Market Intel Team|21 March 2023
- Early January figures are pointing to another month of 0.8% to 1.0% YoY growth for EU-27+UK milk production. The gains will have been driven by strong figures from Germany (+93,697 metric tons YoY), the Netherlands (+52,258MT) and to a lesser extent, Belgium (+17,100MT) & Poland (+16,994MT). Italian milk production posted a fourth consecutive year-on-year decline in January, easing 3.7% while France posted a 1.4% decline.
- Skim milk powder (SMP) exports increased nearly 18% (+9,174 metric tons) year on year in January, the largest volume of January SMP shipments since 2019. China remains the key SMP destination, with 15% market share (9,518MT), which is 68% more than last January. EU SMP shipped to Morocco and the United Arab Emirates both significantly improved, up 186% and 173%, respectively from Jan ’22.
- Cheese exports declined 10% year on year (-6,948MT), the fifth consecutive decline for the world’s largest cheese exporting region, marking the lowest volume of cheese exports in January since 2019, and the lowest monthly cheese export since December 2018. The United States became the largest destination of EU cheese, although exports fell 2% YoY (-159MT). Meanwhile, cheese destined for Japan fell 36% (-3,413MT) from Jan ’22, which was previously Europe’s largest destination. Export volumes to Ukraine slumped 53% YoY (-2,355MT).
- Infant formula exports to all destinations leapt in January, +25% YoY (+9,106MT), with volume to China UP 43% (+7,190MT), making up the bulk of the increase. Exports to Alegria gained 71% (+752MT) as did volumes to United Arab Emirates, +296% (+887MT). Infant formula exports from EU have been steady around the 44,000MT mark for three months now.
- Fluid milk and cream exports shrunk 21% in January versus prior year, with only 73,920MT (-19,841MT) shipped, the smallest monthly volume since March 2017. Exports to China were the key driver of this decline, DOWN 50% YoY (-23,317MT).
Back
