U.S. Dairy Exports Surge Dramatically as Global Demand Soars
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June dairy exports skyrocket, underscoring the escalating international demand for U.S. dairy products.
The U.S. dairy industry has been on an exhilarating upswing, driven by robust exports in key categories such as cheese and butterfat. This remarkable performance was highlighted in June when year-over-year milk solids equivalent volume surged by 15%, elevating total U.S. dairy exports by 1.2% on a year-to-date basis. The surge in exports has also been mirrored in export value, which increased by 15% to reach $4.72 billion, underscoring the strong international demand for U.S. dairy products.
Monica Ganley, senior director of global trade analysis with the U.S. Dairy Export Council, attributes the uptick to improved U.S. milk production alongside tepid domestic demand, which has kept U.S. product prices affordable for global buyers. In particular, cheese has stood out, with international markets showing a voracious appetite for U.S. offerings.
“This combination has resulted in plentiful supply as well as very competitive prices for U.S. products compared to other international suppliers. In some cases, especially cheese, international demand has also been robust, which has further helped to drive export sales to a record high in June in the case of cheese,” she says.
The China Factor
A significant component of this export boost has been the pause in tariff tensions between the U.S. and China, which rejuvenated Chinese purchasing.
“I would remiss if I did not mention that in June, we also saw a recovery of certain products (low protein whey, lactose) for which volumes had tumbled in April and May during the trade conflict between the U.S. and China,” Ganley shares. “After a tumultuous start to the year, these products rebounded sharply in June with year-over-year growth, propelling overall export figures.”
Consistently Strong Performers
Cheese continues to be the star of the show, with June setting another record for U.S. cheese exports. This success is fueled by strong global cheese demand, allowing the U.S. to leverage logistical advantages and favorable trade relationships to meet global needs. With cheese production increasing by 2.2% in the first half of the year, the U.S. has remained competitive as an affordable supplier.