US dairy exports were surprisingly high in February, accounting for 17.5% of national milk supply, which was a 9-month high. This was despite the well-known issues with logistics and shipping delays. Dairy export value rose 7% YOY to US$565.5m while in MSE terms volume increased 15%.
Milk powder shipments were also at a four-month high, reflecting stronger sales into SE Asia and Mexico. USDA earlier reported higher stocks, suggesting domestic commercial disappearance was lower. Cheese exports were at a 6-month high, led by a 70% YOY gain in shipments to MENA, with stronger exports also to Japan, Korea, Oceania, China and Central America. Dry whey exports were at a four-month high, with China again leading the way, with shipments to this market more than doubling. Butter exports were at their highest level since August 2014, reflecting stronger exports into the Middle East.