The soft U.S. economy could make dairy export demand even more crucial in the months ahead. Recent economic indicators suggest additional pressure may be building for American households.

According to the U.S. Dairy Export Council, April exports rose 15 percent and remain on track for another record year. Overall U.S. dairy export volumes were down two percent from a year earlier, but export value increased nine percent to $781m.

Cheese exports surged 30 percent in April, marking the third consecutive month of record‑high shipments. Butterfat exports climbed 74 percent, driven by strong demand for butter and anhydrous milk fat in the Middle East and North Africa. Exports of nonfat dry milk and SMP rose nine percent for the month, led by strong buying from the Philippines.

The Council reports that the closure of the Strait of Hormuz appears to have rerouted some exports through Saudi Arabia, contributing to a twentyfold increase in butter shipments year over year.