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Southeast Asian dairy imports add to optimism

The U.S. Dairy Export Council says significant export growth in Southeast Asia in recent months has been diving renewed optimism on the trade front.

President Tom Vilsack tells Brownfield what’s beyond that…

“We had in November the best sales of skim milk powder in a month in the history of the U.S. dairy industry and most of that was a result of significant increases in purchases in Southeast Asia.”

He says a dispute between Indonesia and the European Union, increased cheese exports and improving relationships are also behind increased sales.

Globally, Vilsack believes supply and demand of dairy will be better balanced in 2020.

“It seems as if for the first time in a while supply and demand is where it needs to be so that prices paid to dairy farmers can continue to improve.”

He says limited powder inventories in the EU for the first time in years as well as limited production this year because of weather will also help balance dairy markets.