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The North America dairy market is led by the United States of America. In 2017, 90% of the total milk output in North America was produced by the US. The sustained growth of milk production in the US is aided by the growing dairy herd with almost 9.3 million dairy cows available in the first half of 2017. Even with the reduction in the number of cows in 2018, milk production witnessed a growth of 1.1% as compared to 2017, attaining a volume of 97,730 thousand tonnes. Thus, the US milk production is witnessing a continuous rise, with an annual increase of 1-2% each year. Despite the trade war with China, US exports have been rising due to the growing milk production in the country.
The US is one of the leading exporters of dairy in the world. As of October 2018, the US exported 70% of its SMP stock, an increase of 15% from 2017. The US also exported the majority of its lactose production, exporting 81% of its lactose produced between January to October 2018. Mexico is a major export destination for the US dairy market. In October 2018, Mexico imported USD 128.8 million worth of US dairy products, which was an increase of 25% from 2017. Southeast Asia and Canada are also significant importers of US dairy products.
Canada is also a major player in the North America dairy market, which too witnessed a rise in its milk production. In 2017, milk production in Canada increased by 5%. It saw a further growth in 2018 as the milk output grew by 3.7% as compared to 2017. This rise in milk output in Canada was driven by government-led schemes like National Ingredient Strategy and the mounting production quotas allocated under the managed production schemes. However, Canadian dairy farmers fear that the new trade deal with the US might hinder the healthy growth of the Canada Dairy Market. Under United States-Mexico-Canada Agreement (USMCA), the US gets a 3.6% tariff-free access to the dairy market in Canada while doing away with the Class 7 scheme in Canada which regulated dairy product prices like the prices of skimmed milk powder.
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Nestlé USA, Inc, Dairy Farmers of America, Inc., Danone S.A., Land O'Lakes, Inc., The Kraft Heinz Company , Agropur Cooperative, Lactalis Group, Inc. are the major players in the North America dairy market considered by EMR. The EMR report gives an in-depth insight into their market share, capacity and latest developments like mergers and acquisitions, expansions of capacity, and plant turnarounds.
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