Explore the remarkable rise in U.S. dairy exports this April, bolstered by unprecedented cheese shipments and significant whey growth. Will this upward trajectory persist amidst global economic changes?
The latest figures from the United States Dairy Export Council (USDEC) reveal a significant achievement-a 3% increase in U.S. dairy exports in April. This rise not only balances out earlier declines but also reduces the year-to-date export deficit to 1.6%. This positive trend is a result of various factors such as increased demand from key markets and competitive pricing strategies, which we are determined to maintain.
| Product | April 2023 Exports (Metric Tons) | Year-Over-Year Change (%) | Key Markets |
|---|---|---|---|
| Cheese | 46,270 | 27% | Mexico, Southeast Asia, South Korea, Middle East/North Africa, Caribbean, Japan |
| High-Protein Whey | Not Specified | 26% | China, Brazil |
| Low-Protein Whey | Not Specified | 8% | Mexico |
| Butter and Anhydrous Milk Fat | Not Specified | 23% / 100%+ | Global Markets |
| Nonfat Dry Milk/Skim Milk Powder | Not Specified | -2% | South America, Caribbean |
U.S. cheese exports surged by 27% in April, reaching 46,270 metric tons—the second-highest on record for a month. Mexico set an all-time high with 17,249 metric tons, a 53% increase. Other regions also saw significant gains: Southeast Asia (102%), South Korea (69%), Middle East/North Africa (40%), the Caribbean (24%), and Japan (11%). These figures underscore the solid global demand and competitive pricing for U.S. cheese.
High-protein whey exports grew significantly, nearly tripling to China and rising 66% to Brazil, showcasing increased demand. Low-protein whey also saw gains, up 8% for the year, with Mexico leading at a 79% increase. These numbers highlight the widespread appeal of U.S. whey products.
April saw the first year-over-year increase in butterfat exports since November 2022, highlighting renewed global interest in U.S. dairy products. Butter exports grew by 23%, and anhydrous milk fat exports more than doubled, showcasing the rising demand for these high-value ingredients.
Even with higher domestic butter prices, U.S. products have remained competitive globally, especially compared to the European Union and New Zealand. This price competitiveness has been vital in boosting butterfat exports, reinforcing the U.S.’s strong and stable position in the global dairy market.
Nonfat dry and skim milk powder exports declined by 2%, driven by reduced shipments to China and Vietnam. Despite this, South America and the Caribbean showed strong growth, helping to offset losses in Asia. This highlights the need for U.S. dairy exporters to diversify their markets to navigate global trade complexities. For more insights, check out global dairy trade predictions. As we look to May, U.S. dairy exports face many opportunities and challenges. The gradual global economic recovery could boost demand for dairy products, and severe droughts in key Mexican milk-producing areas may increase import demand, benefiting U.S. exports to this top market. However, rising U.S. cheese prices reduce the competitive edge over exporters like New Zealand and the EU, potentially slowing cheese export growth. Geopolitical uncertainties also threaten global trade by affecting supply chains, market access, and currency rates.
U.S. dairy exporters have a promising future ahead. By staying adaptable, leveraging strengths in high-protein whey, and exploring new markets, we cannot only continue to diversify but also expand our reach, opening up new avenues for growth and success.
Key Takeaways:
- Overall Export Growth: U.S. dairy exports increased by 3% year-over-year, effectively reducing the year-to-date export deficit to 1.6%.
- Cheese Exports: A remarkable 27% surge in cheese exports, driven by strong demand from Mexico, Southeast Asia, and South Korea, reaching the second-highest volume on record for a single month.
- High-Protein Whey: High-protein whey product exports rose by 26%, with China’s imports nearly tripling and Brazil’s increasing by 66%.
- Butterfat Revival: Butter and anhydrous milk fat exports saw their first year-over-year increase since November 2022, growing by 23% and more than doubling, respectively.
- Competitive Pricing: Despite rising U.S. butter prices, they remained competitive compared to European Union and New Zealand prices, bolstering global demand.
- Challenges Ahead: While the global economic recovery and severe droughts in key Mexican milk-producing states offer opportunities, rising U.S. cheese prices and geopolitical uncertainties pose potential risks.
