The USDA’s forecast is that a demand from overseas will boost the dairy industry sales by 7 percent this year, to a record $43.1 billion, according to Bloomberg News.
According to the USDA while exports are rising, domestic demand is shrinking, with the consumption of milk down 25 percent since 1975.
A dairy economist at the University of Wisconsin-Madison, Bob Cropp, reported that “Dairy products are still a relatively good buy,” but also shared that, according to Bloomberg News, “The market will sustain a higher price than it used to.”
The international sales manager for Grassland Dairy Products Inc., based in Greenwood, Wisconsin, Greg Rodriguez, said that “As the recession has eased, we’re seeing an uptick for certain categories.” Rodriguez also stated that “Demand for butter has been very strong this year.”
Changes in the dairy industry has varied across the United States over the
past several decades. Vice president of global ingredient sales for Agri-Mark Inc., Peter Gutierrez says, “Dairy farmers are making the best money they’ve made in many, many years.”
USDA.gov has reported that international demand remained strong in 2013 with U.S. exports achieving another record. Most dairy products had double digit increases in exports with cheese increasing almost 22 percent, nonfat dry and skim milk powders increasing 25 percent, and butter increasing 87 percent.
During 2013 the U.S. exports set a new record. During the last few years the world dairy market saw exceptional demand from China and other countries. With international demand outstripping supplies of the traditional exporting countries the United States has become an important supplier to the world market. With both global populations and national incomes also projected to increase, international dairy demand is projected to grow as well. The U.S. Is well positioned to play a major role in supplying international markets, but expected increases in production by competing exporters is also expected to intensify the competition in the coming year.
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