October 23, 2013

By the end of this year, the value of US dairy exports will total US$6.5 billion, up more than 25% against last year, as projected by the US Dairy Export Council (USDEC).

This year will mark the fourth consecutive year where US dairy exports have increased. In 2008 US dairy exports were sour, but have been improving over the years. In the 2011 report, the US set multiple export records including total export value of US$4.82 billion.

"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.

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

Yale economist Jeffrey Garten predicted "a third industrial revolution, led by the US," which will benefit from increasing energy independence, innovative public-private partnerships and technological prowess.