A continuation of elevated prices and increased high-value exports drove the value of U.S. dairy exports higher in February, according to the U.S. Dairy Export Council (USDEC).

Update Highlights

• February Class III-IV milk prices higher
• PMVAP payments wrapping up
• U.S. dairy export outlook improves but imports up too
• Dairy cull cow slaughter slowed in January
• November 2021 mailbox, all-milk price spread tightened

After a slower October, November strength in foreign sales of milk powders and cheese pushed the U.S. dairy export market toward a strong finish to 2021, according to the U.S. Dairy Export Council (USDEC).

A U.S.-Mexico-Canada Agreement (USMCA) Dispute Settlement Panel found Canada is improperly restricting access to U.S. dairy products in violation of its USMCA tariff-rate quotas (TRQs) commitments. With the finding, Canada faces possible retaliatory measures if the dispute issues are not resolved by Feb. 3.

Strength in cheese and butterfat exports was offset by weaker sales of milk powders and whey, resulting in a small year-over-year decline in U.S. dairy export volume (milk solids equivalent) in October, according to the U.S. Dairy Export Council (USDEC).

Despite increases in the number of loaded shipping containers moving out of major California ports, port congestion remains a challenge. Nonetheless, U.S. dairy exporters are finding channels to reach global markets with a diverse product mix. The USDA released August agricultural export estimates, Oct. 5. In-depth analysis was provided by the U.S. Dairy Export Council (USDEC) in the organization’s U.S. Dairy Exporter Blog.

U.S. dairy exporters continued to overcome logistical challenges in July, moving more products into international markets compared to the same month a year earlier for a sixth consecutive month.

If you watched any of the 2021 Summer Olympics, you saw some “fast” athletes. U.S. dairy exporters have also had their running shoes on this summer, pushing foreign sales of dairy product and ingredient to a record pace.

Lower U.S. fluid milk consumption and higher export volumes are changing the balance of how U.S. total milk solids are being sold. Based on calculations by Progressive Dairy, it’s likely the U.S. exported more total milk solids (butterfat, protein and other solids) during the first five months of 2021 than were consumed domestically through fluid product sales.

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