Demand from EU and US helps drive UK dairy exports to £1.8bn

(Photo: AHDB)
(Photo: AHDB)

Demand from both the EU and US helped drive the value of UK dairy exports to £1.8 billion in 2024, new figures by AHDB show.

Dairy exports fared well in 2024 against a backdrop of challenging trading conditions which impacted competitiveness on the global stage.

Despite this tough environment, the total value broadly matched 2023, with export values to the EU and US rising in particular.

More than 76% of the UK’s total dairy exports were shipped to the EU – the UK's closest and largest market – and were worth £1.4 billion, up 5.6% on the year.

With total UK cheese exports hitting the highest level since 2020 at £887 million, 72% of shipments worth £641 million headed to the bloc – up 9.8% on the year.

The United States is the UK’s single largest export market for dairy outside Europe, and 2024 saw shipments increase by 5.7% on the year.

The bulk of UK dairy exports to the US is cheese, worth £75 million in 2024, a jump of 13.5% compared to 2023.

Lucy Randolph, AHDB head of international trade development said: “The performance of our cheese exports to the EU was particularly encouraging and included an impressive 71.8% increase in value of shipments to Germany worth £48m.

"We intend to build on this through our extensive programme of activity, which includes our dairy team taking part for the first time at Anuga in Cologne in October.”

Cheese exports to the US showed impressive growth in 2024 and the demand for high-quality table butter is growing, according to the levy organisation's figures.

While the threat of tariffs looms across agri-food products, the industry has successfully weathered tariffs on dairy products to the US in the past.

"We remain quietly confident of the value of our quality dairy products to this critical market," Ms Randolph said.

While the total value of dairy exports to the Middle East fell, there were notable gains in the United Arab Emirates and Qatar, up 18.9% to £36.2m and 15.3% to £6.5m respectively.

Cheese exports to the UAE soared by 52.5% to £23.4m, and to Qatar by 47.7% to £3.3m, reflecting the positive impact of food events like Gulfood and the Lulu Qatar retail promotions.

While trade in Asia also presented challenges in 2024, not least with tight economic conditions impacting demand, good opportunities persisted in high-income countries with an established UK dairy presence, like Singapore.

Ms Randolph concluded: “It’s exciting to explore new markets such as Thailand, identified as a priority market for dairy exporters following the UK Dairy Showcase last autumn.

“AHDB will continue to work with industry and government to help ensure our world-class dairy produce thrives on the global stage in 2025 and beyond.”