Economist says U.S. dairy is benefiting more from exports
A dairy economist says U.S. dairy exports continue to be strong, which is a good thing for U.S. farmers. Lucas Fuess with RaboResearch says it is likely the U.S. will have a record for dairy exports for the 2022 calendar year. “But, when we weight that against growing milk production here, those exports are very needed to kind of keep product moving away from our shores and remove a little bit of the weight of this growing production that it has on the markets.”
Fuess says recently released data from November shows stronger export demand, but not from the usual buyers. He says China, for example, stopped buying skim and whole milk powder. “As their stockpiles, as their inventories are really built, and as they had enough product, they’ve kind of pulled back and that was one of the reasons why we’ve seen prices decline recently.”’
And until China steps back into the market, Fuess does not expect powder prices to recover much.
The U.S. Dairy Export Council says about one of every five days milk production is turned into an export product.