A weak dollar and growing demand for dairy products has increased Wisconsin agricultural exports 13 percent during the first six months of 2008, reaching a record high of $975 million.

In comparison with the first six months of 2007, dairy exports have grown 59 percent over the past six months, with cheese exports alone rising 48 percent.

“Agriculture is one of the cornerstones of our economy, and today consumers around the world view Wisconsin as a source for food and livestock,” Gov. Jim Doyle said in a statement Monday. “In Wisconsin, we are aggressively positioning ourselves to take advantage of this growing demand through technological upgrades and new products.”

The large growth in exports can be attributed to increased growth in the middle class around the world, the decreasing strength of the dollar and an increased growth in demand for cheese, whey and butter, according to Jen Pino-Gallagher, economic development consultant for the Wisconsin Department of Agriculture.

“There is a growing middle class around the world that are looking for higher-end food products,” Pino-Gallagher said. “Wisconsin companies are also developing a greater understanding of exporting, meaning that they’re getting better at it.”

According to Pino-Gallagher, Canada is Wisconsin’s biggest export market and this has only increased since the U.S. dollar is currently weaker than the Canadian dollar. 

Mexico is the No. 2 export market, which is helped with the reopening of borders for sale of dairy cattle in March of 2008.

“We have seen a huge export of dairy cattle,” Pino-Gallagher said. “Mexico closed the borders in 2003 due to the mad cow disease found in Washington State. With the reopening in March 2008, exports of dairy cattle dramatically increased.”

Other countries that have boosted Wisconsin’s export economy are Japan, China, and Korea.

“Japan has increased everything from specialty cheese products to butter,” Pino-Gallagher said. “In China, the growing middle class is what’s pushing the importance of process food products and ingredients. Same with Korea: They are looking for more convenient food at a greater variety.”

Even with Wisconsin’s increase in dairy exports, the state is still second to California, which had a larger increase in dairy product exports overall.

However, according to Pino-Gallagher, one must remember that exports in general are credited to the final port where they leave. Distributors may have purchased the products from Wisconsin, but because they are shipped out of California, then that state gets the credit.

“Overall, Wisconsin is holding its own in export growth and export increase,” Pino-Gallagher added.

Wisconsin is the No. 2 state in dairy exports, in front of New York and Idaho.