After Brexit, the UK would be the EU’s largest customer for dairy products, if trade continued at recent levels.
According to AHDB Dairy, the UK imported around £2.5bn worth of dairy produce from the EU-27 (the 27 Member States of the EU, excluding the UK) during 2015.
This is equal to around 20% of EU-27’s total global exports.
Despite excellent milk producing credentials, the UK has the second largest net dairy deficit in the world, behind China.
This trade deficit is largely driven by cheese imports, which made up around half of the value of the UK’s total dairy imports in 2015.
It also imports significant quantities of infant formula, butter, yoghurts and buttermilk. As a result, the UK is one of the most valuable global markets for dairy and will be a key target for many dairy exporting nations.
AHDB Dairy has said it will now look at which EU Member States rely most heavily on the UK for their dairy exports.
Meanwhile, the Global Dairy Trade, an indicator of market sentiment, has increased by 1.3% in the latest fortnightly auction today (7 February).
