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March dairy exports improve but still lag 2020
Wednesday, 19 May 2021
By Kat Jack
This article has been updated with revised trade data from HMRC (08 June 2021)
Exports of UK dairy products to the EU had another month-on-month rise in March 2021, but for the majority of categories, are still considerably down on year-ago figures. This reduction in exports is mainly attributed to increased trade friction following the end of the EU exit transition period. The increasing levels of exports as 2021 progresses suggests that some of the teething problems are being worked through as people get used to the new systems, but they remain an issue.
As of March 2021, exports of powdered and condensed milk, whey products, and butter were all down on March 2020 (45%, 52% and 19% respectively). Yogurt was down 23%, whereas cheese exports fared a little better, down 12% on the year. Revised figures from HMRC data, show the milk and cream category performed best, with a 5% increase on the year. The majority of milk exports are across the Irish border, which have not had the same checks as exports into mainland Europe.
On the import side, the picture is more mixed. March imports of powdered and condensed milk, whey products, and butter from the EU are still notably down on last year (32%, 60% and 60% respectively). Cheese and curd imports have risen since January and February, so that March was only down 12% on March 2020. Yogurt imports bucked the trend and were up 1% on the year in March, as were milk and cream imports (16%).
Since the transition period ended, UK exports of products of animal origin (POAO) to the EU are subject to increased customs requirements and procedures. These are not yet required for POAO coming into the UK from the EU. The ‘grace period’ for paperwork has been extended until 1 October, and to 1 January 2022 for physical checks.
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