Dairy products struggle to gain export traction
With lower prices and slumping volumes, November U.S. dairy product exports were valued at about $377.3 million, down 24% from the previous year and the lowest figure in nearly five years, according to Alan Levitt, with the U.S. Dairy Export Council.
Shipments of nonfat dry milk/skim milk powder (NDM/SMP) and lactose continued to track slightly higher than the previous year, but cheese and whey exports have fallen into a lower gear, and sales of butterfat, whole milk powder (WMP) and milk protein concentrate (MPC) have dwindled to negligible levels.
By volume, exporters moved 42,602 tons of NDM/SMP in November, up 1% from the year before. Almost half of November sales went to Mexico (21,273 tons), with exports to Peru a record-high 2,370 tons.
Most other categories continued the trends of prior months.
Cheese exports were 22,895 tons, down 7% from prior year. Volume has now trailed year-ago levels for 14 straight months.
Total whey exports were the lowest since July 2010, mostly due to a slowdown in buying from China, the largest U.S. customer.
In total, U.S. suppliers shipped 136,144 tons of milk powders, cheese, butterfat, whey and lactose in November, down 7% from a year ago and down 4% from October (daily-average basis).
U.S. exports (on a total milk solids-basis) were equivalent to 12.7% of U.S. milk solids production in November, the lowest since January. Imports were equivalent to 4.0% of production for the month (see table).
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U.S. dairy exports as apercent of production |
||||
Nov. |
Nov. |
Jan.-Nov. |
Jan.-Nov. |
|
Item |
2015 |
2014 |
2015 |
2014 |
NDM/SMP |
55% |
51% |
55% |
54% |
Total cheese |
5.2% |
5.6% |
6.0% |
20.0% |
Butterfat |
1.6% |
4.2% |
2.6% |
8.8% |
Dry sweet whey |
32% |
51% |
42% |
59% |
Lactose |
83% |
67% |
75% |
66% |
Total milk solids |
12.7% |
14.0% |
14.1% |
15.5% |
Source: USDA, USDEC, NMPF |