EU export slowing down in the first quarter 2018

EU-28 exports slow down in March 2018, although the balance for the first quarter of 2018 is positive compared to the same period of the previous year. The growth of EU dairy exports in Milk Equivalent (ME) is +1.5%, the least exciting performance since 2015, comparing the same period year-over-year.

The volumes of dairy products exported from January to March 2018 increased by 2.5%, with good results for infant milk formula (+21.9%), cheese (+1.3%), SMP (+8.1%), butter (+13%) and whey powder (+9.3%).

Lower EU export prices

Exports in value were negative: -0.9% over the first quarter of 2017, reflecting a decrease in sales prices, probably due to an oversupply of milk in the EU-28, but also a lively demand only from some regions of the planet and global competitiveness.

The decrease in the export values, however, leaves room for positive changes for infant milk formula (+14.2%), butter (+ 24.2%), cream (+13.1%) and bulk and packaged milk (+3.7%).

56% of infant milk formula exported from the EU goes to China and Hong Kong

China and Hong Kong are the first two destination markets for infant milk formula made in EU. In the first quarter they absorbed the 56% of the market share, with an increase by 43% in exports from the EU to China and by 136% to Hong Kong.

On the other side, EU exports to China decreased for WMP (-44%), SMP (-19%) and Butter (-13%), which evidently chose at this stage the New Zealand channel, more competitive in terms of price, at least for butter and WMP.

The increase in the price of crude oil could trigger more buoyant trade relations between Europe and all those countries that base their economy on oil.

EU-28: dairy products Export year-to-date (March)
QUANTITY (Tons) VALUE (’000 EUR)
2017 2018 ± on 2017 2017 2018 ± on 2017
Infant milk formula 122.344 149.179 +21,9% 1.008.449 1.151.396 +14,2%
Cheese 201.523 204.230 +1,3% 962.216 954.829 -0,8%
SMP 191.555 207.067 +8,1% 422.456 346.679 -17,9%
WMP 107.383 94.318 -12,2% 380.696 307.616 -19,2%
Butter 44.403 50.183 +13,0% 222.699 276.583 +24,2%
Milk and cream 219.990 226.836 +3,1% 207.279 224.385 +8,3%
of which:
- Cream 44.543 44.708 +0,4% 100.478 113.678 +13,1%
- Bulk and pack. milk 175.447 182.129 +3,8% 106.801 110.707 +3,7%
Whey Powder 158.603 173.352 +9,3% 229.818 222.594 -3,1%
Condensed Milk 79.002 69.214 -12,4% 142.260 110.580 -22,3%
Yogurt and buttermilk 45.147 46.035 +2,0% 87.623 79.841 -8,9%
Casein 8.043 11.597 +44,2% 48.871 56.092 +14,8%
Lactose Pharmaceutical 54.275 46.856 -13,7% 65.659 54.509 -17,0%
Caseinates 21.962 5.767 -73,7% 74.635 31.307 -58,1%
Lactose edible 2.631 3.085 +17,3% 2.122 1.832 -13,7%
TOTAL EXPORT 1.256.862 1.287.720 +2,5% 3.854.782 3.818.243 -0,9%
Data processed by Clal based on IHS source.

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 CLAL.it – EU-28: monthly price of products exported in Milk Equivalent (ME)

CLAL.it – EU-28: monthly price of products exported in Milk Equivalent (ME)

 CLAL.it – EU-28: Total Export in Milk Equivalent (ME) by region of destination (year-to-date)

CLAL.it – EU-28: Total Export in Milk Equivalent (ME) by region of destination (year-to-date)

 

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CLAL Team
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The CLAL.it team is composed of young people who with the help of Computer Science study the dairy market and develop tools to provide the Operators of the dairy sector with a comprehensive real-time view of the national and international market trends.

Posted in Dairy export, EU