U.S. Dairy Exports See Modest Gains as Global Cheese Demand Rises
Source: DairyNews.today
U.S. dairy exports improved slightly in August, driven primarily by rising global demand for cheese. According to the U.S. Dairy Export Council (USDEC), total export volume increased by 1.7% year over year, marking the first time in 2024 that year-to-date volumes have shown positive growth, albeit by less than 1%.
This marginal growth underscores the volatility seen in the sector, with export volumes fluctuating throughout the first eight months of 2024. Despite these ups and downs, the demand for U.S. cheese has continued to surge, benefiting from a strong global market that has experienced 10 consecutive months of growth, as reported by USDEC economists.
Cheese Exports Propel U.S. Performance
The increase in U.S. cheese exports was notable in August, with volume rising 15% year over year, representing a gain of 5,470 metric tons. Key markets showing significant increases include:
Despite relatively flat export volumes, U.S. dairy export value rose by 10% year over year in August, reaching $708 million — the highest monthly increase this year. This rise in export value was driven by strong commodity prices, particularly in cheese and protein-based products.
Challenges and Market Outlook
The year has been marked by several challenges for U.S. dairy exports, including inflationary pressures and increased competition from the European Union and New Zealand. In 2023, these factors contributed to lower U.S. exports. Additionally, fluctuations in China’s pig market and declining prices have tempered demand for certain U.S. whey products in recent months.
Looking ahead, USDEC economists note that while inflation in key markets has eased to near pre-pandemic levels, ongoing headwinds such as extreme climate events and geopolitical conflicts, particularly in the Middle East and Ukraine, continue to pose risks to global demand.
Year-to-Date Export Overview (through August 2024)
Cheese Exports Propel U.S. Performance
The increase in U.S. cheese exports was notable in August, with volume rising 15% year over year, representing a gain of 5,470 metric tons. Key markets showing significant increases include:
- Mexico: up 17% (2,256 MT)
- Middle East/North Africa: up 136% (1,245 MT)
- Southeast Asia: up 93% (870 MT)
- South America: up 43% (802 MT)
- Central America/Caribbean: up 13% (755 MT)
Despite relatively flat export volumes, U.S. dairy export value rose by 10% year over year in August, reaching $708 million — the highest monthly increase this year. This rise in export value was driven by strong commodity prices, particularly in cheese and protein-based products.
Challenges and Market Outlook
The year has been marked by several challenges for U.S. dairy exports, including inflationary pressures and increased competition from the European Union and New Zealand. In 2023, these factors contributed to lower U.S. exports. Additionally, fluctuations in China’s pig market and declining prices have tempered demand for certain U.S. whey products in recent months.
Looking ahead, USDEC economists note that while inflation in key markets has eased to near pre-pandemic levels, ongoing headwinds such as extreme climate events and geopolitical conflicts, particularly in the Middle East and Ukraine, continue to pose risks to global demand.
Year-to-Date Export Overview (through August 2024)
- Nonfat Dry Milk/Skim Milk Powder (NDM/SMP): 514,492 MT, down 8%
- Dry Whey Products: 401,192 MT, up 9%
- Cheese: 346,043 MT, up 21%
- Lactose: 282,920 MT, down 9%
- Whole Milk Powder (WMP): 17,364 MT, down 7%
- Butterfat: 27,554 MT, up 6%
- Milk Protein Concentrates (MPC): 28,903 MT, down 6%
- Infant Formula: 15,691 MT, down 20%
- Evaporated/Condensed Milk: 12,505 MT, up 12%
- Casein: 4,953 MT, up 144%
- Milk/Cream (liters): 101,392 MT, up 4%