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
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
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%|
|Milk and cream||219.990||226.836||+3,1%||207.279||224.385||+8,3%|
|- Bulk and pack. milk||175.447||182.129||+3,8%||106.801||110.707||+3,7%|
|Yogurt and buttermilk||45.147||46.035||+2,0%||87.623||79.841||-8,9%|
|Data processed by Clal based on IHS source.|
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