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Dairy exports stalled in January
Wednesday, 17 March 2021
By Patty Clayton
This article has been updated with revised trade data from HMRC (09 June 2021)
UK dairy exports to the EU fell 23% in January from year earlier levels. But looking just at January figures is deceiving.
The uncertainties around the EU-UK trade deal meant most businesses took measures to avoid shipping in January. To compensate for this, shipments were elevated in the run up to our exit from the EU.
The drop off is much less dramatic when exports in the last quarter of 2020 are included in the total. Over the 4 months from October 2020 to January 2021, exports of all dairy products to the EU were 5% lower.
The largest drop in exports was seen in the buttermilk & yoghurt and whey products categories, which fell by 36% and 47% respectively. Milk powder exports in the 4-month period were also down significantly, falling by 18% (5,000 tonnes) year on year.
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This drop in trade will partly be the result of added difficulties and costs associated with trading with the EU However, lower demand due to the pandemic, combined with issues around availability of shipping containers, has been the main reason for lower shipments. This can be seen in the drop off in exports to non-EU markets, which were down 27% over the same 4-month period.
Here, milk powder and butter exports were most affected, with volumes down by 6,700 and 3,200 tonnes respectively.
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