According to the American Dairy Export Council (USDEC), exports by volume and value continued to grow at double-digit rates by the end of August. Most of the major product categories showed strong growth in August. American suppliers exported 190 435 tons of milk powder, cheese, whey, lactose and milk fat. Total exports of skimmed milk powder from the United States rose 35% to 68,798 tonnes, driven mainly by a doubling of shipments to Southeast Asia on competitive pricing.
The supply of milk powder to China increased significantly in August - from 173 tons in the same period of 2019 to 5343 tons in August 2020. US stocks continue to decline and the market remains balanced despite weak demand from Mexico.
US cheese exports rose 17% to 31,009 tons, with impressive growth seen in major US markets. Exports of cheese from the United States to Mexico rose 29% in August to 8807 tons, while sales to South Korea (+ 88%), Japan (+ 49%) and Australia (+ 53%) rose even more significantly. Export prices for US cheese were well below US domestic prices in May-June, suggesting that US companies agreed to lower margins to maintain international relations. Other markets where tourists are the main consumer of cheese, such as Central America, the Caribbean and Southeast Asia, continue to lag behind in cheese purchases as tourism is constrained by the pandemic.
Whey supplies in August were up 29%. The growth in exports of this category was mainly provided by China, which continues to restore the pig population.
Source: DairyNews.ru.
