Global Markets

Major markets for dairy products worldwide are the Middle East, Central and South America, North Africa and South East Asia. However, there are considerable variations in the trade flows observed for individual products.

While the United States of America (USA) and the European Union (EU) are major consumers of dairy products, only a small share of local demand is met through international trade.

Butter

The major exporters of butter are New Zealand, the EU, and to a lesser extent, Australia.

The EU is a major destination for New Zealand exports under preferential trade access arrangements between the two countries.

In 2009 world trade in butter (and butteroil) was just less than 700,000 tonnes. The single biggest butter import was Russia, accounting for about 10 per cent of all trade.

Outside the Russia, other important users of butter/butteroil include North Africa, South East Asia and the Middle East Gulf States including Saudi Arabia.

Cheese

The EU, New Zealand and Australia are major exporters of cheese.

In 2009 world trade in cheese surpassed 1.5 million tonnes.

The USA is a major market, importing around 190,000 tonnes in 2009. Much of this trade occurs under preferential trade agreements between the USA and various countries including the EU, New Zealand and Australia.

The EU is another major market, taking 100,000 tonnes of product in 2009, (again, much of it under preferential trade agreements).

Other key markets for cheese are Japan, the Middle East Gulf States and North Africa.

 

Skim Milk Powder (SMP)

SMP trade has long been dominated by the major exporters (EU, New Zealand and Australia). However, in recent year the USA has increased its exports of SMP significantly to become of the largest players. Increasing milk production is California has seen a sharp jump if milk powder drying capacity in recent years.

In 2009 world trade in skim milk powder surpassed 1.0 million tonnes.

Major markets for Australia, and to a lesser extent New Zealand suppliers, are focused primarily in South East Asia.

Important markets for EU and USA suppliers have traditionally been Central and South America and North Africa.

In addition to the market for human consumption, a significant share of the international trade in SMP is stockfeed to countries such as Japan. The USA and some Eastern European countries are the main suppliers to this market.

 

Wholemilk Powder (WMP)

WMP trade is dominated by supply from the EU and New Zealand with Australia, Argentina and Brazil increasing its share in recent years.

In 2009 world trade in whole milk powder surpassed 1.8 million tonnes.

The Middle East, Africa, Central and South America are the major export markets for this product.

 

Casein

Casein exports are dominated by New Zealand and EU suppliers such as Ireland.

In recent years world trade in casein has fluctuated between 200,000and 325,000 tonnes each year.

Japan and the USA remain key end user markets for this product.

 

Lactose

Lactose exports are dominated by the USA and EU suppliers such as Netherlands and Germany.

In 2009 world trade in lactose reached 350,000 tonnes.

Japan, Mexico and China remain key end user markets for this product.

 

Whey Powder

As global cheese production grows, so does the availability of whey. Each year, more and more whey is process into higher valued ingredients products.

The USA and the EU are major exporters of whey powders, with Australian supply also growing rapidly in recent years.

In 2009 world trade in whey powders surpassed 1.0 million tonnes.