Despite continuing port congestion, US dairy exports increased for the seventh consecutive month in August, reflecting gains in every major product category we track and stellar import demand from Mexico as shipments to China and SE Asia also lifted. In MSE terms, August trade was 13% ahead of the prior year comparable, with total value up 26% reflecting the impact of tighter global market conditions on pricing.
At 36,572t, cheese exports were 18.1% higher in YOY terms, reflecting stronger sales into Mexico and Latin America (Chile, Colombia, Panama, Honduras, Guatemala and El Salvador). Despite US cheese exports generally falling seasonally in the second half of the year, July and August this year have significantly diverged from the usual pattern.
NFDM/SMP exports were 78,908t, up 15.4% YOY in August. Powder exports rose more than 40% YOY (or 9,488t) to Mexico – where local milk production is likely under pressure, despite official statistics pointing to continuing growth. This, along with an improving economy and higher vaccination rates, has boosted Mexico’s buying to near pre-pandemic levels.
Whey product exports rose 9.2% YOY to 54,571t in August, with dry whey increasing 7.7% for the month and accounting for 88% of total volume.