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Growing dairy exports help offset weak domestic demand

A dairy marketer says a weak U.S. economy could make exports even more critical in the months ahead.

Mike North with Ever.ag tells Brownfield, “Consumers have been in what we’ll call okay shape, but some of this most recent economic data suggests that we could see some more headwinds coming from the American consumer.”

“With our demand being relatively stagnant here, we don’t want to have to put even more weight on the importance of exports.”

The U.S. Dairy Export Council says shipments were up 15 percent in April and on pace for another record year.

Total U.S. dairy exports were down two percent in volume year over year, while values increased nine percent to $781 million.

Cheese exports climbed 30 percent for April, setting another monthly record for the third straight month in a row.

Butterfat exports jumped 74 percent with exceptional growth in the Middle East and North Africa for butter and anhydrous milk fat.

Nonfat dry milk/skim milk powder exports increased nine percent for the month, driven primarily by the Philippines.

Low-protein whey shipments rose 39 percent.

The Council says the Strait of Hormuz closure seems to have redirected exports through Saudi Arabia, with butter shipments growing twentyfold year over year.

Brownfield’s Larry Lee discusses exports with Ever.ag’s Mike North.