U.S. Dairy Exports Post Strong Gains in July

Butterfat exports also achieved historic numbers, with a total of 8,395 metric tons, marking the largest monthly volume in over a decade. This included a record shipment to Australia and substantial growth in the Middle Eastern and North African markets. Anhydrous milkfat exports experienced a 91% year-over-year increase, underscoring the sector's robust performance.
Other Dairy Products Performance
- Reduced-protein whey exports increased by 9% YoY, primarily due to the strong markets in Mexico and Southeast Asia.
- Lactose exports saw a 9% uptick, supported by recovering demand from China.
Contrastingly, nonfat dry milk (NFDM) and skim milk powder (SMP) experienced a decline as domestic supply constraints limited exports. Southeast Asia, in particular, witnessed a steep 28% drop in powder exports, although figures to Mexico remained stable.
Regional Insights
Latin America proved to be a stable market, with cheese exports to the region jumping 34% in July, highlighted by a dramatic 260% rise in cheddar exports. Main contributors included Mexico, Central America, and the Caribbean.
In Europe, unexpected gains were noted as exports to the EU and UK skyrocketed by 357% in July. This growth was fueled by advantageous price differentials that rendered U.S. butter and milkfat products more competitive, despite prevailing trade barriers. Additionally, the demand for whey protein concentrate (WPC80) witnessed significant expansion.