Record Cheese Exports Push U.S. Dairy Exports Higher

The U.S. Dairy Export Council says continued record cheese exports and strong butterfat shipments boosted overall exports in October, the most recent reporting month.

Total U.S. dairy exports grew seven percent in volume year over year, while values jumped 17 percent to $837.1 million.

Cheese exports rose 36 percent for October, another month of record high sales with demand from nearly every market region. Cheddar exports led the charge, up 167 percent, supported by expanded processing.

Butter exports increased 170 percent with gains from the Middle East/North Africa, Canada, and Australia. Anhydrous milk fat was up 75 percent, with Mexico and Australia the top markets.

Whole milk powder exports jumped 121 percent, and milk protein concentrate rose 43 percent. Dry whey was up nine percent, supported by increased demand from South America and China.

Nonfat dry milk/skim milk powder exports were flat for the year but were up for the first time in five months.

Low-protein and high-protein whey shipments were both down one percent, partly because of lower demand from China, price competitiveness, and limited supplies.

Economists say the U.S. has maintained its price advantage to start the year and are forecasting exports to stay positive in the near term.

EDITOR’S TAKE:

Very good news for the dairy industry! Domestic demand remains solid, thus, increased export demand will help maintain or improve price prospects for dairy farmers into the foreseeable future. As we have pointed out over the past several months, livestock and dairy producers continue to realize excellent prices and good financial results. Don’t overlook livestock producers in your area when looking for customer prospects. And if you need help identifying them, please contact us for assistance. They should be targeted with your social media campaigns and on AgTruckTrader.com®.