U.S. Dairy Exports Continue to Slow, Butter Exports Decline…
According to USDA, the total value of all U.S. dairy exports in May ’14 fell for the second straight month, declining by 4.8% MOM on a daily average basis. The trend of YOY increases continued, with the total value of all U.S. dairy exports up 8.9% YOY, however the YOY increase was the smallest in 14 months.
May ’14 export volumes of butterfat were particularly weak, declining 39.1% MOM and 7.5% YOY. Butterfat export volumes of 11.7 million lbs declined by 7.6 million lbs MOM, the largest monthly decline in over five and a half years. U.S. butter prices traded at a premium to Europe butter prices when adjusted to 80% butterfat for the first time since October 2012 in May, reducing export demand. May ’14 U.S. butter prices traded at a 3.8% premium to Europe and a 17.7% premium to Oceania. Recently, the spreads have increased, with U.S. butter prices trading at a 6.3% premium to Europe and a 21.6% premium to Oceania throughout June. MOM declines were most prevalent in Northern Africa, with export volumes of butterfat to Morocco, Egypt and Algeria declining from 7.2 million lbs in Apr ’14 to 2.3 million lbs in May ’14. The decline in MOM exports to Northern Africa accounted for 65% of the overall MOM decline.
May ’14 export volumes of cheese were also down MOM on a daily average basis, but increased YOY. Cheese export volumes of 67.8 million lbs continued to decline from recent highs experienced in March ’14, but remained 15.5% higher than a year ago. Cheddar cheese exports were particularly strong on a YOY basis, increasing 52.8% YOY. Cheese exports to South Korea, Japan and Mexico remain strong, accounting for over half of total shipments for the fourth straight month.
May ’14 export volumes of NFDM/SMP reached a new all-time high of 128.8 million lbs, increasing by 9.9% MOM, 7.8% YOY, and 5.8% over the previous record export volume shipped in Apr ’13. Over two thirds of May shipments were destined to Southeast Asia and Mexico. NFDM/SMP exports to Mexico were particularly strong, increasing by 73.2% MOM and 57.9% YOY.
See the table below for a summary of key U.S. dairy product exports as a percentage of production in May ’14.
May ’14 export volumes of butterfat were particularly weak, declining 39.1% MOM and 7.5% YOY. Butterfat export volumes of 11.7 million lbs declined by 7.6 million lbs MOM, the largest monthly decline in over five and a half years. U.S. butter prices traded at a premium to Europe butter prices when adjusted to 80% butterfat for the first time since October 2012 in May, reducing export demand. May ’14 U.S. butter prices traded at a 3.8% premium to Europe and a 17.7% premium to Oceania. Recently, the spreads have increased, with U.S. butter prices trading at a 6.3% premium to Europe and a 21.6% premium to Oceania throughout June. MOM declines were most prevalent in Northern Africa, with export volumes of butterfat to Morocco, Egypt and Algeria declining from 7.2 million lbs in Apr ’14 to 2.3 million lbs in May ’14. The decline in MOM exports to Northern Africa accounted for 65% of the overall MOM decline.
May ’14 export volumes of cheese were also down MOM on a daily average basis, but increased YOY. Cheese export volumes of 67.8 million lbs continued to decline from recent highs experienced in March ’14, but remained 15.5% higher than a year ago. Cheddar cheese exports were particularly strong on a YOY basis, increasing 52.8% YOY. Cheese exports to South Korea, Japan and Mexico remain strong, accounting for over half of total shipments for the fourth straight month.
May ’14 export volumes of NFDM/SMP reached a new all-time high of 128.8 million lbs, increasing by 9.9% MOM, 7.8% YOY, and 5.8% over the previous record export volume shipped in Apr ’13. Over two thirds of May shipments were destined to Southeast Asia and Mexico. NFDM/SMP exports to Mexico were particularly strong, increasing by 73.2% MOM and 57.9% YOY.
See the table below for a summary of key U.S. dairy product exports as a percentage of production in May ’14.