The U.S. Department of Agriculture is expecting exports to grow larger by $1 billion in 2017 with dairy exports taking up a big chunk of that growth. The latest USDA export projection report expects dairy to grow by $500 million dollars to $5.3 billion.
Other dairy-exporting countries are expecting to reduce their outputs in 2017 which will lead to higher prices around the globe and higher U.S. exports. The $500 million gain in dairy exports will make up about half of the overall growth in U.S. exports next year.
Overall, exports are expected to total $134 billion next year. The expected convergence of dairy prices in the U.S. and around the world will make American dairy products more competitive overseas.
USDA does expect dairy imports into America to rise $200 million in the coming year. The top three U.S. agricultural trading partners are China, Canada, and Mexico.
However, trade is uncertain going forward as the incoming Trump administration has vowed to renegotiate trade agreements with all three countries.
(From the National Association of Farm Broadcasters News Service)