According to the US Dairy Export Council, there are three major obstacles preventing exports this year.
Will Loux, Vice President of Global Economic Affairs, notes that the majority of July’s losses were due to a 40% decline in low-protein whey exports.
“We’re basically facing every headwind you can think of right now on the international market, with an absent China, a global economic crisis, and extreme competition from our major export competitors, and yet the US is only down 6%,” he adds.
For the first seven months of the year, dairy exports were down 12% in value. Loux expects China’s demand to increase, but the import mix will shift in the future.
“I believe you’ll see more skim milk powder imported for bakery and the like, or imported for ice cream,” he predicts. “I believe there will be more cheese going—we’ve seen that a lot this year.”
Cheese exports were unchanged (-1%) in July, with a resurgence in Japanese sales helping to overcome decreased demand. Nonfat dry milk/skim milk powder sales climbed significantly (+3%) due to increasing sales to Mexico.
