cheese,
milk powder,
milk price,
dairy export,
butter and cream
U.S. dairy exports hit a record in March
In March, the US dairy export continues, supported by increasing prices for milk, cheese, milk powders, butter and cream. Also the US dollar getting weaker against the Euro makes US products more competitive on the international market.
The balance sheet for the first quarter of 2018 shows US dairy exports growing by 16.5% in quantity and 3.9% in value, compared to the same period in 2017.
Thanks to the sales overseas, the US manage to place the production surplus and the strategy launched by U.S. Dairy Export Council has been renamed «The next 5%», meaning the increase in exports, to be achieved through a more aggressive policy on global markets.
The Next 5% is the industry — wide effort launched to increase U.S. dairy exports from the equivalent of about 15% of milk solids to 20% of the milk supply.
Positive exports of SMP, cheese, butter and WMP, in March 2018 y—o—y, both in quantity and in value, while whey powder grows in quantity but decreases in value. On the contrary, infant milk formula increases in value, while volumes fall.
For the coming months, it will be interesting to see how the trade flows will be regulates with China, in light of tensions on tariffs. The negotiations between Washington and Beijing are still ongoing and the results are absolutely unpredictable.
In the first quarter of the current year, US export to China increased for cheese (+57%), whey powder (+4%), infant milk formula (+153%) and lactose pharmaceutical (+76%). On the other hand, exports of SMP decreased by 52%.
Trade relationships with Mexico remain strong, with sales up, while exports to Canada are slowing down: +44% for cheese, -24% for whey powder, -8% for infant milk formula.
The US export route to Japan and South—East Asia was extremely lively.