November 28, 2013
US dairy exports may outgrow Australia, New Zealand
While Australia's dairy industry is projected to produce half the profits which will come from Tasmania's farming sector this financial year, international dairy trade is also stimulating emerging dairy exporters in the US.
This is according to Rabobank's global dairy strategist, Tim Hunt.
Hunt says that Australian and New Zealand dairy exporters need to ensure their market does not get eroded as the US dairy industry has some comparative advantages and is seeing fast growth. While growth in milk supply in the US is only about 1% yearly, which equates to a billion litres a year, US dairy exports are growing by about 10%.
Hunt attributes the growth to Mexico-bound exports, although US dairy products are also increasingly being shipped to Australia's traditional dairy export markets of Japan and other parts of Asia.
