Friday, July 8, 2022

Europe exports less dairy products

Exports of dairy commodities from the European Union (EU) are down this year.  

Trade statistics show that export volumes from EU member countries were down 8.5% this year. During the first four months of the year export volumes fell sharply for milk powders and casein but more fat based dairy produce was pushed into export markets. Exports of cheese 11% which is significant given this is the main dairy product exported from the EU. Butter and anhydrous milkfat exports were also each up by 13%.  

Exports of skim milk powder (SMP) and casein fell the most with export volumes falling by 35% and 39% respectively. Exports of SMP to Algeria in the early part of 2013 totalled less than half of the volume that was exported during the corresponding time in 2011. EU member countries also collectively exported less SMP into Egypt, Nigeria and China this year. Indonesia was the of the few markets to secure more European SMP this year, making it the second largest market for European SMP behind Algeria.  

The reduction in SMP coming out of Europe has provided opportunities for other exporters, particularly New Zealand (NZ) and the United States (US). NZ made the most of these opportunities in the early part of 2013 before drought restricted production volumes during Q2 2013. The US has more recently been given plenty of opportunites to enter new markets and increase their market share in existing markets.  Trade statistics indicate the US has increased the volume of SMP it has shipped into south east Asia particularly Indonesia, Vietnam, and Malaysia.  

European exports of whole milk powder (WMP) continue to trend down in volume terms. This trend has been present for a number of years now as European manufacturers concentrate producing goods such as liquid milk and cheese to their domestic market. During the first four months of 2013 WMP export volumes have fallen by 15% year-on-year. Algeria in particular has sourced a lot less WMP from Europe than they have previously done. The majority of the WMP exported from the EU heads into the North Africa/Middle East region. Although Cuba and the Dominican Republic also make it onto the list of Top 10 export destinations for European WMP.

 

 

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