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US dairy exports fall, but find new markets
US dairy exports declined slightly in volume in September, but the export value continues to rise. This is evident from US dairy data from the export agency USDEC. Cheese exports are reaching a new record, and milk fat exports are also rising sharply, but milk powder exports are lagging behind, with the exception of higher WPCs.
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American exporters have the highest expectations for cheese exports. Through September, these are expected to be up by over 68.000 tons compared to the same period last year and could well grow to around 600.000 tons for the year as a whole. While this is not entirely certain yet, hopes for this have been bolstered by a strong rebound in exports to Mexico.
Even more to the Netherlands
Milk fat is also performing very well. Exports of this product increased by over 48.300 tons (or 150%) to 80.560 tons in the first nine months of the year. Australia and the Netherlands (1636 tons in September) are considered special growth markets. This means the Netherlands accounts for almost all EU imports.
Exports of WPC80+ increased by 4.600 tons to a total of nearly 60.700 tons through September. However, exports of milk and regular whey powders, as well as lactose, declined sharply. Milk powder exports alone fell by more than 76.000 tons. The September figures show a 5% drop in lactose exports and a 12% decrease in base whey exports.
Australia new market
By region, the USDEC finds that dairy demand from Southeast Asia is weak, Mexico is picking up, and there is unexpectedly strong export activity to Australia.
This last point is quite remarkable. Until now, the Australian dairy market has primarily been served from domestic or New Zealand, but this year, the cheaper American product is getting a chance. Australians are buying more American cheese as well as more butter and cream.
American dairy companies don't export much to New Zealand, except for lactose. In the first half of this year, a fair amount of lactose was sold to New Zealand, as New Zealand's milk powder exports were booming, resulting in high demand for American lactose. This product is used to standardize milk powder. However, imports faltered in September.
The Netherlands, as already mentioned, is now also regarded as a new growth market, particularly for American (industrial) butter.
Disputes about labeling
The largest markets for American dairy products remain Canada and Mexico. Exports to these countries are going well, but several disputes remain to be resolved. According to the US, Canada is circumventing agreements by mislabeling milk proteins and selling them too cheaply on the American market, and the Mexicans need to better comply with the rules for naming American cheeses.