Following significant declines in export volume and dollar sales during 2009, total U.S. dairy export volumes are off to a record pace during the first six months of 2010. Tremendous increases in exports to Asia helped lead to a 39-percent increase in total export volume and a 69-percent increase in export value compared to year-ago levels.

The total volume of non-fluid dairy products exported during the first six months of 2010 was 1.655 billion pounds, while total U.S. imports of non-fluid dairy products reached 661.3 million pounds, the lowest first-half import volume level since 2001. The 994.3 million-pound trade surplus represents the largest first-half surplus on record; nearly 194.3 million pounds higher than the previous record set in 2008. This large difference between quantity exported compared to quantity imported helped lead to a $564.4 million trade surplus for U.S. dairy products.

Dry whey and related products accounted for the largest export volume share during the first half of 2010. Total dry whey and related product exports were 524.6 million pounds, an increase of more than 40 percent compared to year-ago levels. Total nonfat dry milk export volume increased nearly 45 percent compared to year-ago levels, with total exports equaling 347.2 million pounds. Lactose remained the third-largest dairy export during the first of the year, with 266.9 million pounds exported (17.2 percent higher than year-ago levels). Total exports of cheese and curd products were 178.0 million pounds, a 60.7 percent increase compared to year-ago levels.

The total export value of nonfat dry milk during the first half of 2010 was $419.9 million, which is dramatically higher than year-ago levels (90.7 percent). Cheese and curd ($322.4 million) and dry whey and related products ($314.8 million) experienced export value increases in excess of 60 percent during the first six months of 2010 compared to year-ago levels. Lactose exports went from $56.3 million during the first half of 2009 to $116.2 million in 2010, an increase of 106.4 percent.

Mexico was by far the largest importer of U.S. dairy products during the first half of 2010. U.S. exports to Mexico totaled $344.5 million between January and June, a 10-percent increase compared to the same period in 2009. Canada imported $190.7 million in U.S. dairy products, an 18-percent increase over year-ago levels.

Exports to China totaled $112.9 million, an 85-percent increase over year-ago levels. Other top importers of U.S. dairy products in terms of dollar value were Japan at $98.3 million, Indonesia at $97.3 million and the Philippines at $85.8 million. Export revenues to both Indonesia (+231 percent) and the Philippines (+176 percent) increased dramatically during the first half of 2010 compared to year-ago levels.