October 18, 2013

US dairy exports are expected to reach US$6.5 billion by the end of this year, a rise of 25% from 2012.

This was projected by the US Dairy Export Council (USDEC) noting that with the said increase, 2013 will mark a fourth consecutive record year for US dairy exports.

'Credit for another record year for US dairy exports must go to our suppliers and traders, who are showing more ambition, more commitment and more capability to pursue export markets,' said Tom Suber, president USDEC, funded primarily by dairy producers through the dairy checkoff programme.

Suber said US exporters have capitalised in 2013 on reduced supply from other countries, steady global dairy demand and favourable pricing. More than 15% of US milk production now goes to exports.

Tim Hunt, global dairy strategist for Rabobank, said a global shortage of dairy products is expected to continue, driving continued growth for US exports in 2014.

'In the next six months, the US is likely to be the region with the most additional supply available to grow exports,' Hunt told USDEC members. 'In addition, the US looks to be entering a period of enhanced competitiveness.'

Meanwhile, key buyers, most notably China, are looking to diversify their supply.

Yale economist Jeffrey Garten, who served as undersecretary of commerce for international trade in the Clinton administration, predicted 'a third industrial revolution, led by the US,' which will benefit from increasing energy independence, innovative public-private partnerships and technological prowess.