Global dairy exports are showing an upward trend, according to figures from Fonterra on October and November. Exports from the United States remain strong, in Europe and New Zealand growth appears to be slowing down somewhat.
European Union exports of dairy products rose by three percent in October compared to October 2015. Although exports are still in the green numbers, it is the third month in a row that export growth in Europe has slowed.
It is mainly the smaller products such as protein and lactose that show higher export figures in October. Products such as whole milk powder, cheese and fresh milk are virtually stable. Despite the growth that seems to have faded somewhat, total European exports from October 2015 to October 2016 are still nine percent higher compared to the same period a year earlier. Fresh milk (+17%), cheese (+14%) and milk powder for infants (+11%) in particular made this plus possible.
Export growth is also slowing in New Zealand. In November, the country exported five percent less dairy products compared to the previous year. In particular, the whole and skimmed milk powders, with a share of 60 percent of monthly exports, jointly showed a seven percent drop in exports. Australia, on the other hand, showed a 10 percent increase in November, mainly due to an 11 percent increase in cheese and 51 percent higher exports of whole milk powder.
The largest increase in exports can be seen in the United States. In November, the country recorded an export plus of 27 percent. Especially whey powder (+45%), fresh milk (+67%) and skimmed milk powder (+28%) contributed to this. Dairy exports in the US showed growth throughout the last quarter of 2016, with an average increase of two percent from November '15 to November '16.
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