U.S. Dairy Exports Rise 8.5% in September as Milk Powder, Cheese, and Whey Drive Growth
Source: DairyNews.today
U.S. dairy exports saw a robust 8.5% increase in September on a milk solids equivalent (MSE) basis, marking a third consecutive month of year-over-year (YOY) gains, according to data from the U.S. Dairy Export Council (USDEC).
The recent performance has propelled U.S. dairy exports to their best quarterly showing since late 2022, as demand remains strong in key markets outside China.
Export values surged 18% YOY to reach $715.2 million, the second-highest monthly total of 2024. This upswing has pushed the year-to-date (YTD) export value into positive territory for the first time this year, showing a slight increase of 0.4% over 2023 levels.
Key Product Categories Drive Gains
Increased global demand for nonfat dry milk/skim milk powder (NFDM/SMP), cheese, and whey contributed significantly to September’s growth. NFDM/SMP exports rose 16% YOY, with a notable 8,481 metric ton (MT) increase in shipments, largely due to strong demand from Mexico and Southeast Asia.
Mexico’s NFDM/SMP purchases in the third quarter surged 17% YOY, hitting a record 105,841 MT, underscoring a significant rebound after a subdued first half. Similarly, NFDM/SMP exports to Southeast Asia rebounded in September, up 34% YOY, led by gains in the Philippines, Singapore, and Malaysia.
Cheese exports continued their upward trajectory with a 7% YOY increase, marking nine consecutive months of growth. Demand across Mexico, South and Central America, and the Caribbean offset weaker sales in East Asia.
Low-protein whey also had a strong showing, with shipments reaching a 2024 peak of 46,307 MT, up 15% YOY. Sales to Indonesia tripled, while shipments to China, the largest buyer of U.S. low-protein whey, rose 12%.
Mixed Results in High-Protein Whey
High-protein whey (WPC80+) exports, in contrast, declined slightly by 1% YOY in September. Gains to China and India were outweighed by softer demand from Japan, the Netherlands, and South Korea.
Weakened Demand from China Persists
Despite broad-based gains, U.S. exports to China remain a weak spot, with MSE shipments to China down 13% YOY in September. NFDM/SMP exports fell by 50%, cheese exports dropped by 85%, and lactose shipments declined by 39%.
Economic challenges in China, including sluggish growth, are impacting dairy import demand across the sector. The Chinese government is convening this week to discuss recent stimulus measures aimed at boosting domestic consumption, though it remains uncertain if these will rejuvenate dairy imports in the coming months.
As global markets evolve, U.S. dairy suppliers continue to adapt, driven by resilient demand in markets like Mexico, Southeast Asia, and Latin America.
Export values surged 18% YOY to reach $715.2 million, the second-highest monthly total of 2024. This upswing has pushed the year-to-date (YTD) export value into positive territory for the first time this year, showing a slight increase of 0.4% over 2023 levels.
Key Product Categories Drive Gains
Increased global demand for nonfat dry milk/skim milk powder (NFDM/SMP), cheese, and whey contributed significantly to September’s growth. NFDM/SMP exports rose 16% YOY, with a notable 8,481 metric ton (MT) increase in shipments, largely due to strong demand from Mexico and Southeast Asia.
Mexico’s NFDM/SMP purchases in the third quarter surged 17% YOY, hitting a record 105,841 MT, underscoring a significant rebound after a subdued first half. Similarly, NFDM/SMP exports to Southeast Asia rebounded in September, up 34% YOY, led by gains in the Philippines, Singapore, and Malaysia.
Cheese exports continued their upward trajectory with a 7% YOY increase, marking nine consecutive months of growth. Demand across Mexico, South and Central America, and the Caribbean offset weaker sales in East Asia.
Low-protein whey also had a strong showing, with shipments reaching a 2024 peak of 46,307 MT, up 15% YOY. Sales to Indonesia tripled, while shipments to China, the largest buyer of U.S. low-protein whey, rose 12%.
Mixed Results in High-Protein Whey
High-protein whey (WPC80+) exports, in contrast, declined slightly by 1% YOY in September. Gains to China and India were outweighed by softer demand from Japan, the Netherlands, and South Korea.
Weakened Demand from China Persists
Despite broad-based gains, U.S. exports to China remain a weak spot, with MSE shipments to China down 13% YOY in September. NFDM/SMP exports fell by 50%, cheese exports dropped by 85%, and lactose shipments declined by 39%.
Economic challenges in China, including sluggish growth, are impacting dairy import demand across the sector. The Chinese government is convening this week to discuss recent stimulus measures aimed at boosting domestic consumption, though it remains uncertain if these will rejuvenate dairy imports in the coming months.
As global markets evolve, U.S. dairy suppliers continue to adapt, driven by resilient demand in markets like Mexico, Southeast Asia, and Latin America.
