U.S. Butterfat Exports See Significant Gains Despite High Domestic Prices
Source: The DairyNews
The U.S. Dairy Export Council (USDEC) has reported remarkable growth in U.S. butterfat exports, demonstrating the sector's ability to penetrate international markets even amidst elevated domestic prices.
In June, butterfat exports surged by 80%, adding 2,071 metric tons compared to the same month last year. This impressive increase was largely driven by a substantial rise in anhydrous milkfat (AMF) exports, which saw a 490% year-over-year (YOY) jump, amounting to an additional 1,330 metric tons.
June's strong performance has contributed to a 41% increase in AMF exports during the first half of 2024, adding 1,276 metric tons to the YTD totals. The sustained demand for AMF from Central America and the Caribbean has been a key factor in this growth. In June, shipments to this region reached 548 metric tons, marking the highest volume since February 2022 and the third-largest monthly volume on record. This exceptional performance has driven a tenfold increase in YTD exports to the region, with a 924% rise, equivalent to an additional 791 metric tons. This region alone accounted for more than half of the total increase in AMF exports during the first six months of the year.
Mexico also contributed to the strong performance of AMF exports in June, with volumes increasing by 472 metric tons, a staggering 1,345% rise compared to the same month last year. However, earlier challenges in the year led to a 26% decline in YTD volume, amounting to a reduction of 310 metric tons.
Butter exports also experienced a significant uptick in June, with volumes increasing by 32%, or 741 metric tons, compared to the previous year. Despite this robust monthly performance, the cumulative YTD butter exports remain 12% lower than last year, with a deficit of 2,023 metric tons.
Canada has emerged as a key player in the butter trade, with strong demand driving U.S. exports to the country. In June, butter exports to Canada increased by 49%, adding 773 metric tons, bringing the total to 2,339 metric tons. This figure represents the second-highest volume of U.S. butter exports to Canada, surpassed only by the record 2,865 metric tons shipped in March 2022. Additionally, U.S. AMF exports to Canada rose by 166%, or 514 metric tons, YOY in June, indicating that Canadian buyers were facing a shortage of fat supplies.
June's strong performance has contributed to a 41% increase in AMF exports during the first half of 2024, adding 1,276 metric tons to the YTD totals. The sustained demand for AMF from Central America and the Caribbean has been a key factor in this growth. In June, shipments to this region reached 548 metric tons, marking the highest volume since February 2022 and the third-largest monthly volume on record. This exceptional performance has driven a tenfold increase in YTD exports to the region, with a 924% rise, equivalent to an additional 791 metric tons. This region alone accounted for more than half of the total increase in AMF exports during the first six months of the year.
Mexico also contributed to the strong performance of AMF exports in June, with volumes increasing by 472 metric tons, a staggering 1,345% rise compared to the same month last year. However, earlier challenges in the year led to a 26% decline in YTD volume, amounting to a reduction of 310 metric tons.
Butter exports also experienced a significant uptick in June, with volumes increasing by 32%, or 741 metric tons, compared to the previous year. Despite this robust monthly performance, the cumulative YTD butter exports remain 12% lower than last year, with a deficit of 2,023 metric tons.
Canada has emerged as a key player in the butter trade, with strong demand driving U.S. exports to the country. In June, butter exports to Canada increased by 49%, adding 773 metric tons, bringing the total to 2,339 metric tons. This figure represents the second-highest volume of U.S. butter exports to Canada, surpassed only by the record 2,865 metric tons shipped in March 2022. Additionally, U.S. AMF exports to Canada rose by 166%, or 514 metric tons, YOY in June, indicating that Canadian buyers were facing a shortage of fat supplies.
