A strong U.S. dollar, weakened foreign economies and record-high U.S. dairy prices failed to dampen an increase in many U.S. dairy product exports in 1998.  "Especially strong gains" were posted for cheese, whey proteins, lactose and ice cream to key markets such as Mexico, Japan and China, says the U.S. Dairy Export Council.

"What makes these gains especially significant is that the products were sold without the help of subsidies," says Tom Suber, USDEC executive director.  "Most of the categories showing increases were for higher value or food service products.  When supported over time by focused company and industry efforts, such value-added products can moderate adverse economic conditions."

Much of the increase in U.S. dairy exports last year resulted directly from concerted market-development programs sponsored by U.S. exports and USDEC, Suber adds.  Seminars, trade missions and shows, plus promotions held at the industrial, food service and retail levels helped drive sales increases for high value dairy ingredients.

Marc Beck, USDEC vice president of marketing, says many of the "best markets" for U.S. dairy exports underwent economic difficulties in 1998.  "But we've found that when companies target their efforts on products and regions where market development programs can make a difference, they've been successful."

U.S. cheese export volume declined 2% in 1998 from the previous year for a total of 35,848 metric tons.  But gains were realized in Japan (19% to 7,161 tons), Mexico (11% to 6,184 tons) and China (18% to 560 tons).

Whey protein sales increased in almost every major market, says USDEC, except in the economically troubled Southeast Asian markets.  Whey protein exports increased by 12% to Mexico (to 18,641 tons), 8% to China (to 17,956 tons), 8% to Japan (to 16,752 tons) and 18% to Korea (to 12,194 tons).  Demand for high-value whey-protein concentrates worldwide increased 62% compared to 1997 levels to 19,463 tons.

U.S. ice cream exports increased 4% to 38,204 tons with a 26% increase to Japan (to 12,243 tons) and 6% to Mexico (6,909 tons).