Domestic Dairy Demand – Dec 15
U.S. dairy exports have declined throughout recent months due to numerous reasons including diverging U.S./international dairy product prices, the expiration of the EU-28 milk production quotas, reduced Chinese dairy demand, the Russian dairy import ban and a strengthening U.S. dollar. The potential for continued subdued international dairy demand is an ominous sign for domestic producers as export demand for domestic product has become increasingly important throughout the past several years. Domestic commercial disappearance of dairy products has remained moderate, and the trend of declining fluid milk sales will be difficult to break, however continued strong consumption of high milk-fat dairy products may push currently oversupplied markets towards equilibrium. Please contact us if you would like to learn more about our dairy research products, including the current report that provides an overview of the implications of declining New Zealand milk production.