DENVER, CO – Over the past decade, U.S. milk production has increased by an average annual growth rate of 1.5 percent while domestic demand has increased at a slightly slower pace. In recent years, the U.S. has exported about 15 percent of its production, with Mexico traditionally the main export destination by volume.
According to Tanner Ehmke, Lead Economist for Dairy Production and Processing with CoBank, Southeast Asia became the top destination for U.S. dairy exports last year by volume after years of posting the strongest annual import gains in the world for U.S. dairy products. With Southeast Asia’s population and economy growing steadily, the momentum portends still greater export opportunities ahead for U.S. dairy producers and processors.
U.S. milk production continues to expand faster than domestic demand but with a growing population and rising middle class, Southeast Asia is the biggest growth opportunity for U.S. dairy exporters. Other major dairy exporters, specifically Oceania and the EU, face production headwinds, potentially enabling the U.S. to capture market share. So, to successfully compete in the vast Southeast Asian market, the U.S. must work to lower trade barriers while U.S. processors must invest in manufacturing technology to adapt to diverse and evolving dairy consumer needs.
(SOURCE: All Ag News)