In this monthly dairy industry update, our analysts will share valuable insights about the dairy industry. This month: the trade volume of Dutch cheeses (Gouda, Maasdam, Edam) is down 16.2% in June 2022 compared to June 2021, prices are up 42.0%.
Market Monitoring of the dairy industry
Market monitoring helps agri-food companies objectively evaluate their current position within the market and the development of that position. Furthermore, it helps to spot new growth opportunities and whether the market is saturated.
For the A-INSIGHTS Market Monitor, we analyze the global trade in dairy products on a monthly basis. Derived from local customs agencies and statistics offices, the data gives us insight into monthly trade volumes and prices for all major importers and exporters. Combined with our sector expertise, we can provide you with an up-to-date view of the developments in the global dairy market.
Continued supply pressure drives a 42.0% year-over-year average trading price increase in June
As reported in our last update the price pressure and volume decline are in line with raw milk deliveries in major production countries the Netherlands and Germany.
The reduced milk supply in Western Europe continues to boost the price levels of Dutch cheeses (Gouda, Edam, Maasdam) in June 2022. On average, prices for these cheeses were up 42.0% compared to June 2021, with trade volumes down 16.2%. Year-to-date, prices are up 29.9% and volumes down 6.3%, showing that volumes are still in decline in recent months.
Netherlands and Germany volume decreases roughly in line as price gap decreases
The cost inflation has closed part of the gap between export prices for the Netherlands and Germany in the months. The price gap between the Netherlands and Germany has shrunk from €0.95/kg (30.1%) in June 2021 to €0.26/kg (5.0%) in June 2022.
Contrary to last month the more expensive Netherlands cheese export volume (down 5,449 tonnes; 13.3%) developed roughly in line with the decrease in German exports: 3,622 tonnes (13.2%). This is a substantial difference from previous months in which Germany outperformed: in May, Netherlands exports were down 658 tonnes whilst German exports were up 62 tonnes. In April, Netherlands exports were down 1,261 tonnes whilst German exports were up 1,319 tonnes.
Import decreases at most importers, volume decline is mainly driven by Japan and Chile
With import volumes increasing slightly for most substantial importers of Gouda, Maasdam, and Edam, the majority of volume decline can be found in Japan (-65.4%) and Chile (-89.2%). Imports by Japan declined steadily in 2022 after record imports in 2021. Chile's fallen import volumes dropped the country outside the top 10 worldwide importers.
Import volumes dropped from 2,329 tonnes in June 2021 to 252 tonnes in June 2022. Chile imports fluctuated substantially over the past years, but as the year-to-date volume is down by over 50%, this also appears to be a softened demand.
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