MMO Economic Board by Solina Romania

Milk Market Observatory Last update : 23.05.2017

MMO Economic Board Meeting of 23 May 2017

o The 21st meeting of the MMO Economic Board

took place on 23 May 2017, with the participation of experts from the various steps in the milk supply chain: CEJA (young farmers), COPACOGECA (producers and cooperatives), ECVC (Via Campesina), EMB (European Milk Board), EDA (dairy industry), Eucolait (dairy trade) and Eurocommerce (retail). Presentations and information exchanged during the meeting showed the following. o EU milk collection decreased by 2.3% in Q1 2017

(January-March), i.e. by 900 000 t (no leap day correction). The drop in March has been particularly strong in DE, FR, UK, IT and DK in volume terms. o Average EU farm gate milk prices reached 33.1

c/kg in March 2017, in line with the last 5 years' average, but 17% higher than in March 2016. Estimates for April point to a slight decrease to 33 c/kg in April. o EU dairy product prices

have been generally recovering in recent weeks. New record levels have been reached for butter (450 â&#x201A;Ź/100 kg). Divergences between protein and fat prices are deeper, hinting at a structural change. With present exchange rates, EU dairy prices are generally more competitive than Oceania but less than the US.

o There

have been no sales out of public intervention so far in 2017, while buying-in has resumed since the beginning of April. Quantities remain however limited (7 365 t by mid-May)

o The assessment of EU stock levels based on a

residual approach (production + imports â&#x20AC;&#x201C; consumption - exports) shows normal stocks for SMP, surplus production being in public intervention. Butter stocks have slightly increased but remain below normal levels given solid demand. Cheese stocks have also increased but stay at normal levels thanks to dynamic demand. o World milk production closed Q1 2017 with a

decrease by 1.25%, mainly driven by the EU where production fell for the 10th consecutive month. NZ and Australia are expected to end their respective season with negative figures but the

decrease has been slowing down lately. The US continue to be the major exception, with growth rates month after month. o Global

demand appears healthy as well as domestic use. EU exports are performing particularly well. Imports have increased in most destinations, in particular in China.

o With

regard to EU retail sales, liquid milk consumption continues declining. Demand for butter, cheese and other value-added products (milk shakes, desserts) shows more positive developments. Increased competition was confirmed in the UK from vegetal based substitute products.

o The next publication of the Commission's Short

Term Outlook (due in July) is being worked on, integrating latest developments. On the positive side, account is taken of a 3.5% reduction in EU milk production in Q4 2016, followed by a 2% reduction in Q1 2017, lower milk collection in South America, NZ and Australia, increasing EU demand in particular for cheese, butter and WMP, high butter prices and good exports. On the negative side, consideration is given to a sizeable dairy herd, a projected annual increase by 0.6% of EU milk deliveries, continuous increase in US production, expected recovery in NZ milk collection and the existence of SMP public stocks. Weather conditions in the coming weeks will be key for forage quality and quantity, which play a major role in milk production. o Facts and figures were also discussed on the UK

milk sector, its high reliance on other EU MS to meet its internal needs, its export performance on third country markets, its particular deficit in butter and cheese and the MS most engaged in dairy trade with the UK (Ireland, France, the NL and Belgium being both concerned on the import and export side). o Overall, the market continues to be characterized

by an unprecedented price gap between fat and protein. Market sentiment is however rather positive, given dynamic demand both in the EU and third countries.

ANNEX 1

Milk Market Situation

European Commission

Milk Market Situation Brussels, 23 May 2017

EU Milk deliveries

23/05/2017

EU Productions

23/05/2017

!!! Data from some Member States are confidential and are NOT included in this table !!!

