Surge in Mexican Demand Boosts U.S. Dairy Exports Amid Economic and Political Shifts
Source: The DairyNews
Mexican demand continues to significantly bolster U.S. dairy exports, with April shipments soaring to 55,478 metric tons of milk solids equivalent (MSE), a 13% increase. This marks the largest year-over-year gain since last June and represents a notable recovery from March’s 24% decline, primarily due to decreased milk powder exports.
The surge in dairy exports to Mexico was widespread across various product categories, USDEC reported. Cheese exports were particularly strong, setting a new record with volumes reaching 17,249 metric tons, a 53% increase. Notable rises were also seen in "other cheese" categories, such as cheddar and gouda, which soared by 73%, while shredded cheeses increased by 43%.
Other dairy products also showed robust growth; butter exports more than doubled to 169 metric tons, and low-protein whey shipments, including dry whey and permeate, surged by 79%. Although nonfat dry milk volumes were down for the eighth consecutive month, the 2% decline was the smallest since the downtrend began late last year.
The robust performance in Mexican dairy demand has been supported by a strong local economy and competitive U.S. prices. However, recent political events, including last week’s election, have introduced some volatility, with the peso losing 4% against the dollar immediately following the election. Despite this, the peso remains stronger relative to pre-pandemic levels against the dollar, keeping Mexican markets relatively stable compared to other importing regions.
Looking forward, the recent increase in U.S. dairy prices may temper Mexican enthusiasm for certain products. Much of the cheese exported in April was ordered months earlier at lower prices. As cheese prices continue to rise, demand may shift slightly towards nonfat dry milk, potentially influencing how it is utilized in local cheese production.
Other dairy products also showed robust growth; butter exports more than doubled to 169 metric tons, and low-protein whey shipments, including dry whey and permeate, surged by 79%. Although nonfat dry milk volumes were down for the eighth consecutive month, the 2% decline was the smallest since the downtrend began late last year.
The robust performance in Mexican dairy demand has been supported by a strong local economy and competitive U.S. prices. However, recent political events, including last week’s election, have introduced some volatility, with the peso losing 4% against the dollar immediately following the election. Despite this, the peso remains stronger relative to pre-pandemic levels against the dollar, keeping Mexican markets relatively stable compared to other importing regions.
Looking forward, the recent increase in U.S. dairy prices may temper Mexican enthusiasm for certain products. Much of the cheese exported in April was ordered months earlier at lower prices. As cheese prices continue to rise, demand may shift slightly towards nonfat dry milk, potentially influencing how it is utilized in local cheese production.
