Dairy exports strong: Let me count the ways
Any way you count it, 2013 was a banner year for U.S. dairy exports, according to a monthly and year-to-date summary from the U.S. Dairy Export Council.
• Total solids: Total overseas sales of U.S. milk solids were equivalent to 14.9% of U.S. milk production in December, leaving the full-year percentage at 15.5%, up from 13.2% in 2012.
Meanwhile, imports as a percent of milk-solids production were 3.4% in December, and 3.0% for the year.
• Percent of product: U.S. exports as a percentage of annual total production were up for every major product category, with 58% of nonfat dry milk/skim milk powder production exported last year. About 56% of total dry sweet whey production was exported, as was 72% of all lactose, 10.7% of all butterfat, and 6.3% of all cheese.
• Volume: For the month, U.S. exports of cheese topped 30,000 tons for the first time in December, and butterfat sales continued their improved pace. Skim milk powder and dry whey shipments saw a slight seasonal slowdown, but on balance U.S. exports during the month were well above a year ago, closing out a year of record export sales. U.S. suppliers shipped 158,001 tons of milk powder, cheese, butterfat, whey and lactose in December, up 30% from the prior year. Throughout 2013, export volume was 18% higher than the 2012 level.
• Value: On a value basis, U.S. exports were worth $604 million in December, 47% higher than prior year. It was the fifth month export values topped $600 million, bringing the full-year total to $6.72 billion, a 31% improvement on 2012.
• Market share: The United States was able to gain share of global dairy trade in 2013. Among the world's top nine exporters, U.S. export share of milk powder, cheese, butterfat and whey products was 19.0%, up from 16.1% in 2012. Increases were widespread across virtually all major markets in 2013. The three fastest-growing U.S. markets were China, Southeast Asia and the Middle East/North Africa region.
Source: USDA, USDEC, National Milk Producers Federation
Pennsylvania January IOFC improves
Penn State University’s measure of income over feed costs (IOFC) rose 3.5% in January, according to the latest Dairy Outlook report from economist Jim Dunn. At $10.74/cow/day, the January IOFC is up 36¢/day from December, and the highest value since September 2007.
IOFC reflects daily gross milk income less feed costs for an average cow producing 65 lbs. of milk per day, and the improvement in January came from a higher milk price. The January Pennsylvania all-milk price was up 60¢/cwt. from the revised December estimate, to $24.00/cwt., the highest level since August 2011.