December 5, 2007

US dairy exports up 32 percent for first half of 2007

International markets continue to provide profitable outlets for US dairy producers, as evidenced by strong export growth during the first six months of 2007 a Dairy Management Inc. report said.

During the period, US dairy exports were up 32 percent compared to the same period last year.

Exports are gaining a greater share of production, accounting for 11 percent of US milk production, up from 9.3 percent in 2006.

By some estimates, exports could top US$2.4 billion this year.

The value of US dairy exports have doubled in the past 12 years to hit US$1.9 billion in 2006, thanks in part to the US Dairy Export Council, the main agency promoting US dairy exports.

Milk solid exports have also doubled in the past five years.

Dramatic expansion in US milk production has made developing new international markets critical for the US dairy industry as it prevents prices from falling drastically in domestic markets, said Tom Suber, president of USDEC.

Through USDEC, the checkoff partners with the U.S. Department of Agriculture and about 60 cooperative, processing and manufacturing partners to develop and expand international markets for US dairy products and ingredients.

The US now sells nearly as much whey protein and milk powder both internationally and domestically. Just five years ago, only 28 percent of whey was exported.