US Dairy Product Exports Growing Since 2004

After years of near balance between the total quantity of US dairy imports and exports, exports of US dairy products in 2004 and 2005 leapt ahead of imports during the same time period, according to the International Dairy Foods Association (IDFA).

The total quantity of US dairy exports grew by 35% in 2004, and by a further 15% in 2005. Importantly, since early 2004, these exports have been prompted without US government subsidies through the Dairy Export Incentive Program. The increase in US dairy exports has far outpaced the increases in dairy product imports, which grew by 5% in 2004 and 7% in 2005 through October each year.

The value of US dairy exports is also growing faster than the value of imports. Through October 2005, US dairy product exports totaled nearly $1.4 billion, up 20% over the same period in 2004. US imported dairy product value in the same 2005 time period increased only 11%, to $2.1 billion.

The top six countries receiving US dairy products in 2005 include the nation’s two continental neighbors, with $419 million of exports going to Mexico and $181 million to Canada. Other destinations with more than $50 million in US exports include Japan, Philippines, Indonesia and China.

This growth of US exports comes during a time when world prices for dairy products are on the rise. The annual average world price for skimmed milk powder has been above both the US dairy support price and the benchmark price for West Coast nonfat dry milk for the past two years.