News dairy business
US sees whey powder sales in China almost halve
The weak economic situation in China has significant consequences for American dairy exports. In July, whey powder exports fell to the lowest level in eighteen months. Not only whey, but also sales of other products are under pressure. This is evident from figures from the American Dairy Export Federation (USDEC).
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Although many products show a downward trend in July, whey powder stands head and shoulders above the rest. In July, the export figure fell by almost 40% to approximately 33.654 tonnes compared to the same month last year. Sales to China even fell by 46%, which in terms of tonnage equates to a drop in demand of more than 12.000 tonnes. Sales of whey powder show a downward trend throughout the year, but sales are increasing by 2022. Over the first seven months, sales fell 20% to 280.553 tonnes. In 2022, sales of whey powder grew by 10%, making it the driving force behind growing American dairy exports
The declining whey powder sales are a result of the weak economic situation in China. This causes dairy and meat consumption to decline. Whey powder mainly suffers from the latter, as it is often used in the Chinese animal feed sector for feeding pigs. In addition, the US claims to face stiff competition from exporters from Europe and New Zealand.
Mexico buys more milk powder
A bright spot is that the export of skimmed milk powder showed a small growth in July, from 2,8% to 65.549 tons. Viewed over the entire year, there is a flat trend. Although China buys much less, neighboring country Mexico purchases significantly larger volumes. Overall, the US sold 11,7% less dairy in July, reducing export volume to 186.403 tonnes. There will be a volume loss of 2023% for the whole of 6,6.