Latin America Powers U.S. Dairy Export Growth in September
Source: DairyNews.today
Strong demand from Latin America propelled U.S. dairy export gains in September, with shipments to the region rising to 78,430 metric tons (MT) in milk solids equivalent (MSE)—a 17% year-over-year (YOY) increase, the U.S. Dairy Export Council (USDEC) reported.
Latin America accounted for 41% of U.S. dairy exports in September, up from 38% a year ago, reflecting the region’s growing importance as a key market for U.S. suppliers.
Mexico's Demand Bolsters U.S. Export Growth
Mexico continued to drive U.S. export momentum with a sharp 23% YOY increase in September, contributing an additional 10,641 MT to U.S. export totals. Mexico’s share of total U.S. dairy exports surged to 29%, with demand pivoting back to milk powder products after a cheese-heavy first half of the year. Nonfat dry milk/skim milk powder (NFDM/SMP) exports to Mexico jumped 23% YOY, the largest gain since May 2023, while cheese exports, though slightly lower than recent record highs, still rose 19%.
In addition to milk powder and cheese, other product categories also experienced strong growth in Mexico. Butterfat exports soared nearly fourfold (+277%), while lactose, milk protein concentrate (MPC), dry whey, and high-protein whey shipments increased 26%, 45%, 67%, and 90% YOY, respectively.
The resilience of U.S. exports to Mexico is notable given recent macroeconomic pressures, including a depreciating peso and slowing economic activity. Although these factors have yet to impede U.S. exports, they could weigh on growth if economic uncertainty persists.
Steady Gains Across Central America and the Caribbean
In Central America and the Caribbean, U.S. dairy exports rose 5% YOY in September, led by robust cheese sales, which climbed 29%. Cheese demand was particularly strong in Guatemala (+24%) and the Dominican Republic (+26%). However, other categories underperformed; NFDM/SMP shipments declined 3%, and low-protein whey exports fell 28%, as buyers shifted focus to higher-value products.
South America: Cheese Drives Growth Amid Mixed Whey Demand
South America posted a 4% YOY increase in U.S. dairy imports in September, with cheese once again leading the charge. U.S. cheese exports to South America surged 60%, bolstered by strong demand in Chile (+49%), Colombia (+96%), and Peru (+89%).
Demand for low-protein whey products held steady in the region (+10%), but high-protein whey exports slipped 12%, as some buyers, notably in Brazil, pulled back on purchases amid rising prices. WPC80+ shipments to Brazil fell 16% in September, marking a second consecutive monthly decline, though YTD exports remain 11% above 2023 levels.
While Latin American demand remains robust, economic headwinds—particularly in Mexico—present a potential risk to U.S. dairy exports. The sustained demand for key products such as NFDM/SMP and cheese underscores the region’s role in offsetting weakened demand in other markets, particularly China.
Mexico's Demand Bolsters U.S. Export Growth
Mexico continued to drive U.S. export momentum with a sharp 23% YOY increase in September, contributing an additional 10,641 MT to U.S. export totals. Mexico’s share of total U.S. dairy exports surged to 29%, with demand pivoting back to milk powder products after a cheese-heavy first half of the year. Nonfat dry milk/skim milk powder (NFDM/SMP) exports to Mexico jumped 23% YOY, the largest gain since May 2023, while cheese exports, though slightly lower than recent record highs, still rose 19%.
In addition to milk powder and cheese, other product categories also experienced strong growth in Mexico. Butterfat exports soared nearly fourfold (+277%), while lactose, milk protein concentrate (MPC), dry whey, and high-protein whey shipments increased 26%, 45%, 67%, and 90% YOY, respectively.
The resilience of U.S. exports to Mexico is notable given recent macroeconomic pressures, including a depreciating peso and slowing economic activity. Although these factors have yet to impede U.S. exports, they could weigh on growth if economic uncertainty persists.
Steady Gains Across Central America and the Caribbean
In Central America and the Caribbean, U.S. dairy exports rose 5% YOY in September, led by robust cheese sales, which climbed 29%. Cheese demand was particularly strong in Guatemala (+24%) and the Dominican Republic (+26%). However, other categories underperformed; NFDM/SMP shipments declined 3%, and low-protein whey exports fell 28%, as buyers shifted focus to higher-value products.
South America: Cheese Drives Growth Amid Mixed Whey Demand
South America posted a 4% YOY increase in U.S. dairy imports in September, with cheese once again leading the charge. U.S. cheese exports to South America surged 60%, bolstered by strong demand in Chile (+49%), Colombia (+96%), and Peru (+89%).
Demand for low-protein whey products held steady in the region (+10%), but high-protein whey exports slipped 12%, as some buyers, notably in Brazil, pulled back on purchases amid rising prices. WPC80+ shipments to Brazil fell 16% in September, marking a second consecutive monthly decline, though YTD exports remain 11% above 2023 levels.
While Latin American demand remains robust, economic headwinds—particularly in Mexico—present a potential risk to U.S. dairy exports. The sustained demand for key products such as NFDM/SMP and cheese underscores the region’s role in offsetting weakened demand in other markets, particularly China.
