Milk powder main culprit in low US dairy exports

In terms of value, there is not much wrong with dairy exports, because the much higher average dairy prices meant that there was still 12% more income from cross-border sales up to and including April. 

Exports of skimmed milk powder fell by 19% in April compared to the same period last year. There was less demand from both Southeast Asia and Mexico. Exports of 'low-protein whey' also fell sharply. Dairy exports to China fell by more than a quarter due to the trade dispute with that country. 

According to export organization USDEC, the low milk powder export is not only due to a trade dispute. The sharply reduced production of milk powder in the US also plays a role. That production reached the lowest level since 2014.

However, there were also things to report. Cheese exports rose for the second month in a row by 7%, particularly to Japan and Southeast Asia. Sales to Mexico also increased slightly. 

And although the export of 'low protein whey' dropped, the export of WPC80 and higher remained strong, also to China. Almost 30% more was sold. The lactose export also noted a plus. It is sold mainly to New Zealand, where the powder is mainly used to standardize whole milk powder.

Another product that went to export destinations in larger volumes is butter. Exports of this product rose by no less than 87% in April. In terms of tonnes, the volume was not yet very large, and strangely enough, American butter stocks rose to a new high in May. American butter is also rising in price, but at the same time remains considerably lower in price than European or New Zealand product. There should therefore be plenty of prospects for increased exports.