export,
butter,
milk and dairy products,
cheese
Competitive prices push up US Dairy exports
In the first two months of 2018, US dairy exports grew +12.7% in quantity and +1.2% in value, year—over—year.
The export volume increases more than the value, a sign that the competitiveness of U.S. dollar against the Euro, together with the low market prices of «Made in USA» dairy products, pushes sales over the border.
If we make a global price comparison, U.S. prices of cheese, butter, WMP, milk and whey powder are lower than in Oceania, in the EU and at Global Dairy Trade auction.
Going back to international trade, cheese exports, in particular, grew by 12.2% in volume and +9.7% in value. The increase in SMP export in quantity was very positive (+16.7%), but in value decreased (-4.4%).
On the NAFTA side, the trade agreement put in discussion by U.S. President Trump, a double trend of the U.S. market is emerging at this stage. Dairy export to Mexico grows fast, while the Jan-Feb export to Canada shows a significant decrease. Is it a temporary trend or is it going to last?
Exports to China are growing for different products: cheese (+58%), whey powder (+1%), infant formula (+182%). Instead, SMP exports to China plunged: —42% in the first two months of 2018, year—over—year.