U.S. Anticipates 11% Surge in Skim Milk Powder Production in 2024
Source: The DairyNews
The United States is poised for an 11% increase in skim milk powder output, reaching 1.30 million tons in 2024, propelled by elevated milk production and ample supplies of skim milk for drying, as outlined in a recent report from the U.S. Department of Agriculture (USDA) Global Agricultural Information Network (GAIN).
Projections also indicate a 3% growth in exports, totaling 838,000 tons. This rebound comes after a modest decline in exports during 2023 and is attributed to larger exportable supplies and a resurgence in shipments to price-sensitive markets in East and Southeast Asia.
The competitive landscape is expected to favor U.S. exports in 2024 as the gap between U.S. and EU prices narrows, reaching parity. In November 2023, EU skim milk powder prices stood at $1.36/pound FOB, while the U.S. price for Western low-medium heat NDM FOB was quoted at $1.21/pound.
Further contributing to the advantage of U.S. exports, forecasted shifts in exchange rates are anticipated in 2024. The expected interest rate cut by the U.S. Federal Reserve is projected to enhance purchasing power for U.S. dairy commodities, particularly amid global economic uncertainties.
The competitive landscape is expected to favor U.S. exports in 2024 as the gap between U.S. and EU prices narrows, reaching parity. In November 2023, EU skim milk powder prices stood at $1.36/pound FOB, while the U.S. price for Western low-medium heat NDM FOB was quoted at $1.21/pound.
Further contributing to the advantage of U.S. exports, forecasted shifts in exchange rates are anticipated in 2024. The expected interest rate cut by the U.S. Federal Reserve is projected to enhance purchasing power for U.S. dairy commodities, particularly amid global economic uncertainties.
