Mixed dairy export performance so far this year

UK dairy product exports have had a mixed performance so far this year (January-August). Exports of the key product categories range from a 22% decline on the year for yogurt and buttermilk, to a 22% increase for cheese. Other category declines included powders and concentrates (-14%) and butter (-2%), while other categories in growth were milk and cream[1] (+9%) and whey products (+10%).

At the start of 2021, the implementation of post-Brexit regulations disrupted exports; this meant most categories started 2022 with strong year-on-year growth. As we moved into the summer, monthly exports have been in decline compared to year-ago figures for all categories except cheese.

Although there has been some recovery in exports this year, they remain below 2020 levels for all categories except milk and cream.

Cheddar leads strong cheese exports

Cheese exports have somewhat bucked the trend this year, maintaining year-on-year growth each month while other categories slipped into decline as 2022 progressed. This has given the overall category the strongest year-to-date growth, up 22% (21.5k tonnes) for Jan-Aug.

The biggest contributor to this growth was Cheddar[2], where exports were up 25% (11k tonnes) year on year for the period. This was primarily driven by increased exports to the EU (+35%, +10.5k tonnes), particularly France, Germany and Spain. There was also a small increase in exports to non-EU countries (+4%, +580 tonnes). However, it should be noted that this growth was against a low comparable in 2021, when exports were hindered by both new regulations and reduced demand from importers due to Covid restrictions. Total Cheddar exports for Jan-Aug 2022 are above 2021 and 2020 exports for the same period but remain below 2019 exports.

[1] Includes milk crossing the Irish border for processing

[2] Excluding grated, powdered and processed

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