U.S. dairy exports posted their strongest month of growth in a year and a half In July, climbing 9.6% year-over-year in milk solids equivalent terms (MSE).

In contrast to prior months, where cheese and high protein whey products were the only products posting significant growth, gains were made across multiple categories in July. In particular, low-protein whey has become the star of the show after lagging throughout 2023, gaining 27% in July (+8,864 MT) and marking the fourth consecutive month of growth. Not to be outdone, despite declines in production, NFDM/SMP surprised by increasing 11% (+7,075 MT) for the month. Cheese and high protein whey also maintained momentum, growing 10% (+3,516 MT) and 23% (+1,310 MT), respectively.

July’s strong export growth is a welcome signal after an up-and-down first half of the year, but weaker comparisons certainly played a part in explaining why July’s figures were particularly robust. July 2023 was the weakest month of the year last year with whey figures for the month being the lowest since October 2019, when U.S. exports to China were still subject to retaliatory tariffs and the country was still suffering from the worst of the African Swine Fever outbreak. As such, the 10% gain in July appears slightly less impressive upon closer examination.

Yet even with that caveat, July can still be described as a positive month given the breadth of other bullish signals, namely: low-protein whey trade has grown four straight months to China and 10 out of the last 11 months Southeast Asia; cheese sales to Mexico continued to soar even with a weaker peso (+45%, +5,451 MT); and WPC80+ sales continue to expand to both established and emerging protein markets.

Overall, U.S. dairy exports remain remarkably stable despite global headwinds with gains continuing to be made in multiple products, especially in cheese and whey proteins.

Source: U.S. Dairy Export Council