Exports rally after 12 months of year-over-year declines in the US

In February, the U.S. dairy export market experienced a notable recovery, with cheese exports hitting a record high of 41,854 metric tons, a 27% increase from the previous year, driven by demand from Latin America, Japan, and the Middle East. This surge was led by shredded cheese, while nonfat dry milk/skim milk powder exports grew by 3.4%, and whey exports continued to rise. Overall, dairy exports reached 501.1 million pounds, marking a 5.5% increase. Despite this growth, dairy heifer exports significantly declined, and hay exports only saw a modest rise. Following a substantial purchase by Saudi Arabia, U.S. hay exports to the country jumped nearly 700%. The U.S. agricultural trade balance remained negative, with exports projected at $170.5 billion and imports at $201 billion for the fiscal year. Dairy exports are expected to increase due to higher product prices, with China predicted to be the largest market for U.S. agricultural exports, amidst strong competition from South America in the corn and soybean markets.