The US is looking to expand its dairy exports to combat a predicted decline in demand for local domestic dairy products and to capitalise on higher international prices according to Rabobank industry analyst, Tim Hunt.
US dairy consumption has remained steady at 2.5-3.5 percent per annum in recent years however, future predictions see market growth slowing to 1.5-2 percent, the Weekly Times Now reports.
Hunt says that as the world's third largest milk producer, the US has risen its exports from three percent to 10 percent of production in recent years – a growth rate which could potentially impact on Australian exports.
"Maintaining Australia's edge in post farmgate processing and marketing will be crucial to sustain returns on farm," said Hunt.
Although the US has the production capabilities to keep up with rising global demand for dairy products, Hunt says that the move to higher exports will not be an easy ride.
Hunt says that the US currently has limited access to several important markets and many US products are not desired by the global market – for example, orange cheddar which produces red whey.
While in contrast, Australian dairy exporters have access to a number of key markets and a solid reputation throughout Asia.