Up to Date with USDEC
Up to Date with USDEC: Exclusive Edition
May 6, 2020
U.S. Dairy Market Update
In the U.S. and around the world, the impact of covid-19 remains the predominant topic of conversation and the driving force behind global dairy markets. In the U.S., demand for dairy products going to foodservice-restaurants, hotels and catering businesses-has fallen dramatically as stay-at-home orders remain in effect for most of the country. Prior to covid-19, around 40% of butter and cheese produced in the United States went into domestic foodservice. A surge in retail demand as shoppers shifted to eating at home has been welcome, but it has not been enough to offset the decline in foodservice consumption.
This led to a sharp downturn in cheese and butter prices. Roughly 94% of U.S. cheese and 96% of U.S. butter are sold to the domestic market, so severe shocks to domestic demand have a strong impact on butter and cheese prices. (U.S. NDM/SMP and whey are generally geared toward the international market, so those prices are governed by international supply and demand fundamentals.)
The covid-19 disruption to U.S. foodservice combined with strong U.S. spring milk production resulted in an oversupplied market. As such processors, cooperatives and farmers could not always find markets for their milk. Some milk was diverted to more storable products, but in many cases, the milk needed to be dumped as a last resort. However, U.S. dairy is still readily available for export markets and shipping logistics continue to run relatively smoothly.
U.S. Dairy working 24/7, 365 days a year
Resilience has long been a characteristic of U.S. dairy farmers and processors. It can be seen again in their approach to COVID-19. Read about their dedication and commitment to delivering quality milk and dairy products before, during and after a pandemic at National Milk Producers Federation (NMPF) social media campaign #dairyneverstops.
Vilsack outlines the U.S. Dairy challenge and USDEC export plans
Tom Vilsack, USDEC President and CEO, and former U.S. Secretary of Agriculture under President Obama, talked with U.S. media in April about how COVID-19 is affecting the U.S. dairy industry and USDEC business plans. During a podcast with Agri-Talk, Secretary Vilsack emphasized U.S. Dairy was ready, willing and able to continue serving export and domestic markets. Hear an excerpt of his interview here.
Earth Day elicits U.S. dairy sustainability record
The 50th anniversary of Earth Day on April 22 proved an ideal backdrop to review the U.S. Dairy's unmatched sustainability credentials. The U.S. Dairy Spotlight story, "U.S. Dairy Delivers Sustainable Nutrition," explains how U.S. Dairy is dedicated to caring for the planet while feeding the world. The U.S. Dairy Export Council has also developed a new brochure detailing U.S. dairy farmers' unwavering commitment to responsible production practices and continuous improvement across the value chain, demonstrating positive impact from farm to table.
USA Cheese is going social
The USA Cheese Guild - created by USDEC as an educational resource hub - has launched a new social media campaign dedicated to building the fanbase of "Cheese from the USA" consumers in 10 countries around the world. With over 20 different social media accounts globally, we are bringing consumers top of the line content showcasing the variety, versatility, craftsmanship and innovation of the U.S. Cheese community. We encourage you to follow our global feeds as well as your respective local one to learn more: Global Accounts @USAcheeseGuild: Instagram; Facebook; LinkedIn.
Keeping tabs on evolving import requirements
USDEC's Market Access & Regulatory Affairs (MARA) team and overseas offices are monitoring global markets and compiling all market changes as they occur to expedite U.S. dairy shipments and get products to those who need them. At least 14 markets have temporarily revised import regulations in recent weeks to facilitate food security during the coronavirus crisis. They include Australia, Colombia, Costa Rica, the European Union, Egypt, Indonesia, Switzerland, Kuwait, Oman, Qatar, the Philippines, South Korea, Taiwan and Thailand.
Please contact your local USDEC Representative.