US Dairy Market Aided by 1.2% Increase in Milk Production in 2020.

The US dairy market was driven by the increasing exports of dairy products. The U.S. dairy exports of dairy products like milk powders, butterfat, cheese, whey and lactose increased by 20% in the Q1 of 2020 as compared to 2018 to reach 1.14 million tons. The robust growth in the export of US dairy products was a result of the increasing demand for major US export products like skim milk powder, cheese, lactose, and whey. Thus, decreasing domestic sales of dairy were balanced by the demand from the overseas market. The increase in SMP stock led to an increase in its export to regions like Southeast Asia, China, and Mexico.

The renegotiated trade agreement called USMCA, which will be replacing NAFTA, between the US, Canada and Mexico will provide further impetus for the expansion of trade in the US. Under the new trade deal, US will be allowed 3.6% tariff-free access to the Canadian dairy market, leading to an increase in the export of dairy products like cheese, milk, and others.

Regionally, the California dairy market is recovering after the drought between 2011 and 2017, and heavy rains and flooding in early 2017. The milk production in California saw an increase of over 2% in 2018, as compared to 2017. The Wisconsin dairy market saw an expansion in its milk production despite the drought. 

In December 2018, Dairy Farmers of America (DFA) announced its acquisition of Agropur’s St. Paul, Minnesota facility. The acquisition will increase the cooperative’s extended shelf-life capabilities while diversifying its product portfolio. The St. Paul plant manufactures a wide array of dairy products ranging from fresh to extended shelf-life to aseptic dairy products for renowned organic milk brands and grocery store chains.

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Market Analysis by Types and Regions:

• Fluid/UHT/flavoured milk, cream, butter, anhydrous milk fat (AMF), skimmed milk powder/non-fat dry milk, whole milk powder, whey protein (powder and concentrate), lactose, casein, cheese, yoghurt, ice-cream, and probiotic dairy products are the common dairy products available in the US dairy market.
• Regionally, the report analyses the Northeast US, Midwest US, Northwest US, Southeast US, South Central US, and Southwest US dairy markets.

Key Findings of the Report:

• The US dairy market accounted for 19% of the global supply of dairy in 2020, witnessing a 2% increase from 2018. 
• The increase in the US dairy exports was driven by the rising markets shares of US sellers of dairy products.
• The Southwest and Mountain states of US led the dairy market in the country in the second quarter of 2018. 
• The rising economic growth of the major importing countries is adding to the growth in the US dairy export.
• In Q1 of 2018, regions like the Middle East and North Africa increased their US dairy products import due to a decline in the dairy prices. 
• Decreasing demand for China dairy has also led to a rise in the demand for US dairy from Southeast Asian buyers.

Key Offering of the Report:

• The EMR report analyses the historical (2018-2023) and forecasted (2024-2032) market for the global as well as US dairy markets.
• The report also looks into the production of raw milk in the US for the periods (2018-2023) and (2024-2032).
• It provides detailed historical (2018-2023) and future (2024-2032) markets for dairy products in the US as well as its regional markets.
• It offers an analysis of the global trade data for the year 2018 by looking into the value and volume of the major exporting and importing countries.
• The report for EMR gives an in-depth insight into the regional historical (2018-2023) and forecasted (2024-2032) price trends.

Nestlé USA, Inc, Dean Foods Company, Danone S.A., Dairy Farmers of America, Land O'Lakes, Inc., The Kraft Heinz Company, Schreiber Foods Inc., and California Dairies, Inc. are the key players in the US dairy markets that have been analysed in the EMR report. The EMR report provides an in-depth look into the market share and capacities of these major players along with their latest developments like mergers and acquisitions, capacity expansions, and plant turnarounds.

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