UK dairy exports declined as cheese and powder volumes rose
The second quarter of 2026 marked the first annual fall in total UK dairy export volumes since the decline recorded in the first quarter of 2025, AHDB reported. Shipments to European Union markets dropped by 94,400 tonnes, while exports to non-EU destinations increased by 1,400 tonnes. The main reductions concerned milk and cream, yogurt, whey and butter. Export value also decreased for milk and cream, whey, butter and cheese.
Cheese exports continued their upward trend from the second quarter of 2025 and reached a quarterly record. Volume rose by 15.3%, or 8,000 tonnes, from a year earlier. The value of those exports nevertheless fell by 4%, which AHDB attributed to lower commodity prices in global markets.
The largest increases in cheese shipments were recorded in the EU, including the Netherlands, up 1,800 tonnes; France, up 1,600 tonnes; Belgium, up 1,000 tonnes; and Germany, up 600 tonnes. Smaller increases were reported for Austria and Spain, both up 300 tonnes, and Ireland and Turkey, both up 200 tonnes. Outside the EU, China received an additional 1,000 tonnes and Singapore 400 tonnes, while Canada received 100 tonnes more.
Cheese exports also increased to several markets in the Middle East and North Africa: Libya by 1,900 tonnes, Bahrain by 1,400 tonnes, Saudi Arabia by 800 tonnes and Egypt by 200 tonnes. South Africa recorded an increase of 400 tonnes. AHDB said logistical difficulties connected with the continuing conflict in the Middle East limited the region’s overall increase. It also noted that expanded US production capacity has enabled American cheese to be sold at highly competitive prices, presenting a challenge for UK exporters, especially in the industrial market.
Milk powders recorded the largest annual volume increase, rising by 9,400 tonnes, or 22.2%. The additional shipments went to EU markets including Denmark, France, Germany, Italy, the Netherlands, Poland and Spain, as well as non-EU destinations such as Bangladesh, Egypt, Lebanon, Libya, Malaysia, Mexico, Oman, Qatar, Thailand, Vietnam and Yemen. AHDB linked plentiful supplies and competitive pricing to record milk deliveries during the 2025/26 milk year. Exports to China remained below earlier levels amid weaker consumer demand and a declining and ageing population, according to the board.
Other categories outweighed the gains from cheese and powders. Butter exports fell by 600 tonnes, or 4.3%, year on year, while their value dropped by 37% as the average price remained weak. The steepest falls came from Belgium, down 1,800 tonnes; Italy, down 1,000 tonnes; France, down 400 tonnes; and Ireland, down 300 tonnes. Increases to the Netherlands, Germany, Denmark, Australia and several markets in the Middle East, Africa and the Gulf states reduced the net decline.
Yogurt exports decreased by 5,300 tonnes, or 49.7%, following a short-lived rise in the previous quarter. The reductions included 4,900 tonnes to Ireland, 700 tonnes to Malaysia and 100 tonnes to Egypt. Milk and cream shipments recorded the largest absolute fall, down 102,000 tonnes, or 43.5%, while whey declined by 2,500 tonnes, or 14%. The value of both categories also decreased, AHDB said.
