Challenges and outlook for US dairy exports in 2024

United States
Market & Price Trends
Published Jan 5, 2024

Tridge summary

In fiscal year 2023, US dairy exporters faced challenges from slow economic growth, increased competition, and weakening demand in China and Southeast Asia. The weaker US dollar in 2023 helped cushion some losses in price competitiveness, but global factors such as higher interest rates and reduced discretionary spending continued to impact the industry. In fiscal year 2024, similar headwinds are expected to affect US dairy exports, with lower year-on-year prices and declining export values, especially in the first two quarters.
Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

Fiscal 2023 was a challenging year for US dairy exporters, impacted by slow economic growth among importers and increased competition from New Zealand and the EU. However, a slightly weaker US dollar in 2023 helped cushion losses in price competitiveness. Throughout the year, export values for nonfat dry milk (NDM), cheese and whey remained lackluster, mainly due to weakening demand in China and Southeast Asia. Globally, higher interest rates impacted discretionary spending, particularly affecting dairy consumption, which is not a traditional staple of Asian diets, the fastest growing region for major exporters. In 2024, U.S. exports are expected to face similar headwinds for much of the year. A combination of factors has impacted demand in key Asian markets in 2023 and is expected to continue in 2024. In 2023, after the end of COVID lockdowns, governments came under pressure to control fiscal spending and moderate aggregate demand to combat the high level of inflation. Central ...
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