According to our latest monthly Global Dairy Directions Trade Insights , January global trade fell 7.2% YOY in milk solids equivalent (MSE) terms, taking trade in the three months to January down 0.8%. Two-way trade between the EU-27 and UK explained most of the decline in January, and if that is ignored, the fall was 2.5%. Cheese trade was down 14.1% YOY, again mostly reflecting weaker post-Brexit trade between the UK and the EU-27.

SMP trade was a significant 11.7% below the prior year, with falls in shipments to all regions other than China and Sth America as average FOB prices grew strongly for the big three exporters. WMP trade increased 3.6% YOY in January, but trends were mixed. Shipments to China and North Africa grew and cross-border trade into Brazil from its neighbours continued higher, offsetting weaker shipments to Sth East Asia and the Middle East. After steadying in December, butterfat trade resumed its slide as both butter and AMF were close to 10% weaker YOY.

China was back to the top of the regional trade league table for the January quarter while Sth America was the only other region to post a gain in the quarter. The MENA sub-regions were at the foot of the table.