UK cheese and milk powder exports hit all-time highs

UK cheese and milk powder exports hit record highs in the first half of 2026, despite an 11% fall in total dairy export volumes.

AHDB figures show overall dairy exports dropped to 613,500 tonnes between January and June, while their value fell 12% year-on-year to £973 million.

Cheese was one of the strongest-performing categories, with exports reaching 116,300 tonnes — the highest level on record. Milk powder exports also climbed sharply, rising by 23,000 tonnes, or 33.1%, to a record 92,500 tonnes.

The levy organisation said much of the growth in milk powder exports was driven by demand from EU markets including Germany, Italy and the Netherlands, while shipments also increased to Libya, Bangladesh and Egypt.

The milk powder category used in the figures also includes condensed and evaporated milk, although AHDB said it is dominated by milk powders.

Cheese and curd exports increased to a range of EU and non-EU destinations, including Belgium, France, the Netherlands, Libya, Bahrain, China and Saudi Arabia.

Butter exports rose by 2,700 tonnes, or 11%, while yoghurt shipments were up by 2,600 tonnes, or 12.4%. However, those gains were outweighed by a sharp fall in milk and cream exports.

Milk and cream shipments dropped by 114,000 tonnes during the six-month period, while whey exports fell by around 5,000 tonnes.

For dairy farmers, the strength of higher-value export markets remains important, with overseas demand influencing processor demand and wider market returns.

The EU remains the dominant destination for UK dairy exports, accounting for 86% of total volumes. Exports to the bloc fell by 86,000 tonnes, or 14%, with Ireland recording the largest decrease.

Shipments to Ireland were down by 119,000 tonnes, although AHDB noted that the figures include milk crossing the Northern Ireland border for processing in the Republic of Ireland.

That decline masked growth in several other European markets, including the Netherlands, Germany, Denmark, Belgium, Spain and France. Export volumes also fell to a number of non-EU destinations, including Morocco, New Zealand, Pakistan, Algeria and the United States.

The value of dairy exports declined after two years of growth, partly reflecting weaker commodity prices.

Export values fell across all major dairy categories apart from powders and yoghurt. Milk and cream recorded the steepest decline in value at 38.6%, followed by butter at 27.3%, whey at 8.5% and cheese and curd at 4.6%.

Despite that fall, cheese and curd remained the UK’s most valuable dairy export category at £461m. Milk and cream exports were worth £157m, while milk powders generated £147m.

Imports were broadly stable in the first half of 2026, slipping by less than 1,000 tonnes, or 0.15%, to 636,000 tonnes.

Milk and cream imports fell by 17,300 tonnes, while whey and butter also recorded declines. Those reductions were largely offset by increased imports of yoghurt, cheese and powders.

Overall dairy import value stood at £1.8bn, down 0.9% compared with the same period in 2025.

Imports from New Zealand also fell after strong growth over the previous two years, with volumes down by 1,100 tonnes, or 8.5%, as its products became less competitive.

AHDB said the record level of cheese exports highlighted “the continued strength of this category in global markets.”

Its exports team has continued promoting British dairy at trade shows and events during 2026, with Asia and the Middle East remaining key areas of focus.

Exports to the Middle East increased despite conflict in the region, but AHDB said future trade performance would continue to be shaped by geopolitical developments and changing international market conditions.