Dairy Exports Down 0.4%; Cheese Exports Up 17% In ’24
U.S. dairy exports for 2024 totaled 2.23 million metric tons milk solids equivalent (MSE), down 0.4% from 2023, according to U.S. Census Bureau data released Wednesday. Geographical and product-by-product performance was mixed against a backdrop of heightened competition and tight U.S. milk powder supplies, according to the U.S. Dairy Export Council (USDEC).
U.S. dairy export value in 2024 rose 2% to $8.297 billion, the second-highest only to $9.655 billion in 2022, USDEC reports.
Positive Trends In 2024 For U.S. Dairy Exports
“Despite the small (volume) decline, we saw many positive signs in the results that bode well for the future,” says Krysta Harden, president and CEO, USDEC. “U.S. suppliers posted record-high cheese exports, strengthened their presence across Latin America, lifted U.S. dairy export value and demonstrated their commitment to global markets by persevering in the face of significant challenges.”
USDEC notes those challenges included a third straight year of Chinese demand contraction, intensified competition from Oceania as suppliers reworked their products mix to target markets outside of China, and reduced U.S. milk powder production that limited the U.S. presence in nonfat dry milk/skim milk powder (NDM/SMP) markets.
Record-Breaking Year For U.S. Cheese Exports
U.S. cheese exports in 2024 grew 17% to an all-time high of 508,808 metric tons, the first time cheese exports ever topped 500,000 metric tons (and the first time they crossed 1 billion pounds) in a year, USDEC says.
“With more than 450,000 metric tons of U.S. cheese production coming online between 2023 and 2026, U.S. cheese exports are ramping up at a perfect time,” Harden says. “The United States is already the No. 1 cheese supplier to the world, and we know we can strengthen our position in the years ahead.”
Latin America Drives Growth for U.S. Dairy Exports
A key market for that cheese as well as U.S. dairy ingredients will be Latin America, where USDEC notes U.S. suppliers recorded their best year ever in 2024. U.S. suppliers set records in several key markets, including Mexico, Central America, South America and the Caribbean, which combined accounted for more than 60,000 metric tons in new U.S. cheese export volume in 2024.
“We have a built-in geographic advantage in serving the region,” says Harden. “U.S. suppliers and USDEC have invested the time and resources to build trade relationships, cater to regional demands and prove our commitment to the market. And we continue to work hand in hand with stakeholders in the local industry to grow dairy consumption for the mutual benefit of dairy farmers and processors on all sides.”
Additionally, in 2025, U.S. suppliers will gain the added advantage of the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) reaching full implementation, USDEC says.
U.S. Dairy Industry Poised For Growth
The International Dairy Foods Association (IDFA) says the U.S. dairy industry is poised to establish a new “golden age” of U.S. dairy trade.
“The U.S. dairy industry is ready to capitalize on a renewed trade agenda in 2025,” says Michael Dykes, president and CEO, IDFA. “Consumers in the United States and around the world continue to demand more U.S. dairy because we provide an assortment of delicious, nutritious and affordable dairy products. From award-winning cheeses, to high-value whey ingredients and milk powders used to make life-saving products for children and adults, to safe and nutritious ESL (extended-shelf-life) milk, U.S. dairy is known throughout the world for quality and reliability.”
Challenges Facing 2024 U.S. Dairy Exports
As for challenges, China’s reduced dairy import appetite directly and indirectly weighed on U.S. dairy exports in 2024, USDEC says. U.S. dairy shipments to China fell by 9% compared to the previous year. In addition, decreased Chinese purchasing heightened competition in third markets from suppliers like New Zealand looking to find alternative markets to China.
USDEC notes U.S. suppliers felt the effect in NDM/SMP and lactose. U.S. lactose exports fell 9% in 2024 or by 39,304 metric tons, almost all due to China. U.S. lactose shipments to China dropped 27% (-35,993 metric tons).
The 2024 decline in U.S. NDM/SMP exports had multiple causes, and one of them was increased competition from New Zealand, USDEC reports. New Zealand channeled more raw milk into SMP production as Chinese whole milk powder (WMP) demand waned, successfully targeting U.S. NDM/SMP markets like Southeast Asia. U.S. NDM/SMP export volume fell 8% (-65,919 metric tons) in 2024.
Overcoming Barriers To U.S. Dairy Trade
“There will always be challenges to U.S. dairy exports. One of USDEC’s jobs is to facilitate trade and help U.S. suppliers overcome those challenges,” says Harden. “U.S. dairy’s success in international markets is testament to the ever-growing U.S. reputation as a reliable supplier of high-quality, nutritious dairy products.”
Dykes stresses the importance of creating fairness and opportunities through U.S. trade agreements and policy to help support dairy exports.
Expanding Market Access To Secure U.S. Dairy’s Role As A Global Leader
“Our industry is poised to become the world’s leading supplier of dairy products thanks to the resilience and innovation of the American dairy industry. To do that, we need a trade agenda that prioritizes market access and ensures a level playing field,” he says. “For too long, our exports to Canada have yet to fulfill the promises of the U.S.-Mexico-Canada Agreement because Canadian policies continue to prevent American exporters from filling their tariff-rate quotas.
Demand remains soft in key markets such as China and Southeast Asia, including the Philippines, Vietnam and Malaysia, illustrating the need for a strategic approach to trade with markets in the Asia Pacific region. Overall, U.S. dairy exports are performing well, but we can do more. With new trade agreements that remove obstacles and increase market access, we wouldn’t just break records — we would redefine the global dairy landscape for decades to come.”
Keep Up To Date On Cheese Industry News
Find all of HART Design & Manufacturing’s current industry news here.
Source: Cheese Market News
