Exports and domestic demand drive growth
The U.S. dairy market is experiencing a period of growth, driven by robust exports and increased domestic consumption. Despite a stable average all-milk price from June to July, future prices are projected to rise, according to futures markets and USDA estimates.
The cost of dairy feed has decreased, boosting the July margin to a four-year high. This positive development has contributed to the overall strength of the market.
Domestic consumption of fluid milk has been higher than a year earlier for most of the past 10 months. Additionally, there has been growth in the consumption of yogurt, butter, and cheese, particularly non-American varieties.
Exports of U.S. dairy products have also been impressive, reaching 17.4% of total U.S. milk solids production in July. This marks the 13th consecutive month with lower milk production compared to the previous year.
The U.S. dairy market is in a healthy state, with strong exports and growing domestic demand. The positive outlook for the industry is encouraging for producers and consumers alike.