U.S. Dairy Exports on the Rise

According to the U.S. Dairy Export Council's (USDEC) 2007 and 2006 Annual Reports, U.S. dairy suppliers exported more than 2.19 billion pounds of milk solids this past year,4.7% more than in 2006 and a new record. The USDEC also reports that "since 2003, U.S dairy exports are up 77 percent by value and 75 percent by volume." 1 As a result, exports now represent 9.5 percent of U.S. milk solids output. 2 Since 2006, dairy export volume has been more than double that of imports. 3

These statistics reveal that the U.S dairy industry is becoming increasingly global. Mexico and Canada have long been the largest markets for U.S. dairy exports. However, new markets have been emerging in developing countries that have been experiencing rapid economic growth. China, for example, has been increasing it's dairy consumption at a rate of 15% per year. 4 Further driving exports is the ailing U.S. dollar and the elimination of certain EU export subsidies. 5 Finally, globalization of the U.S. dairy industry can be attributed to the development of new uses for dairy ingredients such as whey proteins and lactose, as shown by the graph below.

1 USDEC Annual Report, (2006), p. 20. http://usdec.files.cms-plus.com/Publications/USDECAR2006.p

2 USDEC Annual Report, (2007), p. 2. http://usdec.files.cms-plus.com/PDFs/USDEC2007AnnualReport.pdf

3. USDEC Annual Report, (2006), p. 20

4. USDEC Annual Report, (2006), p. 4

5 USDEC Annual Report, (2007), p. 4