According to the latest dairy market report, the record exports last year indicate U.S. dairy's global reach. It shows 2022 ended with U.S. dairy exports setting a second consecutive record for percent of domestic production exported during an entire calendar year, with 17.8 percent of U.S. milk solids production exported.
That helped temper sluggish domestic consumption; while the year's final quarter saw the strongest quarterly annual growth of domestic American-type cheese consumption since the first half of 2021. That came even as overall domestic use of all dairy products was below year-ago levels on a milk equivalent basis. U.S. dairy cow numbers were up over year-ago levels by just under 30,000 cows each month during the fourth quarter, while U.S. milk production growth, which resumed last July, has done so at a steadily diminishing rate from August onward.
The December DMC margin was $9.76/cwt, down $1.13/cwt from the month before, driven mostly by a $0.90/cwt fall in the U.S. average all-milk price, to $24.70/cwt. For all of 2022, the DMC margin fell below the highest coverage level of $9.50/cwt during just two months, as record high feed costs were generally topped by record high milk prices.
U.S. average retail prices for fluid milk, both whole and lowfat, and for natural cheddar cheese dropped in January from a month earlier. DMC margins are expected to be lower in 2023.
More of this report can be found on the National Milk Producers Federation website.
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