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US overtakes EU as largest milk powder exporter

3 January 2022 - Klaas van der Horst

The United States overtakes the EU as the largest exporter of skimmed milk powder in the world. This is expected by the US Department of Agriculture, USDA. In the just past year 2021, the export of this product increased by 10% compared to 2020, according to the latest estimate. Europe remains firmly in the lead in cheese exports.

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While European exports of skimmed milk powder fell by around 2021 tonnes to 11.000 tonnes in 820.000, US exports increased by 77.000 tonnes to 887.000 tonnes. This year, European exports are expected to recover slightly, but American milk powder exports are rising faster.

smpexp
The expected export of skimmed milk powder according to the USDA. The figures are x 1.000 tons.

Europe remains the largest milk producer and by far the largest exporter of cheese, according to researchers from the USDA. In the US, cheese producers even used subsidies again last year to sell cheese across the border. This is done via the instrument of cooperatives working together (CWT), where dairy cooperatives raise money themselves to export surplus cheese cheaply.

cheese exp
The expected development of cheese exports. The EU remains number 1 by far. Figures x 1.000 tons. Source: USDA.

American exports of skimmed milk powder received a significant boost last year due to strong milk production in the US and relatively favorable prices. If exporters in the US had not had to deal with major logistical problems in both domestic transport and at the ports, even more skimmed milk powder might have been sold across the border.

smpr
According to the USDA, American exporters benefited from more competitive pricing than the EU.

New Zealand is and remains the largest exporter of whole milk powder (VMP) and butter. Last year, exports rose to more than 1,6 million tons. Americans expect this to drop slightly this year.

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