export,
cheese,
whey powder,
milk
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%).
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%).
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.