milk and dairy products,
milk,
volume of production,
dairy market,
dairy farm
US strategies launch dairy exports
Thanks to the dollar’s weakening effect, US dairy exports in the first half of 2017 grew by 12.5% in volume and by 26.7% in value compared to the same period of 2016.
Total milk equivalent (ME) exports rose by 19.29% from January to June 2017, in particular towards Southeast Asia, Central & Caribbean America and Latin America. At the same time, milk imports dropped: -5.63%.
The first six months of 2017 marked a jump of 23.4% on a trend basis for American cheese exports. Mexico, South Korea, Japan and Australia are the main importing countries. Positive also the rebound in prices: + 25.8%, for over $ 726 million in revenue.
Increasing sales to new markets is an obvious choice for the United States to ease up stocks. Last June, in facts, there were 597,300 tonnes of cheese in the warehouses, 15.3% more than in June 2015.
Cream exports grew by 338.8% between January and June 2017, with Mexico and Canada the first countries of destination.
SMP exports also rose at a rate of +19.9% in volume and +31.3% in value. Mexico, Philippines, China, Indonesia, Malaysia, Vietnam, Pakistan are the first countries of destination; Mexico alone has a market share of 47%.
The strong increase in SMP sales is due to the prices. With quotations at 1.664 €/ton, the US SMP price is in line with Global Dairy Trade’s final result (1.663 €/ton) and remains more competitive than Oceania (1.697 €/ton) and EU (1,815 €/ton).
American cheese imports in the first six months of 2017 decreased by 11% compared to the same period of 2016. Italy is an exception, thanks to the strength of its PDO products.
Made in Italy cheeses improved performance in the US, with a +3.8% export rush than in the first six months of 2016. If between January and June 2014 Italy sent 12,633 tonnes of cheese, in the first half of this year Italy sent over 16,444 tonnes to the US, confirming that American consumers appreciate Italian quality.