US exports firm in July

by | Sep 18, 2020 | Global, Volume trends

US dairy exports were impressive during the first seven months of 2020, increasing 14% despite a challenging global dairy trade environment. July volumes were 23% higher YOY with value up 17% YOY at US$554.1m. As in the past four months, most of the growth came from higher NFDM/SMP shipments to SE Asia and more whey products to China – these gains were partially offset by weaker sales to Mexico. July exports accounted for 16.6% of milk solids produced for the month – this was down from 17.3% in June but up from 13.8% in July last year.

Since April, about 50% of the total US export growth was from higher NFDM/SMP sales into SE Asia. In July, NFDM/SMP sales to the region were 30,103t, up 150% YOY. Total NFDM/SMP exports were 75,294t in July, up 52% YOY.

At 29,266t, July cheese exports were lower than in June, but still up 5% YOY. US suppliers were not competitive on the global market due to higher prices. Sales to Korea more than doubled but volumes to Mexico, Australia, Saudi Arabia, UAE and Central America were lower.

Whey sales to China continued to recover – shipments in July were 17,642t, lower than in May and June but more than double last year, when African Swine Fever affected the local hog herd. July US whey exports were up 30% YOY, topping 45,000t for the first time in nearly two years. WPC80 exports continued to surge, up 48% YOY in July on strong demand from China, Japan and the European Union.