Historically, US dairy exports tend to decline seasonally in the second half of the year. However, the reported export figures during July and August in 2021 indicate a different trend. In August, US dairy exports for milk solids reached 198,032 tonnes, up 12.6% year-on-year, which equates to an increase of 22,146 tonnes. In value terms, US exports reached USD 141 million, up 25.9%, an additional USD 141.8 million compared to the same period last year. The higher rise in value of US dairy exports was attributed to the significant export growth of higher-value-added dairy ingredients such as WPC+80, casein, and infant formula, with a year-on-year volume growth of 21.9%, 96.1% and 19.5% respectively.
In addition, export volume increased for cheese (+18.1%, +5,599 tonnes) and butterfat (+150.5%, +2,931 tonnes). The main driving factors for US dairy export success include high demand from Latin America, whose shipments are transported via land border with Mexico or through the Gulf, avoiding the West Coast port congestions. In addition, the weak USD against the EUR and NZD, together with a competitive US dairy prices, particularly for cheese. Cheddar prices stood at USD 3,481/MT on the week of 25th August, down by USD 328/MT against the EU cheddar price and down by USD 703/MT against the New Zealand counterparts.