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Milk Exports Soar in August


While egg exports languish, the U.S. Dairy Industry enjoyed a bumper August.  According to the U.S. Dairy Export Council, a total of 190,000 tons of milk powder, cheese, whey, lactose and butter fat was shipped representing a record. Exports were up 11 percent up for the month compared to August 2019 and up 14% year to date.  The dairy industry anticipates exporting products to the value of $6 billion in 2020.  Michael Dykes, President and CEO of the International Dairy Foods Association (IDFA) stated, "volatility and uncertainty remain a factor in the dairy market and trade, but IDFA remains optimistic that with continued demand for dairy around the world especially in South East Asia and China, 2020 will end on a high note".  Dykes ascribed the increase in exports to China to the Phase One Trade Agreement. Essentially the purchases represent their need and have little to do with an agreement that was concluded on the basis of political expediency


Whey exports were up 29 percent with most of that increase due to buying by China as it rebuilds hog herds.  August shipments to China attained 17,000 tons up, 318 percent from August 2019.  The increase to China was offset by it declines to the rest of Southeast Asia and Mexico that was down 60 percent.


In contrast to the dairy industry year-to-date through August shell egg exports attained 94.9 million dozen valued at $79 million. Egg product exports rose to 25,784 metric tons valued at $69.8 million for a total of $148.4 million. On an annualized basis egg exports by the egg industry are approximately 4 percent of the value of dairy products shipped.