• Following a solid start into 2024, global trade fell in the second quarter, primarily driven by weaker demand from China and Algeria. This contraction was however partially compensated by recovering trading activities in SE Asia, bringing the first semester up by 1% in milk equivalent.
• Exports of cheese boomed in the first semester and together with the solid recovery of whey and still positive WMP trade offset the losses in the other product categories.
• New Zealand mainly accounts for the reduction in the second quarter, with exports pulling back into negative territory after staging a remarkable performance in Q1. While EU and US exports remained rather subdued throughout the second quarter, Australia and the other second-tier suppliers continued to move up.
• EU exports of all the main products except whey powder and cheese continued to drift lower throughout the second quarter, with SE Asia and US the only destinations displaying growth.
• Persistent growing production despite catastrophic margins and weak domestic consumption continued to weigh down on Chinese demand, however signs of improvement were visible in the second quarter. Shipments to MENA keep expanding, albeit at a slower pace than before, whereas SE Asia was the most dynamic region in Q2, boosted by the recovery in Philippines and Indonesia.