US Dairy exports experienced a roller-coaster ride in the first half of 2023. June’s data revealed a decline of 13% compared to the previous year. China’s reduced appetite and Europe's competitive cheese pricing posed challenges. But there's a silver lining: cheese exports showed recovery, and Mexico's demand surged.
European cheese prices created hurdles, notably in Korea. But, with US cheese prices dropping in recent months, Q3 might see an upswing. However, obstacles could resurface by year-end.
The WPC80+ export segment thrived, registering a 15% growth year-to-date. This surge was propelled by countries like Japan, Brazil, and China. Price adjustments and the product's wide-ranging applications, from infant nutrition to sports beverages, played a pivotal role.
On the brighter side, Mexico stood out. US dairy exports to our southern neighbor rose by an impressive 25%. The growth of U.S. pork exports is due to factors such as strong demand from consumers, the impact of drought on other meat producers, and the strength of the U.S. dollar.
China's declining demand, especially tied to its pork industry's price shifts, impacted the US sweet whey market. Projections hint at this trend continuing.
In Southeast Asia, the US faced a double whammy of intensified competition from New Zealand and regional economic challenges. The exports dropped by a significant 22%.
The first half of 2023 has been a mixed bag for US Dairy exports. Still, emerging trends suggest possible market rebounds in the latter half.
Source : wisconsinagconnection