U.S. dairy exports headed toward record year but ‘crisis’ ahead

Published 2021년 11월 5일

Tridge summary

The U.S. is experiencing a record year in dairy product exports, with a 13% increase in value from the previous year, reaching $7.394 billion. Despite this, the dairy industry faces significant challenges due to supply chain issues that are potentially damaging its global reputation as a reliable supplier. Industry representatives are urging Congress to take action to address these challenges, including ocean shipping legislation, labor shortages, and extended port hours. The supply chain problems have led to increased export costs and a decline in the value of hay exports. Additionally, an agreement between the U.S. and EU to reduce tariffs on steel and aluminum is expected to alleviate steel shortages and high prices affecting agricultural equipment manufacturers. However, concerns have been raised about tariffs on imported phosphate fertilizers from Morocco, and empty containers in ports are causing disruptions to domestic surface transportation.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

While U.S. dairy product exports are headed for a record year, the ongoing supply chain crisis could cause irreparable harm going forward, dairy industry representatives warn. First, a look at some topline numbers. According to monthly data released by the U.S. Department of Commerce on Nov. 5, the value of U.S. dairy product exports for fiscal year (FY) 2021 (October 2020-September 2021) hit $7.394 billion, up 13% from FY 2020 and about equal with the previous record high of $7.4 billion in FY 2014. (The USDA and Department of Commerce also calculate the value of exports based on World Trade Organization definitions. Under those calculations, FY 2021 dairy exports totaled $7.319 billion.) Despite those numbers, current logistical problems pose a permanent threat to U.S. dairy exporters, Mike Durkin, president and CEO of Leprino Foods, said during a U.S. House Agriculture Committee hearing on Nov. 3. “The supply chain challenges have significantly impacted our business, and we ...

Source: Progressivedairy