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Dairy Market Trends – Cheese remains a bright spot

By Laura Ginsburg, VT Agency of Agriculture, Food & Markets                             (Photo Courtesy: US Dairy Export Council)

The headline of the August 2, 2019 Dairy Exporter Blog is eye catching: “U.S. dairy export volume down 14% in H1-2019”. After years of low prices and tumultuous markets over the more recent past, another downturn headline is the last thing anyone wants to see. Reading into the article, however, shows that even in a downturn there are bright spots.

The overall value of U.S. dairy exports grew for the third straight year, and non-Chinese markets are strengthening, including Southeast Asia, South Korea, and South America. Despite trade negotiations and the potential U.S.-Mexico-Canada agreement yet to be ratified, our neighbors to the north and south also purchased greater amounts of U.S. dairy products.

Cheese exports are currently at the highest level since 2014 with record volumes going to South Korea, Central America, and Southeast Asia, in addition to growing sales to the Middle East and North African region.

Vermont cheesemakers are well-positioned to take advantage of growing export opportunities as the state produces a number of international award-winning cheeses that also have high levels of consumer trust and brand transparency. In late June, Spring Brook Farm and Cabot hosted a specialty cheese mission with over 12 buyers from the Middle East to deepen connections and show off the high-quality cheeses produced in our state. Buyers were impressed with the quality, diversity, and commitment to excellence. One buyer from Saudi Arabia, whose clients include hotels, restaurants, and supermarkets, was quoted as saying, “I think U.S. cheeses are better than the French, Belgian and even the Italian cheeses.”

While shipping cheese overseas may not be the first market in mind for many producers, it can be a viable option particularly as new markets continue to develop their taste and preferences for specialty cheeses. The Development Division has connections to export resources and can offer trade show funds for those who are ready to explore a new opportunity.

For more information, please contact Laura Ginsburg via email laura.ginsburg@vermont.gov or by phone 802.522.2252