Dairy Exports Up While Domestic Consumption Falls

Dairy sales in 2022 have been a mixture of good news and bad news.  National Milk Producers Federation (NMPF) says overseas demand for U.S. dairy products is continuing at a blistering pace. The U.S. dairy industry achieved another record export volume in June by shipping 19.6 percent of its total milk solids production to foreign countries. The U.S. also set a new record for the dairy trade balance, or exports minus imports, of 16.2 percent in terms of milk solids production. 

NMPF says domestic dairy product prices have softened in the past few months but remain near historically high levels. They say high dairy product wholesale prices continue to drive rapid retail price inflation, which is taking a toll on domestic consumption at both retail and food service.   The dairy group says the retail price index for all dairy products was almost 15 percent higher in July than a year earlier. In comparison, total food and beverage price inflation was up by 10.5 percent and overall inflation by 8.5 percent.

Editor’s Take:

Dairy is a very important sector within the ag economy. It is good news that despite a slightly softer domestic market prices remain solid supported by expanding export development. Dairy farmers have a great deal invested in their operations and continually face challenges with obtaining enough qualified workers to assist in their operations. Therefore, it is good to know that overall they are doing well in the current market environment. If you have dairy operations in your area, now is a perfect time to reach out and encourage them to visit your inventory on AgTruckTrader.com. Also let them know about specific products/services that are part of AgPack which could help improve their operations. If you need assistance in identifying the appropriate AgPack partners, don’t hesitate to reach out to a CAD Dealer Service Advisor by phone or email - and help will be on the way immediately! Our goal is to help you sell more trucks and SUV’s to be as successful as possible!