Q1 2025 dairy trade review: Exports grow for powders, whey and butter while cheese declines

Key trends

• Total UK dairy export volume for Q1 2025 declined by 5.1% year-on-year at 314,500 tonnes
• Growth in exports of powders, whey and butter were outweighed by a decline in exports of milk and cream, yoghurt and cheese
• Exports of whey are at the highest level seen in the last five years
• Total UK dairy import volumes for Q1 2025 increased by 5.8% year-on-year at 286,900 tonnes

Powders, whey and butter exports roll up while others scale down

Total export volumes of dairy products from the UK for Q1 2025 are down year-on-year. However, they are higher compared to the last two quarters. Exports of dairy products to the EU declined by 24,000 t whilst increasing by 7,200 t to non-EU nations.

This was largely driven by a decline in exports of milk and cream which fell by 24,300 t (10.9%). There was also a decline in exports of cheese and curd of 3,300 t (6.4%) and a marginal decline of yoghurt exports by 400 t (3.9%).

In comparison, powders, whey and whey products and butter exports continued to grow year-on-year. Exports of whey recorded a new five-year high. Powders saw the biggest year-on-year increase, up by 5,300 t: bound for non-EU nations such as Asian countries (Pakistan, Malaysia, Indonesia, Bangladesh), Algeria and the United Arab Emirates. This was followed by exports of whey and whey products, which increased by 3,600 t and butter by 2,200 t during the period. Exports of powder picked up year-on-year after declining in the second half of 2024.

Though overall exports to the EU declined, they constituted around 90% of total UK exports. Ireland, Netherlands, France, Belgium, Germany and Poland are the major recipients. In Q1 2025, exports to France increased by 30% to 10,000 t, Germany increased by 80% to 5,400 t and Poland increased by 16% to 3,900 t. Conversely, exports to Ireland declined by 11% to 221,000 t, Netherlands declined by 7% to 20,100 t and Belgium declined by 14% to 7,300 t. Exports to non-EU countries like Morocco, Saudi Arabia, and some Asian and African countries also declined during the period.

Imports edge up

Total import volumes increased by 15,800 t (5.8%) at 286,900 t in Q1 2025 compared to previous year. Most of the increase was reported from EU nations (9,000 t), who are our major suppliers. Major EU nations contributing to UK’s increase in imports are Ireland (+8,200 t), Greece (+4,200 t), Netherlands (+1,800 t) and Poland (+1,300 t). Increases were dragged down by decline in imports from Spain, Germany and Belgium. Imports from non-EU nations also increased during the period by 6,800 t, with New Zealand being the main supplier. Imports from New Zealand have seen a remarkable shift during the last one year, with New Zealand taking advantage of their preferential trade agreements. Cheese and curd imports increased by 4,500 t at 6,400 t in Q1 year-on-year, taking the major chunk of the import basket.

Imports of cheese and curd saw the biggest increase of 9,800 t (9.6%), followed by whey and whey products by 3,300 t (17.9%). Butter and powder imports edged up by 2,000 t (14.4%) and 1,600 t (8.5%) respectively. The latest dairy retail data reflects increasing consumer demand for yoghurt, cheese and cream in the domestic market. Yoghurt is an exception in the basket with imports declining by 1,700 t (2.2%) during the period compared to year ago levels.

Opportunities ahead

Exports of powders and whey have witnessed significant growth in this quarter. With consumers preference increasing towards protein rich diet, there lies ample opportunity for the exporters to leverage their presence in the global markets. In countries like China, one of the major importers of dairy products, a boom in demand is expected for protein rich products. Coupled with this the commandment of British speciality cheese is also another area to thrive on. The recent trade summit with EU, one of our major suppliers and importers of dairy products, presents ample opportunities to further increase exports.

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