UK dairy trade deficit reduces

Published 30 March 16

The UK reduced its dairy trade deficit by 29k tonnes in 2015, although it is still a net importer of dairy products. This was due to both a 19k tonne increase in exports, and a 10k tonne drop in import volumes.

In value terms, the deficit reduced by £124m in 2015. This was mainly due to a £346m fall in the amount spent on imports, due to lower global dairy prices. The revenue generated from exports also fell, but by a smaller £222m.

While a reduced trade deficit is positive news, it should perhaps be taken with a pinch of salt as this often occurs when milk production rises. The increase in available supplies will have allowed domestic manufacturers to supply the market at the expense of imports, although at lower prices. 

UK trade 30Mar16