Archive: EU exports grow despite Russian embargo

Published 24 February 15

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Despite losing one of its most important export markets, the EU has seen an overall increase in dairy exports. Higher milk deliveries in 2014 will have contributed to the increase in exports, although competitive product prices were likely the key factor helping to grow both existing and new export markets.

EU dairy product   exports

Product

2013

2014

% change

thousand tonnes

WMP

374.3

388.4

+4%

SMP

406.7

646.9

+59%

Condensed milk

250.5

299.3

+19%

Butter and butteroil

117.0

138.4

+18%

Cheese

786.7

721.1

-8%

Whey

516.2

503.7

-2%

Total

2,451.5

2,697.6

+10%

                                                              Source: Eurostat

Cheese, the EU’s most exported dairy product (in volume terms), saw a fall in export volumes during 2014. This was widely expected following the Russian embargo on food imports from the EU which began in August. With Russia historically accounting for a third of all cheese exports from the EU many analysts expected overall export volumes to fall by more than the 8% actually recorded.

In contrast, SMP exports grew in 2014 to 646,900 tonnes. This is an increase of over 240,000 tonnes (59%) compared to 2013. Existing key trading partners such as Algeria, China and Egypt have purchased more SMP from EU member states during 2014. In addition, countries such as Peru and Morocco who haven’t traditionally purchased large volumes of SMP from the EU have entered the market, perhaps encouraged by lower prices