EXPORTS OF TOTAL DAIRY PRODUCTS FROM THE UNITED STATES
Bureau of the Census data for the first 5 months of 1999 show that the pace of U.S. dairy product exports is running behind that of 1998. For the first 5 months of 1999, the total value of dairy exports was $347 million compared to $388 in the same period of 1998. On a product basis, most of the decline is due to the reduced value of butter and whole milk powder exports under the Dairy Export Incentive Program (DEIP). Most exports of butter and butteroil, nonfat dry milk, and whole milk powder (WMP) are made with DEIP assistance. Census data show the quantity of NDM exports up but that the value is down due to lower international prices.
For commercial products, thus far in 1999, infant foods and other dairy based foods have shown the most growth on both a value and quantity basis. Most other dairy products such as cheese, ice cream, dry whey products and lactose are lagging or just maintaining last years pace. Fresh milk and condensed milk exports have dropped significantly below last years pace
On a regional basis, the value of shipments to the two major U.S. markets, Mexico and Japan, are both down. In Mexico, the decline is mainly due to commercial shipments as the three major DEIP products largely offset, i.e. butterfat and WMP are down while NDM is up.
On the commercial side, most categories are lower with fresh milk sales declining from $8.5 million in 1998 to $2.4 million this year. In Japan, ice cream was the main loser with both quantity and value down, declining from $18 million in Jan-May 1998 to $14 million in 1999. The values of whey and lactose shipments to Japan also were below the 1998 pace for the first 5 months of the year.
As a region, dairy product exports to Asia (excluding Japan) are up with Korea, the Philippines and Indonesia showing strong growth. The value of sales to China and Hong Kong are essentially the same as in 1998.