By Alan Levitt, U.S. Dairy Export Council
When discussing global demand, China and Russia have received most of the attention over the last year. But while those two have pulled back, imports from other key buyers have increased in 2015. In the first half of the year, world imports outside of China and Russia were up more than 10 percent vs. a year ago.
Purchases from key buyers such as Japan, Mexico, Malaysia, Egypt and the Philippines are all up by double-digits this year. In many cases, importers who were squeezed out of the market in 2013-14 by very high prices have been able to come back and procure at a significant discount.
However, while the boost in imports from this segment of buyers is encouraging, we believe a portion of these purchases has gone to build pipeline holdings. In many cases, buyers are now comfortably covered into 2016, which may mitigate the need to buy as aggressively in the months ahead.
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The U.S. Dairy Export Council fosters collaborative industry partnerships with processors, trading companies and others to enhance global demand for U.S. dairy products and ingredients. USDEC is primarily supported by Dairy Management Inc. through the dairy farmer checkoff.