Dairy export US declines, but finds new markets

The American dairy export decreased slightly in volume in September, but the export value continues to rise. This is evident from the American dairy data from export agency USDEC. Cheese exports are moving towards a new record, and the export of milk fat is also rising sharply, but the export of milk powders is lagging behind, except for the higher WPCs. The American exporters expect the most from cheese exports. Up to September, it is up by more than 68,000 tons compared to the same period last year and could potentially grow to around 600,000 tons over the entire year, as is anticipated. It is not entirely certain, of course, but hope for this was strengthened by a strong resurgence of exports to Mexico. Even more to the Netherlands Milk fat is also performing very well. Its export increased over the first 9 months of the year by more than 48,300 tons (or 150%) to 80,560 tons. Special growth markets are identified as Australia and the Netherlands (1,636 tons in September). With this, the Netherlands accounts for almost all EU imports. The export of WPC80+ rose by 4,600 tons to a total of nearly 60,700 tons up to September. However, the export of milk and regular whey powders declined significantly, as did that of lactose. The milk powder export alone fell by more than 76,000 tons. Noteworthy in the figures for September is a decrease in lactose export by 5% and a decline in the export of basic whey by 12%. Australia new market According to regions, USDEC observes that demand for dairy from Southeast Asia is weak, that Mexico is picking up again, and that there is unexpectedly good export to Australia. The latter is quite remarkable. The Australian dairy market has so far been primarily served from within the country or from New Zealand, but this year the cheaper American product is getting a chance. Australians are buying both more American cheese and more butter and cream. American dairy companies do not export much to New Zealand, except for lactose. In the first half of this year, quite a bit of lactose was sold to New Zealand, as the New Zealand milk powder export was doing well and there was therefore a high demand for American lactose. This product is used to standardize milk powder. However, the import stumbled in September. The Netherlands is also, as already mentioned, now listed as a new growth market, particularly for American (industrial) butter. Disputes over labeling The largest markets for American dairy remain Canada and Mexico. The export to these countries is going well, but there are still some disputes to resolve. According to the US, Canada is circumventing agreements made by bringing milk proteins to the American market too cheaply through 'mislabeling' and Mexicans need to adhere better to the rules for the naming of American cheeses.