Global dairy exports battle headwinds

Published 14 October 15

Global exports of dairy products experienced challenging conditions in the first half of 2015, according to a report by Eucolait. Lacklustre demand from importing countries such as China and Algeria had an impact on exports of WMP, which were down 9% compared to the first half in 2014. In addition, the Russian ban resulted in cheese exports from Europe down 100k tonnes (13%) for the year ending June 2015, compared to the same period last year. Despite this, Europe remains the strongest player in the global cheese market and is growing exports to markets such as the US and Japan.

During the period, the EU did record growth in exports for other dairy products, largely due to reductions in EU wholesale prices. Increases were seen in exports of whey, infant formula, whey protein concentrates and, in particular, SMP, which was up 75% compared to the first half of 2013. Butter and butteroil exports from the EU have reached unprecedented levels, however, New Zealand continues to dominate the global market for these products. This contrasts with European exporters consolidating their dominant position in global exports of fresh milk products (milk and cream).