Milk Price Hits Record on Surging Demand for U.S. Dairy Exports
Milk futures in Chicago jumped to an all-time high Monday, as surging U.S. dairy exports depleted supplies available for domestic consumers.
Shippers sold 162,999 metric tons of milk powder, cheese, butterfat and whey in January, up 19 percent from a year earlier, according to the latest data from the U.S. Dairy Export Council. Almost 15 percent of milk production went to exported goods, up from 12 percent a year earlier, the group said. Cheese shipments climbed 46 percent.
A rise in global demand for U.S. dairy goods comes as a drought threatens output in California, the nation’s top producer. Milk prices have jumped 21 percent this year, signaling higher costs for consumers and restaurants such as Domino’s Pizza Inc. and Potbelly Corp., while the cost of cheddar cheese also reached a record Monday.