Buyers have been lulled into a sense of supply security in recent years, and many were caught short by a global butterfat shortage this spring. Now at record levels, butterfat prices dominate the global dairy market conversation.
More milk is coming on in the second half of the year, but we don't see much relief in butter prices any time soon. The return to milk growth (and increases in exportable surpluses) could, however, limit continued gains in cheese and milk powders.
In April, U.S. export value was $461 million, up 23 percent from the year before. U.S. exports were equivalent to 14.6 percent of U.S. milk solids production.
To read more in the latest issue of Global Dairy Market Outlook, click here.
Vice president, communications and market analysis
U.S. Dairy Export Council