All the world’s an export market
The news from Bord Bia that dairy exports are a big portion of the Irish export total should come as a surprise to no one. Ireland has long been an exporting nation for dairy products, and producers there are used to packaging the Irish USP cows fed on grass to the global audience. Similarly, Hilmar Cheese in California, US is gearing up to export powders with its new facility. I suspect that this particular area will be one the American producers will be very keen to exploit, as cheese makers look for other revenue streams to boost their incomes. While the Irish tend to export finished products, the US has the capacity to become a powerhouse in the area of WMP and SMP, I am sure. That being said, Ireland’s powder exports are expanding as well. They are not slouches in that area.
The Bord Bia report also notes that prices for global products should remain supported as the Asian market continues to increase demand for safe dairy products. Add that to the recent issues New Zealand’s Fonterra has had with its supply E. Coli scares and so forth, and you have the stage set for an interesting year, where predicted supply may not always materialise. Whatever 2014 has in store, I do not think it will be a dull year for dairy.