April 8, 2014

US dairy exports in February hit six-month high

Driven by strong sales of cheese, whey proteins and butterfat, the US recorded the highest dairy exports in six months for February, according to the US Dairy Export Council.

The US shipped 160,510 tonnes of milk powders, cheese, butterfat, whey and lactose in February, representing an increase of 19% on-year.

Total value of dairy exports reached US$585.2 million, a surge of 37% compared to the same period of last year and an all-time high on a daily-average basis.

Cheese exports totalled 31,264 tonnes in February, up 44% on-year and the highest figure on a daily-average basis. Shipments to Mexico were up 46% on-year, while exports to Japan and South Korea were up 58% and 43%, respectively. In addition, exports to Saudi Arabia nearly tripled.

Whey exports topped 39,000 tonnes in February, up 11% on-year and represent the largest volume in six months. China remains the biggest customer for US whey products, with February purchases up 47% from a year earlier.

Butterfat exports soared 102% compared to February last year, while whole milk powder surged 191%, and milk protein concentrate jumped 58%. The majority of shipments went to the Middle East and North Africa region. Major customers include Algeria, China and Vietnam.

However, exports of non-fat dry milk/skim milk powder (NDM/SMP) have slowed considerably compared to the period between April and October last year. Exports averaged 51,268 tonnes per month during that period, while February's exports were merely 36,168 tonnes.

Total dairy product exports accounted for 15.5% of milk solids production, while imports amounted to 2.9% of milk solids production in February.

In February, the US exported 44% of the non-fat dry milk/skim milk powder produced in 2014, 7.7% of its cheese, 12.1% of its butterfat, 61% of its dry sweet whey and 67% of its lactose.