Inside: Dairy Market
China and Russia drive up butter prices
The butter price in the Netherlands, at €6.950 per ton, is unprecedentedly high. Records have also been smashed in other European countries. On the world market, it is China and Russia that are pushing up the price of butter.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
China and Russia are by far the largest importers of butter. Between January and July 2017, China imported 55.780 tons, an increase of 7% compared to last year. Russia even imported 23% more butter, reaching 57.287 tons. Russia has thus surpassed China.
In China, Europe has a market share of 12%, compared to 10% last year. However, Europe has no market share in Russia. Since 2014, the Kremlin has banned European dairy products.
No US price record
Europe does indirectly benefit from the Russian purchasing spirit, as world market prices for butter are rising across the board. This is due to limited stocks. The third largest importer of butter is the United States. There, imports fell by 16% to 24.507 tons.
Europe is the country's largest supplier, with a 58% market share. Last year that was still 36% last year. The price of butter in the US is also rising sharply, to $5.843,75 per tonne. However, records have not yet been broken. In 2014, the price of butter briefly exceeded $6.500 per tonne.
Text continues below the chart.
The price of butter in the US is picking up, but is still below the record from 2014.
On balance, European butter exports shrank by 2017% in 18, reaching 117.209 tonnes. This was mainly due to a lack of available supplies. New Zealand is the largest butter exporter with 268.030 tons, but the kiwis also have to give up 8% of their export volume.
Asia supports cheese price
Japan is by far the largest importer of cheese. Compared to 2016, imports increased by 3% to 156.734 tons. Europe has a market share of 31% in Japan, compared to 27% in 2016. Despite the fact that the United States imports less cheese, the European market share there is increasing. US imports fell by 11% to 101.649 tonnes. The European market share increased by 2% to 72%.
Another important cheese importer is South Korea. Imports there increased by 21% to 77.047 tons, of which 35% comes from Europe. On balance, Europe exported 7% more cheese, resulting in a total of 488.390 tons. This makes Europe the largest exporter par excellence.
Milk powders
Europe is also the world market leader in skimmed milk powder. In 2017, volume growth was no less than 39%, resulting in a total of 493.093 tons. However, the price of skimmed milk powder in Europe has been weak all year. At the beginning of September, skimmed milk powder was trading at €1.711 per tonne in Europe. The lowest level in 2017 and just €450 per tonne below the 5-year average.
Mexico is the largest importer of skimmed milk powder, with a volume growth of 26%. This brings the country to a total of 163.747 tons. Europe supplies 10% of this, compared to 3% last year.
Text continues below the chart.
The price development in 2017 of skimmed milk powder in Europe.
China is the largest importer of whole milk powder with 337.395 tonnes, of which Europe has a 3% market share. After New Zealand, Europe is the largest exporter of whole milk powder, with sales of 244.234 tons.
New Zealand stands head and shoulders above other exporters with an export volume of 790.268 tonnes. In 2017, volume growth there was 3%.