Southeast Asia, China behind strong dairy exports

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Southeast Asia, China behind strong dairy exports

The U.S. Dairy Export Council says the volume and value of exports continues to grow at a double-digit pace.

President and CEO Tom Vilsack says export sales for the first eight months of 2020 were up 16 percent in volume and 14 percent in value.  During the recent AgriPulse Ag Outlook Forum, he said that has been greatly spurred by demand in Southeast Asia and China.

“China has increased its number of hog farms by about 14,000 just in the year 2020 which has obviously resulted in an additional need for product.”

August export volumes were 17 percent higher than 2019, totaling more than 190,000 tons, with values up 11 percent.  Strong exports on nonfat dry milk/skim milk powder, cheese, and whey products are credited for the increase.

Nonfat dry milk/skim milk powder exports were up 35 percent from last year with shipments to Southeast Asia more than doubling. 

Cheese exports were still up 17 percent on the year although prices were below May to June domestic prices which USDEC says could be a sign exporters are accepting lower margins to maintain relationships.

Whey exports saw a record double digit gain in all categories primarily because of China.  Exports were 29 percent higher than 2019 with shipments to China up 318 percent as that country rebuilds its hog herd.

Shipments of lactose were down eight percent while other gains were seen in milk protein concentrate (+37%) and butterfat (+4%).