Dairy Exports Expected To Increase $500 Million in 2017
The United States Department of Agriculture is expecting U.S. agricultural exports to grow by $1 billion in fiscal year 2017, according to its Outlook for U.S. Agricultural Trade report released this week.
“Dairy is increased by $500 million to $5.3 billion as key milk-producing countries reduce milk output, leading to higher global prices, and U.S. exports are expected to expand,” reports USDA.
The $500 million rise in dairy exports equates to 50% of the gain in overall U.S. exports, which are expected to rise to $134 billion in 2017.
Despite the convergence of U.S. and world dairy prices, which make U.S. cheese and milk powder more competitive on word markets, USDA expects dairy imports to rise $200 million in 2017 as well.
The top-three U.S. trade partners in agriculture are China ($21.8 billion), Canada ($21.3 billion) and Mexico ($18.3 billion). Trade with all three could come under scrutiny with the incoming Trump administration, which has vowed to re-negotiate trade agreements with all three countries.