Dairy Exports Facing Headwinds in 2023
With the April U.S. dairy exports documenting their worst year-over-year decline in four years, Ben Laine, a senior dairy analyst with Terrain says the headwinds facing dairy exports side of the equation is what concerns him the most right now.
“I think there is a little bit of a concern,” he says. “We started off strong, but some of that was probably some contracts that were locked in last year that are continuing to spill into this year. Now, we're not in as much of a discount as the rest of the world so we don't have that competitive price advantage that we that we previously had in 2022.”
Cheese, nonfat dry milk/skimmed milk powder (NFDM/SMP), low-protein whey, lactose, butterfat, whole milk powder (WMP) and fluid milk/cream all lagged prior-year levels. Laine shares that we are seeing a slowdown on the export side, while domestic demand is still holding on.
June 27, 2023