US skim milk powder output forecast to grow in 2024
Forecasts say output will grow by 11%
17 January 2024
1 minute read
By: Skim milk powder output in the United States is forecast to grow 11% in 2024 to 1.30 million tons, reflecting higher milk production and relatively large supplies of skim milk for drying, according to a recent US Department of Agriculture (USDA) Global Agricultural Information Network (GAIN) report.
Exports are slated to grow 3% to 838,000 tons, a reversal from the modest decline in exports in 2023, reflecting larger exportable supplies and recovery in shipments to price sensitive markets in East and Southeast Asia.
The gap between US and EU prices has narrowed to parity over the course of 2023 and is expected to skew in favour of US exports in 2024.
In November, EU prices for skim milk powder were quoted at $1.36/ pound FOB while the US price for Western low-medium heat NDM FOB was quoted at $1.21/pound.
In 2024, exchange rates are also forecast to shift in favour of US exports as the US Federal Reserve is expected to cut interest rates, improving purchasing power for US dairy commodities, especially in a period of global economic uncertainty.
