In recent developments within the dairy industry, there has been a notable resurgence in export interest, particularly in cheese, marking a significant shift from earlier trends this year. Andy Faulman, dairy analyst from ever.ag, highlighted these positive developments during a recent discussion. “We’re starting to gain some interest in dairy exports,” he remarked. “Year-to-date cheese exports have been the highest we’ve seen in over a decade.”
The uptick in cheese exports is attributed to competitive pricing earlier in the year, which bolstered the industry’s global competitiveness. “We were really competitive with respect to the rest of the world, which allowed us to move quite a bit of cheese,” he explained. This increase in exports has also influenced market dynamics, pushing cheese prices upwards. “Cheese prices have climbed over two bucks, and it seems like something that’s here to stay,” Faulman observed.
However, challenges persist in domestic milk production, which could impact future supply dynamics. “Domestically, we’re facing challenges in milk production,” he says. Recent data indicates a downward trend in production, a concerning factor as demand continues to grow. “The best bull markets occur when there’s increasing demand coupled with decreasing supply,” he emphasized.
Moreover, the fluctuating value of the Mexican peso has also caught attention, influencing export prospects. “As the peso strengthens against the dollar, Mexico’s ability to import dairy products becomes more favorable,” he explained. Despite recent fluctuations due to political changes, ongoing export stability remains a priority for the dairy sector.
