Of course the US has been a solid export partner for years – in 1997 the US shipped 4.5% of total milksolids overseas. But we broke into the market as a third player in 2007 when Oceania suffered its first major drought as global demand was rapidly growing. By 2008, total exported US milksolids had grown to 10.8%. So it is fitting that yet another New Zealand drought propelled the US to the growth witnessed in 2013 – a record 15.5% of total milk production, up from 13.1% in 2012.
The most pivotal item we gleaned from US manufacturers in 2013 was their willingness to make products the global market desired. Total skim milk powder production was up nearly 66% (250 million lbs) and whole milk powder (WMP) up 24% (30 million lbs), nearly all of which made its way overseas. Butter exports ended 88% higher than 2012 (78 million lbs) and talk of numerous butter plants switching production to an 82% unsalted spec helped boost trade volumes.
Darigold and Michigan Milk Producers Association have already re-tooled their plants to make WMP last year and Dairy Farmers of America’s Fallon, NV plant will begin producing WMP early this year. And Hilmar has announced they will be building a milk powder plant in Turlock, CA that will be specifically catered to the export market. The future seems pretty bright for US exports in 2014 and beyond.
