Improved sales of NDM/SMP and cheese push overall volume above year-ago levels.
A surge in nonfat dry milk/skim milk powder (NDM/SMP) exports to Mexico and Southeast Asia, plus increased cheese shipments to Mexico and United Arab Emirates (UAE) propelled total U.S. dairy exports above year-ago levels for the first time since October 2018.
U.S. suppliers shipped 170,731 tons of milk powders, cheese, whey products, lactose and butterfat in September, up 2% from last year. The value of all exports was $508.8 million, up 17% and the most since May.
Exports of NDM/SMP were 65,328 tons in September, a 16-month high. This figure was up 25% from a year ago. With EU intervention stocks mostly moved through the supply chain, buyers increasingly turned to the United States for powder. Exports to Southeast Asia (primarily Indonesia and Vietnam) were up 36% during the month, while sales to Mexico were up 14%. Shipments to Peru and Pakistan also were higher.
Shipments of fluid milk/cream continued to post double-digit increases. September volume was up 10% from last year, led by a 36% jump in shipments to Canada and increased sales to Southeast Asia and Taiwan.
Among other products, exports of whole milk powder (-49%), butterfat (-42%) and milk protein concentrate (-14%) all lagged prior-year levels.
Overall, in addition to increased dairy exports to Mexico, Southeast Asia and the Middle East/North Africa (MENA) region, suppliers moved greater volumes to South America – primarily milk powder to Peru and Colombia.
On a total milk solids basis, U.S. exports were equivalent to 15.3% of U.S. milk solids production in September. In the first nine months of the year, exports accounted for 14.2% of production.