EU Milk deliveries Evolution of Raw milk deliveries Mar 17 compared to Mar 16

23/05/2017

Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28.

evolution in % % MS CY + 15,8% RO + 5,9% PL + 5,2% IE + 3,9% BG + 3,2% AT + 1,2% BE + 1,1% ES + 1,1% LU + 0,9% NL + 0,7% SI + 0,6% HU + 0,5% LV + 0,5% EL + 0,4% EE + 0,3% PT + 0,3% CZ - 1,0% LT - 1,0% FR - 1,2% UK - 1,5% SK - 1,6% IT - 1,8% FI - 1,9% SE - 2,2% DE - 2,3% MT - 3,3% HR - 3,5% DK - 3,9% EU28

- 0,4%

evolution in 1000 Tons Tons MS PL IE NL ES RO BE AT CY BG HU PT SI LV LU EL EE MT LT SK HR CZ FI SE DK IT UK FR DE

+ 50 + 24 +9 +7 +5 +4 +3 +3 +2 +1 +0 +0 +0 +0 +0 +0 -0 -1 -1 -2 -3 -4 -6 - 18 - 19 - 20 - 28 - 66

EU28

- 60

23/05/2017

18/05/2017

PSA ending stocks 2017

JAN

FEB

MAR

SMP

62,1

67,9

58,5

BUTTER

15,9

8,4

4,3

CHEESE

13,5

12,6

12,3

(x 1000 t)

18/05/2017

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

18/05/2017

ANNEX 2

EU dairy products monthly stock estimates at the end of March 2017

EDA

EU dairy products monthly stock estimates at the end of March 2017 Milk Market Observatory Economic Board May 23rd , 2017

Methodology •

For each dairy product and each month, the stock estimates are based on the equation: – Stock variation = EU production + EU import – EU internal consumption – EU exports

•

ZMB balance sheets and forecasts have been used as references for : – End of year stocks levels in 2012 and 2013 – Yearly consumption levels in 2012, 2013, 2014 and forecast for 2015

• • •

Monthly production statistics are based on ZMB Dairy World publications. Exports and imports figures are based on MMO website figures. The initial stocks entered in the model at the beginning of 2012 are : – SMP: 152 000 t – Butter: 80 000 t – Cheese: 200 000 t (arbitrary basis)

• • •

The green parts in each graph mean that this stock level can be considered as normal for the month. The orange part means that this stock level can be considered as too high for the month These qualifications are based on the EDA analysts’ personal views and past market observation.

ANNEX 3

Perspectives from the Dairy Trade

Eucolait

Perspectives from the Dairy Trade MMO Economic Board 23 May 2017

Outline

• Global Supply • Global exports & demand • Developments in key import markets • Conclusions

Milk production in key export regions in Q1 2017

Production outlook •

Falling EU volumes for 10 consecutive months (March -0,5% yoy) but improved milk prices incentivize output and milk flows are recovering (led by PL & IT, largest decreases in DE & FR). Very cold spring in almost all EU countries likely to result in a rather flat peak/spring flush in Q2

•

NZ milk production grew sharply by +9,2% in March (yoy) despite serious flooding (milk production turned positive in February for the 1st time in 5 months). Season to date Jun-Mar just down -1,5%. Outlook: further increases to expect

•

Australian milk output is gradually recovering: -5% in March (yoy), season to date (Jul-Mar) -8,09%. Outlook: full season Jul-Jun likely down -6,8%, continuing to limit export capacity

•

US milk production rose “only” +1,7% in March (yoy), output down in California and Idaho. Outlook: growth rates are expected to decrease slightly, current estimate for 2017: +1,7%

•

Gradual recovery of milk production in South America in 2017

Dairy exports of main market players in ME

Main EU export markets for all dairy products (in value - â&#x201A;Ź) Jan-Mar 2015

