Dairy exports help create demand for dairy products. This post explores the 2022 exports compared to the prior years and compares exports to domestic production for the four commodities used to price producer milk: cheese, butter, nonfat dry milk (NDM), and dry whey.
Tables I & II put a perspective on the size of these exports. The largest export volume of these commodities is NDM/skimmed milk powder (SMP) followed by dry whey. These are really the byproducts of butter and cheese production. The export of cheese and butter are much smaller than their byproducts. Exporting NDM/SMP and dry whey do not increase the amount of milk needed from dairy producers, but the export market does provides a way to sell the byproducts at a decent price. Increasing exports of cheese and butter does expand dairy milk production.
April 4, 2023
John Geuss
milkprice.blogspot.com
