Year-to-date sales of exported U.S. dairy products stand at $4.54 billion, up 22% over 2013.
While the slowdown reflects pricing disadvantages for U.S. suppliers and more competition from Oceania and the EU, two products did show growth.
U.S. dairy exporters shipped 171,516 tons of milk powders, cheese, butterfat, whey and lactose in July, down 9% from June (on a daily-average basis). Export sales slowed across the board, reflecting pricing disadvantages for U.S. suppliers and more competition from Oceania and the EU.
Compared with June, nonfat dry milk/skim milk powder (NDM/SMP) exports were down 17%, cheese was down 8%, butterfat was off 10%, dry whey was down 14% and lactose was down 11%.
Total exports were valued at $622.5 million in July, down 10% from June (daily-average basis), but up 2% from last year. That brings year-to-date sales to $4.54 billion, up 22% vs. 2013.
Sales to the United States’ top two single markets – Mexico and China – held up fairly well in July, each slipping just 4% vs. June (by value, daily average). And shipments to several other top customers, including Indonesia, Saudi Arabia and Algeria, were above the prior month. But U.S. exports slowed considerably in a number of key markets, including South Korea (-25% vs. June), Japan (-22%), Vietnam (-19%), Malaysia (-57%), Thailand (-53%), Canada (-17%), Dominican Republic (-24%), Peru (-44%) and Morocco (-71%).
Exports of NDM/SMP were 52,198 tons in July, the lowest figure since March. Shipments to Southeast Asia were in line with prior months, but sales to Mexico were off by a third compared with June. With the slowdown in exports, U.S. commercial inventories of NDM rose to a record high at the end of July.
Source: U.S. Dairy Export Council
