April 2, 2008

US dairy exports up 24 percent
 

The export volume of dairy products from the US grew by 24 percent and made up 11 percent of total US dairy production in 2007, according to the US Dairy Ag Focus report released by Rabobank.

The value of shipments last year reached US$2.9 billion, up 59 percent from 2006.

The US' main export markets are Mexico, Southeast Asia and Canada, which absorbed 60 percent of shipments.

If output growth continues to be more than domestic consumption, as is expected this year, exports are going to be very important for the US dairy sector, said Deborah Perkins, Rabobank Food & Agribusiness Research and Advisory managing director.

The US has increased its exports due to a surplus of milk.

In the last three years, milk production has gone up over 2 percent annually, but demand has grown less than 1.5 percent, resulting in a surplus of milk.

This year, production is expected to go up by at least 2 percent because of additional cows and higher production per cow.

According to Perkins, to counter the disparity between supply and demand, the dairy sector should educate consumers about the importance of dairy in maintaining a healthy lifestyle.

Aside from that, Perkins recommended that the industry should view exports as a more focused part of business operations in order to be successful in the long term.