EU dairy exports grow, led by demand from China but African imports fall

File photo
File photo
Margaret Donnelly

Margaret Donnelly

The volumes of dairy exports out of the EU have increased, new figures from Fonterra show, as demand from China continues to grow.

New Zealand milk production in July was 23.5 million kgMS, up 4.8pc compared to the same period last year, new figures from Fonterra show. 

However, June and July account for only a small proportion of total milk production for the full season. The increase over last season partly represents good conditions at the start of the season and supply is also supported by winter milk.

New Zealand milk production for the 12 months to July was 2.2pc higher than last year.

EU milk production decreased 0.3pc in June compared to the same period last year. A slowdown in production due to the recent heatwave, impacted Germany (2.3pc), The Netherlands (2.7pc), Spain (2.1pc) and Finland (5pc).

Production in Ireland continues to grow, up 7.5pc in June versus the same period last year.

EU milk production for the 12 months to June was up 0.1pc compared to the same period last year.

Exports

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Total New Zealand dairy exports decreased by 0.2pc, or 410 MT, in June compared to the same period last year. This was primarily driven by butter and AMF, down 9,700 MT but mostly offset by a WMP increase of 7,326 MT.

Exports for the 12 months to June were up 8.4pc. This was primarily driven by a significant increase in WMP and fluid milk products, up a combined 250,000 MT.

EU dairy exports increased by 5.9pc, or 28,049 MT, in May compared to the same period last year. This was primarily driven by SMP, fluid milk products and butter, up a combined 32,477 MT. This was partially offset by WMP, down 5,993 MT.

Exports for the 12 months to May were up 3.7pc, or 199,704 MT, on the previous comparable period. SMP, lactose and fluid milk products were up a combined 255,738 MT. This was offset by a 75,231 MT decrease in WMP.

US dairy exports decreased 12pc, or 24,978 MT, in June compared to the same period last year. Whey exports to China continue to decline (7,778 MT) as a result of the African Swine Fever.

Declines were also reported in SMP and cheese, down a combined 18,669 MT. Exports for the 12 months to June 2019 were down 6.3pc, or 151,577 MT on the previous comparable period. The decrease was largely driven by whey powder,

WPC, lactose and SMP, down a combined 177,916 MT.

Asia (excluding China) dairy import volumes  increased 0.2pc or 742 MT, in May compared to the same period last year.  Imports for the 12 months to May were up 6.1pc, or 283,317 MT, compared to the same period the previous year.

China dairy import volumes increased 2.8pc, or 6,163 MT, in June compared to the same period last year. This was driven by increases in fluid, WMP, SMP and cheese, up a combined 33,283 MT but largely offset by whey, which was down 21,900 MT. African swine fever continues to have a significant impact on whey imports as hog numbers decline along with demand for feed.

Imports for the 12 months to June were up 8.4pc, or 232,321 MT, compared to the same period last year.

Strong demand out of China continued with imports across all key categories; WMP, fluid products and SMP were up a combined 279,352 MT.

Imports into Africa decreased 24.5pc or 94,891 MT in May 2019 compared to May last year. Decreases were recorded in fluid milk products, cheese, WMP, cultured products and SMP, down a combined 82,431 MT.

The main driver is lower imports by Algeria as political instability creates economic uncertainty and drives weaker demand in powders.

Online Editors


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