UK dairy exports continue to fall amid new lockdowns

All major UK dairy product categories were down on the year in Q3, AHDB says
All major UK dairy product categories were down on the year in Q3, AHDB says

UK dairy exports continue to fall as many countries around the world struggle with the coronavirus pandemic, new figures by AHDB show.

The UK’s total dairy exports for July to September (Q3) totalled 295k tonnes, down 54k tonnes - 15 percent - on Q3 2019.

This brings year to date trade to just over one million tonnes, down 12 percent on the same period a year previous.

According to Katherine Jack, AHDB Dairy analyst, a large share of the Q3 decline came from lower powders and concentrates exports compared to Q3 2019, down 21k tonnes overall.

Skim milk powder (SMP) exports to the Middle East and North Africa during the quarter were down by nearly 6k tonnes on the year, with 3.6k tonnes less going to Algeria, she said.

"However it should be noted that large fluctuations are fairly usual due to the Algeria’s tendering and buying practices for SMP," Ms Jack added.

"On the WMP (whole milk powder) side, volumes shipped to the EU fell by 6.5k tonnes year on year."

The decline in cheese exports in Q3 was mainly driven by lower exports to the European Union, down 5.3k tonnes - 12 percent.

There was growth in exports to some other regions, although these are much smaller export markets than the EU, AHDB figures show.

Exports to Asia and Oceania were up 5% (138 tonnes), with higher exports to Hong Kong helping offset a drop in exports to China.

In North America, exports grew 2% (54 tonnes), driven by an 8% increase in exports to the United States.

Ms Jack said: "Although we are now halfway through Q4 2020, trade data for the full quarter won’t be available until February.

"Given the continuing pandemic, it is likely that trade has continued to be disrupted. Lockdowns imposed in several countries across Europe will have dampened already subdued foodservice demand for dairy products."