A recovering global economy is good news for U.S. dairy exports, with 2010 U.S. sales growing 39% over 2009 to 1.5 million tons.
Source: U.S. Dairy Export Council
A recovering global economy is good news for U.S. dairy exports, with U.S. sales growing 39% over 2009 to 1.5 million tons. This represents nearly 13% of total milk solids sold in 2010, notes the U.S. Dairy Export Council.
In its annual report, released today, USDEC notes: “One of the most noteworthy developments of the past year was the confirmation that 2009’s slowdown in consumption growth was indeed a blip in long-term dairy growth trends. As emerging market economies rebounded so did their dairy appetites. . . .
“The better news is that this emerging demand is growing at developed market prices, a change from years past when global prices were softened by export subsidies and market barriers. Emerging market buyers have shown that dairy products bring a taste and nutritional value worth paying more for than previously.”
China has been a stellar bright spot for world dairy trade. In 2010, China purchased 320,000 metric tons of whole milk powder. This is seven times the amount it purchased in 2008. It now accounts for 15% of whole milk powder trade in the world, up from 3% in 2008.
New Zealand is supplying much of this demand. But that is soaking up much of its production, with New Zealand farm gate prices now substantially exceeding U.S. milk prices, say independent sources. But this also opens up the door for U.S. sales to others who are seeking milk powder that the Kiwis are now unable to supply.
Market access issues remain, however, for the United States. Most notably, USDEC and U.S. trade officials continue to work with Chinese counterparts in clarifying export certificate requirements . In addition, the United States Department of Agriculture (USDA) continues to work with European Union officials in determining what EU somatic cell count requirements mean for our exports.
