In a significant win for American dairy farmers, the U.S. Department of Agriculture (USDA) announced on May 28, 2025, that Costa Rica has approved the first U.S. dairy facility for export under a new streamlined registration process. This milestone opens the door to a $130 million market, providing U.S. dairy producers with expanded opportunities to meet growing demand in Central America. The move is part of the Trump Administration’s broader efforts to reduce non-tariff trade barriers and boost market access for American agricultural products.
A Breakthrough for U.S. Dairy Exports
Costa Rica’s National Animal Health Service (SENASA) officially greenlit the first U.S. dairy cooperative for export on May 22, 2025, marking a pivotal moment for the U.S. dairy industry. This approval, facilitated by the USDA’s Foreign Agricultural Service (FAS) in collaboration with SENASA, replaces a previously cumbersome registration process with a more efficient system. The streamlined procedure is expected to make it easier for U.S. dairy facilities to register and export products like milk, cheese, yogurt, and industrial dairy ingredients such as whey, casein, butter oil, and sweet cream.
The announcement comes at a critical time for U.S. dairy producers, who have faced challenges from fluctuating global demand and trade barriers. In 2024, Costa Rica imported $60 million worth of U.S. dairy products, and this new agreement is projected to significantly increase that figure by tapping into a $130 million market opportunity. “Securing greater market access for American dairy farmers is a much-needed win for the U.S. dairy industry,” said USDA Secretary Brooke Rollins in a statement. “This will give our producers better access to a growing market in Costa Rica, and we look forward to more wins to come.”
Why Costa Rica Matters for U.S. Dairy
Costa Rica represents a promising market for U.S. dairy exporters due to its strong economy, expanding middle class, and increasing demand for high-quality dairy products. The Central American nation has become a key trading partner under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), which eliminated all dairy tariffs in 2025, creating a favorable environment for U.S. exporters. The streamlined registration process further enhances these opportunities by reducing bureaucratic hurdles and ensuring that U.S. dairy products can reach Costa Rican consumers more efficiently.
The approval of the first U.S. dairy facility is a testament to years of collaboration between the USDA, the U.S. Dairy Export Council (USDEC), the National Milk Producers Federation (NMPF), the Food and Drug Administration (FDA), and the U.S. Trade Representative’s Office (USTR). “This breakthrough cements Costa Rica as an excellent trading partner,” said Gregg Doud, president and CEO of NMPF. “The zero-tariff trading conditions under CAFTA-DR, combined with this simplified process, create a bright future for U.S. dairy exports.”
The Impact on American Dairy Farmers
The U.S. dairy industry has been a powerhouse in global markets, with exports reaching a record $8.2 billion in 2024, the second-highest total ever recorded. Central American markets, including Costa Rica, Guatemala, and El Salvador, have shown significant growth, with record imports of U.S. dairy products last year. The approval of the first U.S. dairy facility in Costa Rica is expected to build on this momentum, offering farmers a stable and lucrative market to offset declines in other regions, such as China, where exports fell to their lowest level since 2020.
For American dairy farmers, this development means more than just increased revenue. It represents job creation, economic stability in rural communities, and a chance to showcase the quality and innovation of U.S. dairy products. From creamy cheeses to nutrient-rich milk powders, U.S. dairy producers are well-positioned to meet the preferences of Costa Rican consumers, who value high-quality, affordable, and nutritious products. “Consumers around the world continue to demand more U.S. dairy because we provide an assortment of delicious, nutritious, and affordable products,” said Michael Dykes, president and CEO of the International Dairy Foods Association (IDFA).
Streamlining the Process: A Game-Changer
Before this agreement, U.S. dairy exporters faced a lengthy and complex registration process to gain access to the Costa Rican market. Facilities had to navigate detailed questionnaires and inspections, which could delay exports and increase costs. The new streamlined process, finalized after extensive negotiations and a 2024 SENASA visit to evaluate U.S. dairy oversight, simplifies these requirements. Now, U.S. facilities can register more quickly, reducing the risk of product detentions at Costa Rican ports—a critical improvement for perishable goods like dairy.
This change is particularly important for exporters of industrial dairy ingredients, which previously followed a different registration process. Under the new system, all U.S. dairy products, including whey, casein, and butter oil, must come from registered facilities to avoid rejection or delays. The USDA has released detailed guidance to help producers and exporters navigate the new requirements, ensuring a smooth transition.
Broader Implications for U.S. Agriculture
The Costa Rica dairy agreement is part of a larger push by the Trump Administration to expand market access for American agricultural products. In recent months, the USDA’s FAS has secured other trade wins, including a 50 percent tariff reduction on U.S. bourbon imports to India, expected to boost exports by $2 million in 2025. These efforts reflect a commitment to breaking down non-tariff barriers and opening new markets for U.S. farmers and ranchers.
Costa Rica’s growing population and thriving tourism industry further enhance its appeal as a market for U.S. agricultural products. With a population of 5.2 million in 2023 and a projected increase to 5.5 million by 2030, the country’s demand for consumer-oriented products like dairy, beef, and processed foods is on the rise.
Challenges and Opportunities Ahead
While the approval of the first U.S. dairy facility is a major step forward, challenges remain. Costa Rican producers are competitive in dairy, meats, and other agricultural products, and U.S. exporters face competition from regional suppliers in Central and South America. Additionally, Chinese black beans and other imported goods compete on price, making it essential for U.S. producers to highlight the quality and innovation of their products.
However, the opportunities outweigh the challenges. Costa Rica’s growing middle class and openness to U.S. brands create a fertile ground for dairy exports. The success of this agreement could pave the way for more U.S. facilities to register, further expanding market share.
Looking Forward
The USDA’s announcement marks a turning point for U.S. dairy exporters, offering a foothold in a dynamic and growing market. As more facilities register under the streamlined process, the U.S. dairy industry is poised to strengthen its position in Central America and beyond. This trade win not only boosts economic prospects for American farmers but also reinforces the importance of international partnerships in fostering agricultural growth.
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