer picture for U.S. dairy exporters when evaluating markets, as well as for U.S. negotiators when engaging in negotiations with foreign markets.” 

She said Project Diversify applies that consistent, data-driven framework across different global markets to evaluate those factors, which include demand growth, import needs, market stability, regulatory environment and trade dynamics: “Collectively, this gives U.S. dairy exporters and policymakers a clearer view of where the strongest opportunity is for growth and diversification.”

In this first report, she said IDFA looked at the 16 countries that make up western Africa, evaluating each market using both quantitative and qualitative indicators: “The analysis revealed particularly strong demand growth and import needs in Nigeria, with Côte d’Ivoire and Senegal also emerging as leading markets, showing where U.S. dairy might grow next. We intend to expand our reporting to other regions in the months ahead.”

She added that identifying markets with strong demand and import needs can help position U.S. dairy for long term growth. “Project Diversify applies a consistent, data-backed framework to identify where diversification opportunities are strongest. We look forward to working with our members and policymakers to turn those insights into strategic action.”