Abstract
This Discussion Paper provides a comprehensive description of longer-term trends for exports and world prices of dry milk products. The importance of U.S. exports of dry milk products is suggested by figures in the paper showing that in 2000, 17% of U.S. nonfat dry milk, 35% of dry whey, 47% of lactose, and 11% of whey protein concentrates were exported. The Gould-Villarreal study documents the decline in world trade in nonfat dry milk and expansion of world trade in whole milk powder. The paper suggests that collective product mix decisions of the U.S. dairy industry are partially out-of-sync with world demand. Other implications for U.S. dairy exporters of changes in world demand for dry milk products are discussed.
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