Markets or Marketing?

In the midst of record low milk price in real dollar terms, there is a nearly daily reminder of how much U.S. dairy exports have fallen. The pundits, to a person, all point to the world financial crisis, saying the markets have dried up.

The U.S. exports in the 12 months ending in April 2009 were actually off 15 per cent in dollar terms.

Meanwhile, New Zealand in the same time period (YTD April 2009) increased their exports of milk powder, butter and cheese 4.8 per cent. The dollar value of casein and caseinate exports increased 15.6 per cent from NZ.

While NZ dairy farmers are in something of a bind right now, it is nothing like the situation the U.S. dairy farmer is in.