March 24, 2006

US dairy exports reach record levels in 2005 

US dairy export values rose by 56 percent in the last two years, reaching a record US$1.66 billion in 2005, according to a report released on Mar 22 by the US Dairy Export Council (USDEC).

The council said economic growth in Asia, Russia, Mexico and the Middle East were conducive to increased global sales of milk components, despite high world prices.

Tom Suber, president of USDEC said demand in overseas markets has been so good that it has sustained itself at high price plateaus, most of which are above US domestic prices. He added that overseas sales in 2005 occurred at profitable levels for dairy companies.

As US milk processors and manufacturers produce more milk solids that the US market can consume, export channels are critical for the industry. According to USDEC and USDA information, in 2005, the US exported about 35 percent of all nonfat milk powder produced, 40 percent of sweet whey and whey protein concentrate and 61 percent of lactose.