International Summary
World dairy market prices in 2010 recovered from the lows attributable to the global financial crisis in
2009. World prices for butter set record highs in 2010, with an average of $4,617 per metric ton in Europe
(35.7% higher than last year) and $4,045 in Oceania (72.3% higher than 2009). World prices for skim milk
powder, cheddar cheese and whey powder were all much higher in 2010 than in 2009. These strong world
dairy market prices continued into 2011.
U.S. exports of dairy products increased by 38.9% in volume and the higher world dairy market prices
contributed to a 65.1% in dairy export value in 2010 compared to a year earlier. Every category of dairy
products saw an increase in both dollar sales and volume except for fluid whey products and casein
products. Leading U.S. dairy product exports by value include nonfat dry milk (with over $1 billion in 2010
export sales), cheeses (nearly $700 million) and whey products (over $600 million). However, other product
categories experienced large percent increases in exports in 2010, including condensed and evaporated
milk, dry whole milk and cream and butter products.
In recent years, the U.S. has become a major commercial dairy product exporter. In 2010, U.S. exports
accounted for over 25% of world trade in skim milk powder, 8.7% of world butter trade and 7% of world
cheese trade. As a percent of domestic production, U.S. exports of nonfat dry milk (skim milk powder in the
rest of the world) accounted for nearly 47%, and dry whey and lactose products amounted to about two-thirds
of domestic production of these items.
Meanwhile U.S. dairy product imports experienced a decline in volume of 7.7%, and the higher world dairy
market prices only resulted in an increase in U.S. dairy import value of 1.4%. In particular, imports of
cheese, the product category with the highest dairy import value, fell 14.4% by volume and 3.7% in value.
