The United States Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) released its latest global dairy markets and trade report in December 2023. The report provides their forecast of 2024 global dairy markets. International demand for U.S. dairy products is expected to remain weak in key importing countries this year as general economic growth remains slowed by higher interest rates, reducing consumer spending on dairy products.
USDA-FAS forecasts 2024 U.S. dairy exports to expand by 6.4% on a milk equivalent skim-solids basis and 8.2% on a milk equivalent milkfat basis. Growth in skim milk powder and dried whey products drives much of the elevation on a skim-solids basis.
The report shows little change in 2024 milk production in countries important to global dairy trade. Annual milk production in both the European Union and New Zealand is expected to decline slightly in 2024, while Australia shows minimal growth. The U.S. is forecast to have the largest absolute rise of the major milk-producing countries.
Scott Brown
Jan. 15, 2024