Jan-Mar 2016

Jan-Mar 2017

SMP trade •

EU SMP exports: –

•

Growth rate Jan-Mar 17/16: +6,7%

Combined SMP exports: –

Growth rate Jan-Mar 17/16: -1,1%

WMP trade •

EU WMP exports: –

•

Growth rate Jan-Mar 17/16: +16,5%

Combined WMP exports: –

Growth rate Jan-Mar 17/16: -3,5%

Whey powder trade •

EU whey powder exports: –

•

Growth rate Jan-Mar 17/16: +3,6%

Combined whey powder exports: –

Growth rate Jan-Mar 17/16: +6,6%

Butter trade •

EU butter exports: –

•

Growth rate Jan-Mar 17/16: -11,9%

Combined butter exports: –

Growth rate Jan-Mar 17/16: -15,2%

Cheese trade •

EU cheese exports: –

•

Growth rate Jan-Mar 17/16: +9,2%

Combined cheese exports: –

Growth rate Jan-Mar 17/16: +0,6%

Trade of milk & cream •

EU milk & cream exports: –

•

Growth rate Jan-Mar 17/16: -13,5%

Combined milk & cream exports: –

Growth rate Jan-Mar 17/16: -4,1%

Infant formula trade •

EU infant formula exports: –

•

Growth rate Jan-Mar 17/16: +11,1%

Combined infant formula exports: –

Growth rate Jan-Mar 17/16: +4,9%

USA imports

China imports

Brazil imports

Algeria imports

Philippines imports

Conclusions •

Recovery has been primarily driven by lower output globally in H2 2016 and early 2017

•

Milk production is expected to continue increasing in comparison to last year although the peak in Europe has been weakened by the cold spring

•

Overall global demand seems to be quite healthy despite low oil prices and demand with EU is reported to be solid as well.

•

Huge gap between fat and protein prices remains. SMP value vs butter has fallen from 70% (5-year average) to 45%. The butter market is increasingly overheated while SMP prices have climbed up slightly from the intervention level on the back of lower production and improved demand. Intervention stocks continue affecting sentiment.

•

Aside from the impact in 2 years time, fears of a hard Brexit consisting of reintroducing tariff walls (MFN duties) and cumbersome import procedures may lead to a reduction of EU-UK trade flows in the short term

•

Efforts to improve market access through FTAs and their correct implementation (Canada cheese quota) remain crucial

- Thank you for your attention -

ANNEX 4

Trends in sales of Milk & Dairy products â&#x20AC;&#x201C; a retail perspective

EuroCommerce

TRENDS IN SALES OF MILK & DAIRY PRODUCTS â&#x20AC;&#x201C; A RETAIL PERSPECTIVE Milk Market Observatory 23 May 2017

Belgium Product

April 2017 vs. April 2016 Consumer Price Index

Whole milk

-10,64%

Semi-skimmed milk

-7,22%

Concentrated and powdered milk

+4,89%

Yoghurt

-1,41% +10,64%

Butter

Dairy products

Source: Nielsen ScanTrack 2

% change in volume

% change in value

% change in price

-1,1%

+0,0%

France

Source: Kantar Worldpanel 3

France

Italy

Portugal Period ending April 2017

Product category

Volume (% change, year-to-date)

Volume (% change, year-on-year)

Value (% change, year-to-date)

Value (% change, year-on-year)

Fresh milk

-12,1%

-11,5%

-10,8%

UHT milk

-5,6%

-7,3%

-0,6%

-5,4%

Yoghurt

-4,0%

-3,3%

-3,4%

-0,9%

Fresh cheese

-2,1%

0,0%

+1,0%

+0,7%

Butter

-4,0%

-2,0%

+1,3%

-1,0%

UHT cream

+0,4%

+1,0%

+1,4%

+0,6%

Fresh dessert

+11,4%

+13,0%

+12,3%

+16,0%

+1,4%

+2,5%

+2,8%

+1,9%

Cheese

Source: Nielsen 6

Spain Period ending March 2017

Product category

Volumes (% change March 2017 March 2016)

Volumes (% change YTD March 2017)

Value (% change March 2017 vs March 2016)

