Tariffs have been dominating the news, and the uncertainty of the impact of those tariffs on dairy export demand. For the present, it seems the only impact of certainty is China. Tariffs on U.S. imports have been implemented across the board. China is the largest importer of whey, whey protein concentrate +80, and lactose from the U.S., and could have a significant impact on those prices. Whey is a significant part of the Class III milk price calculation. It will be interesting to see whether increased demand may come from other countries.

Butterfat Exports Surge Amid Global Price Gap

Butterfat exports have increased dramatically recently, with February increasing by 5,979 metric tons or 224.5% over February 2024. Butterfat exports in February totaled 8,642 metric tons. This is the biggest monthly exports since April 2014. The reason for this is that the U.S. price is substantially under the world price.

The latest Global Dairy Trade auction showed an average butter price of $3.45 per pound. This compares with the butter price of $2.3475 per pound on April 11^th. But not only does that show a large difference, making it attractive to international buyers, but the average price of butter in Oceania in March was $7,548 per metric ton or $3.43 per pound compared to $7,294 per metric ton in February. The average price in March 2024 was $6,465 per metric ton or $2.94 per pound. There are a total of 14 countries that are within Oceania. These 14 countries include Australia, Papua New Guinea, New Zealand, Fiji, the Solomon Islands, Federated States of Micronesia, Vanuatu, Samoa, Kiribati, Tonga, the Marshall Islands, Palau, Tuvalu, and Nauru.