The volume of exports rose 15% in December, and all of the major exports grew in the last month of the year. But our analysts are keeping an eye out for headwinds in the year 2023.
U.S. dairy exports ended a year that was already very good with a bang. Based on milk solids equivalent (MSE), export volume went up 15% (+24,098 MT MSE) for a total of 2.4 million MT MSE. In terms of money, exports grew by 21% in December (+$128 million), bringing the total value of exports to over $9.6 billion in 2022, which is up 25% (+$1.9 billion).
In December, most of the major exports went up. Cheese went up 16% (+5,035 MT), NFDM/SMP went up 8% (+4,675 MT), whey products went up 20% (+8,200 MT), and lactose went up 30% (+8,849 MT). Only butterfat (down 4%, or 202 MT) and fluid milk/cream (down 4%, or 462 MT) were down a little bit in December.
Overall, December’s data showed that the major trends we’ve seen all year continued: the U.S. dairy industry made long-term investments, there were plenty of supplies, and strong demand from the key U.S. markets drove exports to record highs. As an example, U.S. exports to Mexico went up 23% (MSE) in December, which added 9% to the volume at the end of the year. In the same way, Japan went up 27% in December and 22% for the year, China went up 75% in December and 11% for the year, Korea went up 4% in December and 9% for the year, and so on.
Overall, 2022 was a great year for dairy exports from the United States. Can we expect the same in 2023? In this month’s report, we’ll talk about how great 2022 was and what to expect from U.S. exports of SMP, cheese, and whey this year.
