Milk powder and whey create headwinds for U.S. dairy exports

U.S. dairy exports declined 2% year over year in milk solid equivalents (MSE) during the month of October, the result of slow sales to Southeast Asia despite another month of mounting cheese exports. Here’s Progressive Dairy’s 30,000-foot view of dairy-related export categories. Weak sales to Southeast Asia drive exports down After a streak of good news for U.S. whey exports, October sales stumbled and led to a decline in total U.S. dairy exports for the month. Total exports in MSE terms declined 2% year over year with the sharpest declines noted in a region that is one of the top customers for nonfat dry milk/skim milk powder (NFDM/SMP) and low-protein whey, as detailed in the U.S. Dairy Export Council’s (USDEC) monthly market update. In Southeast Asia, year-over-year NFDM/SMP volume slipped 31% in October while low-protein whey fell 19% in the same month. Reduced buying from the Philippines (down 38%) created the largest impact on total regional sales, while Malaysia (down 52%), ...