USA: Dairy Product Exports Fall 5% in February

The U.S. dairy industry faced a challenging month in February as exports fell by 5%, largely due to declining sales of nonfat dry milk/skim milk powder (NFDM/SMP) and whey products. Notably, NFDM/SMP, despite being the country's top exported dairy product, experienced a significant drop of 26%, driven by a 53% decrease in exports to Southeast Asia. This decline reflects price discrepancies between U.S. and global markets.

While cheese exports rose by 7% in milk solid equivalents, hitting an all-time sales record, it could not offset the overall downturn. The U.S. Dairy Export Council attributes the export market fluctuations to competitive global pricing and the ongoing trade tensions exacerbated by tariffs under President Trump's administration.

Conversely, there were bright spots in different sectors: exports of dairy embryos surged by 74% from January, and dairy heifer replacements climbed by 80% month-over-month. However, hay exports experienced a downturn, with notable declines to major Asia-Pacific buyers, except Taiwan.

The industry is navigating these complexities while the National Milk Producers Federation revamps its export assistance program, Cooperatives Working Together (CWT), to NMPF Exports and Trade (NEXT). The initiative aims to tackle market access challenges and competitive disadvantages, particularly in Asia and Middle Eastern markets, with strategic changes slated for implementation by June.