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US butter exports hit record due to large price gap with EU
The export of butter and butter oil from the United States has risen to a record in the first three months of this year. Compared to the same period last year, almost three times as much was sold abroad. The main reason was the low price of these products in the US.
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According to export organization USDEC, nearly 23.900 tons of butter and butteroil were exported this year up to and including March. That is considerably more than was exported in the same period in previous years. By far the largest buyers of butter and butteroil were Canada and Mexico. Several hundred tons of product went to Europe. China and other Southeast Asian countries bought relatively little product.
The US butter price has been very low in recent months and can be offered up to 35% cheaper than New Zealand product. European product was also much more expensive, which is why a limited volume of butter from the US has been sold to Europe.
Cheese and powder
Incidentally, American exports of skimmed milk powder and cheese also went much better than in previous years. In addition to the low price, the threat of additional import tariffs by China, among others, also played a role. Perhaps American sellers were also more willing to sell product at lower prices for that reason.