October 3, 2007

China's cheese and whey demand benefit American dairies

American dairy farmers are benefiting from the rising demand in China for cheese and whey products, helped by the weaker US dollar.

Rising incomes, rapid development of the dairy processing industries and a weaker US dollar are all leading to higher exports of cheese and whey for American dairies, according to the Milwaukee Journal Sentinel.

Exports in Wisconsin, a major dairy-producing state are up 89 percent, the paper reported.

Wisconsin dairy exports reached record levels for the first six months of 2007. The dollar value of the state's dairy exports increased from US$40 million in 2006 to US$76 million in 2007, according to the state's agriculture department.

While some in the US agricultural industry, such as apple growers are struggling to compete with low-cost Chinese imports, American dairy farmers are exporting in greater quantities what used to be a waste product - whey.

Whey is now used extensively in processed foods, especially in China's dairy industries. Although some of these cater to the market in China, many shipped the finished product back to the US.

Still, rising incomes in China is stoking the demand for more cheese, which is consumed locally.

The boom may not last long however - the rapid development of China's own industry casts doubts on how long the present situation would last, the article said.