Cheese Shines Amidst Dairy Export Challenges in March 2024
Source: The DairyNews
In April, the USDEC (U.S. Dairy Export Council) reported that despite a notable rise in cheese sales, the dairy industry faced setbacks due to declines in milk powder, lactose, and whey during March 2024.
Following a robust performance in February, U.S. dairy exports experienced a decline in March, marking a year-over-year (YOY) drop of 7% in milk solids equivalent (MSE) volume. This decrease occurred despite increased sales of U.S. cheese and gains in high-protein whey, milk protein concentrate, and whey permeate.
The first quarter of the year saw a 3.1% decline in year-to-date (YTD) U.S. MSE export volume compared to the previous year, with export value falling by 10% to slightly over $2 billion.
A notable highlight in March was the surge in U.S. cheese shipments, which increased by 20% to reach 50,022 MT, marking the first time the volume surpassed 50,000 MT in a single month. Particularly strong demand from Mexico contributed to this growth, with March shipments to Mexico increasing by 8%.
While Mexico remained a robust market for U.S. cheese, other regions also contributed to the overall success in March, including Japan, South Korea, the Middle East/North Africa (MENA), and the rest of Latin America.
In addition to cheese, U.S. exports of WPC80+ continued to perform well, with shipments increasing by 32% year-over-year. This growth was observed across various markets, including Japan, India, Southeast Asia, China, Canada, South Korea, and Brazil.
However, the performance of nonfat dry milk/skim milk powder (NFDM/SMP) was less successful in March, with shipments falling by 18%. While exports to Southeast Asia saw growth, sales to Mexico declined significantly.
Low-protein whey exports also experienced a decline in March, with shipments falling by 8% year-over-year. The decrease in demand from China played a significant role in this decline. However, there were some optimistic signs, including an increase in whey permeate demand for three consecutive months.
Overall, while the dairy industry faced challenges in March, particularly in milk powder, lactose, and whey exports, the strong performance of cheese and certain high-protein products offered some encouragement amidst the setbacks.
The first quarter of the year saw a 3.1% decline in year-to-date (YTD) U.S. MSE export volume compared to the previous year, with export value falling by 10% to slightly over $2 billion.
A notable highlight in March was the surge in U.S. cheese shipments, which increased by 20% to reach 50,022 MT, marking the first time the volume surpassed 50,000 MT in a single month. Particularly strong demand from Mexico contributed to this growth, with March shipments to Mexico increasing by 8%.
While Mexico remained a robust market for U.S. cheese, other regions also contributed to the overall success in March, including Japan, South Korea, the Middle East/North Africa (MENA), and the rest of Latin America.
In addition to cheese, U.S. exports of WPC80+ continued to perform well, with shipments increasing by 32% year-over-year. This growth was observed across various markets, including Japan, India, Southeast Asia, China, Canada, South Korea, and Brazil.
However, the performance of nonfat dry milk/skim milk powder (NFDM/SMP) was less successful in March, with shipments falling by 18%. While exports to Southeast Asia saw growth, sales to Mexico declined significantly.
Low-protein whey exports also experienced a decline in March, with shipments falling by 8% year-over-year. The decrease in demand from China played a significant role in this decline. However, there were some optimistic signs, including an increase in whey permeate demand for three consecutive months.
Overall, while the dairy industry faced challenges in March, particularly in milk powder, lactose, and whey exports, the strong performance of cheese and certain high-protein products offered some encouragement amidst the setbacks.