Standard liquid milk

-4,9%

-4,5%

-5,8%

-5,7%

-0,9%

-1,2%

Other types of milk

+5,2%

+5,0%

-1,0%

-1,3%

-5,9%

-6,0%

Milkshakes

+8,7%

+4,1%

+9,0%

+5,0%

+0,2%

+0,8%

Yoghurts and fermented milk

+5,2%

+1,1%

+2,9%

-1,2%

-2,2%

-2,3%

Fresh desserts

-0,1%

-1,9%

+0,7%

-1,1%

+0,8%

Fresh cheese

-0,9%

-3,4%

-0,8%

-3,0%

+0,1%

+0,4%

Local, traditional cheese

+7,2%

+4,5%

+5,4%

+3,3%

-1,8%

-1,1%

Processed cheese

-2,1%

-4,8%

-2,0%

-4,6%

+0,1%

+0,3%

Imported cheese specialties

+4,5%

+3,5%

+4,3%

+3,0%

-0,1%

-0,5%

Value (% change YTD March 2017)

Price (% change March 2017 vs March 2016)

Price (% change YTD March 2017)

Spain Period ending March 2017 Volume (% change March 2017 vs March 2016)

Volumes (% change YTD March 2017)

Value (% change March 2017 vs March 2016)

Value (% change YTD March 2017)

Price (% change January 2017 vs January 2016)

Price (% change YTD March 2017)

Grated cheese

+0,7%

-1,1%

+2,4%

+0,5%

+1,6%

+1,7%

Other types of cheese

+1,9%

-0,5%

+0,2%

-1,4%

-1,6%

-0,9%

Cream

-1,0%

-3,2%

-0,1%

-3,6%

+1,0%

-0,5%

Butter

+0,7%

+4,0%

+4,7%

+5,8%

+4,0%

+1,8%

Desserts and yoghurt with long conservation

-25,6%

-24,6%

-30,5%

-29,4%

-6,7%

-6,3%

Non-liquid milk

-3,8%

-2,7%

-7,0%

-6,4%

-3,3%

-3,8%

Total dairy products

-0,4%

-1,3%

-0,5%

-1,5%

+0,8%

-0,2%

Product category

Source: Nielsen and FeNIL

Spain

Source: Nielsen and FeNIL 9

Sweden Period ending April 2017

Product category

Milk Hard cheese Cream

Yoghurt Cottage cheese/curd Cold desserts Butter Source: Nielsen 10

Volume (% change in the last 4 weeks)

Volume (% change last 52 weeks)

-4,6%

-1,9%

+1,2%

+0,6%

-2,2%

-0,9%

+10,6%

-0,3%

+13,2%

+0,9%

+16,7%

+1,3%

-4,7%

-0,2%

-4,0%

-0,4%

-15,0%

+1,8%

-13,0%

-3,4%

+14,5%

+13,7%

+19,0%

+19,5%

-0,4%

+5,1%

+0,6%

+2,9%

Value (% change in the last 4 weeks)

Value (% change last 52 weeks)

United Kingdom

United Kingdom: contract league table

United Kingdom unit price (p)

Liquid milk†

Apr-17

Mar-17

Month Diff.

Apr-16

Annual Diff.

Retail (4 pints)*

103

n/c

100

Doorstep (1 pint)**

n/c

Feb-17

Jan-17

Month Diff.

Feb-16

Annual Diff.

Total Cream

252

251

241

+11

Double Cream

226

213

+13

Single Cream

215

211

191

+24

Apr-17

Mar-16

Month Diff

Apr-16

Annual Diff.

584 574 541

590 589 541

-7 -15 0

593 597 532

-9 -23 +9

ppl

Cream††

p/kg

Cheddar††

Total market Mature Mild

† updated monthly ; †† updated quarterly ; *pasteurised (private label) **milkandmore monthly spot price - semi-skimmed glass bottle Source: Kantar Worldpanel Online 14

