U.S. Dairy Exports Surge as Global Economic Recovery Bolsters Demand
Source: The DairyNews
The U.S. dairy industry is witnessing a significant upswing in exports, buoyed by robust economic performance in key international markets. Monica Ganley, an analyst with the Daily Dairy Report and principal of Quarterra, underscores the pivotal role of overseas demand in driving the sector's growth, with 18% of the U.S. milk supply now being sent abroad as dairy products.
In February, U.S. dairy exports surpassed prior-year levels for the first time in a year, reaching a milestone of 501.1 million pounds. Notably, this marks the first instance of dairy exports exceeding 500 million pounds in February, highlighting the sector's resilience and competitiveness on the global stage.
Strong cheese shipments have emerged as a driving force behind the surge in overall exports, with Mexico's burgeoning appetite for U.S. cheese contributing significantly to the uptick. Lower prices at the CME have further enhanced the competitiveness of U.S. cheese in international markets, bolstering sales volumes.
The momentum extends beyond cheese, with nonfat dry milk (NDM) exports witnessing a notable increase in February, driven by heightened demand from Southeast Asian markets. While exports to Indonesia and Vietnam surged, Mexico's NDM demand experienced a slight decline compared to the previous year.
Similarly, U.S. whey exports have seen an uptick across all destinations, reflecting growing demand for high-protein products. However, challenges persist in China's pork industry, impacting dry whey exports to the country.
On the flip side, China's renewed buying of New Zealand dairy products, coupled with positive economic indicators, underscores the dynamic nature of global dairy trade. Despite these positive trends, U.S. butter exports faced headwinds in February due to persistently high domestic prices, resulting in a decline compared to the previous year.
As international markets continue to recover from the impacts of the COVID-19 pandemic, the U.S. dairy industry remains well-positioned to capitalize on emerging opportunities, driven by robust demand and strategic market diversification.
Strong cheese shipments have emerged as a driving force behind the surge in overall exports, with Mexico's burgeoning appetite for U.S. cheese contributing significantly to the uptick. Lower prices at the CME have further enhanced the competitiveness of U.S. cheese in international markets, bolstering sales volumes.
The momentum extends beyond cheese, with nonfat dry milk (NDM) exports witnessing a notable increase in February, driven by heightened demand from Southeast Asian markets. While exports to Indonesia and Vietnam surged, Mexico's NDM demand experienced a slight decline compared to the previous year.
Similarly, U.S. whey exports have seen an uptick across all destinations, reflecting growing demand for high-protein products. However, challenges persist in China's pork industry, impacting dry whey exports to the country.
On the flip side, China's renewed buying of New Zealand dairy products, coupled with positive economic indicators, underscores the dynamic nature of global dairy trade. Despite these positive trends, U.S. butter exports faced headwinds in February due to persistently high domestic prices, resulting in a decline compared to the previous year.
As international markets continue to recover from the impacts of the COVID-19 pandemic, the U.S. dairy industry remains well-positioned to capitalize on emerging opportunities, driven by robust demand and strategic market diversification.
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