Our latest global dairy trade flows report covering the first quarter of 2023 is now available and you will find below the main takeaways:
•Following a decline of 3% in 2022, global dairy trade was up by 0,1% in the first quarter of 2023 (compared to a weak base in Q1 2022).
•In terms of products, SMP and lactose trade increased considerably, while cheese exports remained stable. WMP, butterfat, casein(ates) & whey volumes all fell.
•Dairy demand in some key markets has been challenging, the main cause being high food inflation. Import demand has nevertheless been stronger than anticipated, with MENA, Mexico and Brazil compensating the decline in China and South-East Asia.
•Despite the drastic drop in Chinese imports of WMP, there are some signs of improvement in other product categories such as whey powder, SMP and cheese.
•On the supply side, US continue to expand but the rate of growth has slowed down. In Oceania, the switch of production towards butter/SMP supported NZ shipments, while Australian exports keep shrinking.
•With more milk available for processing and better price competitiveness on the global market, EU exports performed rather well in Q1 2023, at least in comparison to last year. SMP and butter have been driving export growth, while cheese and whey are roughly on par with 2022.