Analysis Dairy export figures
The Netherlands sees dairy exports dwindling, but revenues are rising
In the first half of this year, European countries saw dairy export figures shrink. The Netherlands does not escape this either. The milk powder export figures in particular are under pressure. It is also striking that China imports much less product from Europe.
Read this article?
Become a subscriber and get instant access
Choose the subscription that suits you
European dairy exports are under pressure across the board, according to figures from Eurostat. Skimmed milk powder is leading the decline, with a drop of 19% to 334.905 tons. Sales to China fell by no less than 40% to 42.000 tons, but countries in the Middle East also imported lower volumes. The sales of whole milk powder also dropped considerably with a decrease of 17% to 120.000 tons. Butter and cheese sales both lost 4% to 88.000 and 462.000 tons respectively. On balance, European dairy exports fell by 15% to 2,7 million tons.
When we zoom in on the Netherlands, we see a similar picture. With the exception of March, lower export volumes were recorded in all months. On balance, the Netherlands exported just under 400.000 tons to third countries in the first half of 2022, of which nearly 100.000 were cheese. This is 10% less than the same period last year. The underlying export value rose by 13% to €1,35 billion. The higher export value is a logical consequence of the sharp rise in dairy prices in recent months.
Multiple causes
The declining export figures are related to a number of aspects. For example, European countries produce less milk, which is also a driver of good sentiment in the dairy market. The high prices may deter importers. In addition, China has significantly increased milk production, reducing import dependency. What also plays a role in the background is that in recent months, China has still applied strict lockdowns in, among others, the metropolis of Shanghai. This may have inhibited demand.