USDEC March 2024 Dairy Export Trends Revealed
In March 2024, the USDEC (U.S. Dairy Export Council) reported a concerning trend: Mexican imports of nonfat dry milk (NFDM) were on the decline.
This downturn reflects both weakened global demand for NFDM/skim milk powder (SMP) and a tighter domestic supply landscape. U.S. NFDM/SMP exports plummeted by 18% (-14,334 MT) in March, primarily due to a sharp decrease in shipments to Mexico, which were down by 37% (-15,700 MT) for the month and 26% year-to-date.
The decline in Mexican NFDM imports can be attributed to several factors, including increased domestic milk production in Mexico, a constrained NFDM supply in the U.S., and the competitive pricing of U.S. cheese, which has become an attractive alternative for cheese fortification. Despite challenges in the NFDM market, U.S. cheese exports soared in March, reaching over 50,000 MT for the first time in a single month, marking a 21% increase from the previous year.
The decline in Mexican NFDM imports can be attributed to several factors, including increased domestic milk production in Mexico, a constrained NFDM supply in the U.S., and the competitive pricing of U.S. cheese, which has become an attractive alternative for cheese fortification. Despite challenges in the NFDM market, U.S. cheese exports soared in March, reaching over 50,000 MT for the first time in a single month, marking a 21% increase from the previous year.
While Mexico remained a significant market for U.S. cheese, other regions also demonstrated strong demand, including South Korea and Japan. However, cheese volumes declined in Oceania, China, and Southeast Asia. Competitive pricing and favorable currency dynamics have played a pivotal role in driving U.S. cheese exports to record highs. Looking ahead, maintaining competitive pricing and navigating currency fluctuations will be essential for sustaining the momentum of U.S. dairy exports.
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