October 16, 2023

AHDB: EU dairy product availability lower in Q2 2023

EU dairy product availability remained lower in the second quarter of 2023 compared to the same period in 2022, according to Soumya Behera, senior analyst (dairy) of the United Kingdom's Agriculture and Horticulture Development Board (AHDB).

Despite marginal growth (0.6%) in milk deliveries in the European Union during the quarter, weakening consumer demand led to lower production of dairy products. Domestic demand continues to be challenged by reduced consumer purchasing.

However, easing prices made EU dairy products more competitive on the export market.

Available supplies of skimmed milk powder (SMP) saw strong year-on-year decline. This was driven by a large decline in production and good growth in export volumes as subdued EU pricing supported trade.

Higher milk deliveries added to whole milk powder (WMP) production volumes. Although this uplift was limited by increases in processing and storage costs, processors were reported to be producing in line with contractual agreements.

Imports remained on a par with the previous year while exports recorded volume growth, supported by newer markets. The absence of expected demand from China was compensated largely by exports to MENA, Brazil and Mexico. Overall, this drove available supplies downwards.

- AHDB