Exports of British Dairy products are worth over £1.6 billion. Exports are an important part of the UK dairy market, with many businesses operating detailed long-term export strategies to increase their share of trade outside the UK market.
UK dairy processors export to over 135 countries worldwide, and in the last year, dairy exports were up 9%, outperforming all other areas of food and drink. Dairy products make up 15% of all food exports, with cheese being the third best food category.
Our key export markets are Europe and North America, with Asia and the Middle East showing rapid growth. We participate in many shows around the world and organise inward and outward missions to promote British dairy products. The focus is on added-value products, like cheese, cream, butter, skimmed milk powder (SMP) and whole milk powder (WMP), from the commodity products right up to the premium, artisan products.
The UK has a wealth of resources available to develop exports of dairy products, including a large and varied processing sector, strong traditions and a wide range of products, some of them highly innovative.
Total UK cheese exports were 190Mt in 2018, up 11% on 2017. In value terms, these were worth £670m, up 10% on 2018, with the majority heading to the EU with 76% of the market. Cheese shipments to non-EU markets have grown by 7%, due to increased demand in Asia and steady demand in North America.
So far this year, mozzarella has seen the largest growth in year-to-date export volumes, shipping 62% more between January and September than last year. Cheddar has also seen growth over this period, exporting 7% more volume (4,690 tonnes).
WMP & SMP exports to EU markets total 40Mt. Much higher prices are commanded in Asia, where we export 11Mt, with a £44m value, compared with the EU value of £52m.
Historically, SMP has been the go-to product for dealing with excess milk production, over and above domestic requirements. As such, SMP exports have been linked to the need to balance stocks in the UK rather than being a specific export-focused approach.
Butter and cream
UK butter exports are often driven by overall milk production levels and the need to balance fat stocks within the UK. Total butter exports are up by 14% on volume and 42% on value (due to increased prices) on 2017, with a total export value of over £270m and volume of 62Mt.
Over 95% of total cream exports, worth £71m value, go to the EU, with a very small amount heading further afield.
Guidance on exporting
To find out more about becoming an exporter, here are some links which provide detailed information on health certification and country guidance notes: