Export reconsideration for US dairy industry

The US dairy industry is having to change its attitudes towards export markets, according to the US Dairy Export Council.

It follows the publication of new research by banking group Rabobank, which state that the country’s dairy exports grew by 24% during 2007, amounting to 11% of the industry’s total milk output for the year. This figure was up from just 5% in 2002, according to the figures.
While USDEC’s own figures suggest that only 9.5% of total US milk production was exported on a total solids basis during 2007, the council did concede that this still represented significant growth for the industry either way.
According to the council, the country’s producers have long been exporting dry ingredients for processing like whey and lactose, but there has also been a recent surge in demand for its cheese and butterfat as well.
The neighbouring markets of Mexico and Canada were found to be the most significant destinations for the US’ dairy shipments due to their geographic proximity and financial advantages linked to tariffs.
Mexico alone has seen a 20% increase in US imports annually since 2002, although the changing global market place is resulting in improving profitability for exports to Europe and the Asia, Pacific region also, USDEC said. In China, the volume of whey and lactose imported from the US rose by 70%, while more developed consumer markets in the region like Japan and South Korea were increasingly purchasing higher-value dairy products, the council added.