U.S. Dairy Sector Welcomes Food for Peace Allocations Supporting Milk-Based Nutrition Aid

U.S. dairy leaders are welcoming a fresh round of Food for Peace funding that links American milk to one of the world’s most urgent needs: fighting hunger.

The U.S. Department of Agriculture’s (USDA) fiscal year 2025 Food for Peace allocations continue strong support for Ready-to-Use Supplementary Foods (RUSF), nutrient-rich products used to treat chronic malnutrition in vulnerable communities. A key ingredient in these foods is milk powder sourced from U.S. dairy farmers and processors, placing American dairy at the heart of global nutrition efforts.

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) praised the move, calling it a win for both humanitarian aid and the U.S. food system. The funding ensures that U.S. produced dairy ingredients remain central to international nutrition programs, while also creating steady demand for milk powders in non-traditional export markets.

“This funding strengthens demand for U.S. milk powders while helping deliver lifesaving nutrition to people who need it most,” said Gregg Doud, President and CEO of NMPF.

The announcement follows recent changes in how the ‘Food for Peace’ program is run. The USDA has taken over operational leadership from USAID, enabling large-scale purchases of U.S. agricultural goods. Nearly $452 million worth of American food commodities have already been committed for international aid, reinforcing the program’s focus on high-quality, U.S. origin products.

For the food and beverage sector, the development highlights how policy, nutrition, and trade can work together. Beyond feeding millions, the program raises the global profile of U.S. dairy, positioning milk-based nutrition as both a humanitarian solution and a growing economic opportunity.