Dairy exports see first major decline in some time
The U.S. Dairy Export Council says the volume of exports in April had its largest month-to-month decline in four years with weakness in nearly all categories.
U.S. milk export volumes were down 13 percent while values dropped 17 percent to more than $697 million because of weaker product prices.
RaboResearch senior dairy analyst Lucas Fuess tells Brownfield China has pulled back from global purchases.
“China still remains on the quieter side, which is been a little bit tough for global dairy markets and dairy trade,” he says. “Iinto Q4, Rabobank is expecting China to be back in the market.”
The Dairy Council says weaker margins for pork producers in China have also reduced the country’s demand for whey, directly impacting U.S. exports.
Analysts expect Europe to pull back on milk production to counter lower prices and New Zealand should see seasonal production declines later in the year.