ANNEX 5

Dairy draft short-term Outlook

European Commission

Dairy Draft Short-term Outlook

MMO

23.05.2017

Sophie HĂŠlaine DG Agriculture and Rural Development European Commission

Main factors driving milk prices

• The 3.5% reduction in EU milk • • • •

• •

In 2017, several factors could weigh on milk and dairy product prices: • the seasonal peak in EU milk collection; • the sizeable dairy herd at the end of 2016; • 2017 EU milk deliveries are expected to be 0.6% above last year; • the continuous increase in US supply; • an expected recovery in milk collection in New Zealand; • the accumulated SMP stocks.

production in Q4 of 2016/2015, followed by the 2% reduction in Q1 of 2017/2016, on the top of the seasonal decline; the lower milk collection in South America, New Zealand and Australia; a sustained increase in the EU demand, estimated at 1.5% above 2015 (+1.5 million t of milk equivalent), in particular for cheese, butter and whole milk powder (WMP); remunerative prices for butter; good EU exports. 2

2017 EU milk collection +0.6% EU milk collection forecast by quarter (1000 t) 42 000 41 000 40 000 39 000 38 000 37 000 36 000 35 000 34 000 33 000 32 000

2015 2017f in march

2016 2017 actual

3 Source: JRC MARS

Focus on DE, where current milk collection down DE milk collection forecast by quarter (1000 t) 8 600 8 400 8 200 8 000 7 800 7 600 7 400 7 200 7 000

Q2 2015

Q3 2016

2017f

DE cow slaughterings (1000 heads)

Pasture: favourable weather conditions in Feb/March But unusually low temperatures in mid-April However, no significant water stress Cow slaughterings: -1% Jan-Feb Dairy herd was in Dec 2016 2% below 2015

2014 2015 2016

Milk collection 4% below last year in Q1 2017.

2017

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

140 130 120 110 100 90 80 70 60

Exceptional adjustment aid: no increase in production in Feb-April 2017

Milk collection forecast 2017/2016: +0% 4

Focus on FR, where current milk collection down FR milk collection forecast by quarter (1000 t) 6 800 6 600 6 400 6 200 6 000 5 800 5 600 5 400 5 200

Q2 2015

Q3 2016

2017f

FR cow slaughterings (1000 heads)

Cow slaughterings: +2% Jan-March Dairy herd was in Dec 2016 1% below 2015 2014 2015 2016

Milk collection 4% below last year in Q1 2017.

2017

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

180 170 160 150 140 130 120 110 100

Pasture: mild temperature boosted vegetative growth in main pasture areas But absence of significant precipitation in April decreased soil moisture However, precipitation in the first half of May in Bretagne/Normandie

Milk collection forecast 2017/2016: +0.4% 5

Focus on the NL, where milk collection is expected 5% down NL milk collection forecast by quarter (1000 t) 800 700 600 500 400 300 200 100 000 900 800 700

It translates into strong cow slaughterings (+36% Jan-Feb)

2015

2016

NL cow slaughterings (1000 heads)

But farmers who invested in land, followed by housing and cows, will no longer have to cut cow numbers on the grounds that they were expanding sustainably But the dairy herd was in Dec 2016 4% above 2015

60 50 40 30

And milk collection was still above last year in Q1 2017. In April: -0.4% 'only'

2014 2015 2016 2017

20 10

Strong yield increases can be expected Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

0 Jan

3 3 3 3 3 3 3 3 3 2 2 2

Need to reduce phosphates => Obligation to reduce the dairy herd and livestock density

Focus on IE, where current milk collection strongly up IE milk collection forecast by quarter (1000 t) 3 000

Pasture: very good Cow slaughterings: +21% Jan-March

2 500 2 000

But dairy cow number was in Dec 2016 4% above 2015

1 500

And milk collection 1% above last year in Q1 2017. March: +4%

1 000 500 0

Q2 2015

Q3 2016

Milk collection forecast 2017/2016: +5%

2017f

IE cow slaughterings (1000 heads)

2014 2015 2016 2017

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

40 35 30 25 20 15 10 5 0

• In 2016, EU consumption +1.5 Mt of •

milk equivalent, mainly cheese, WMP, butter and yogurt. In 2017, a further increase is expected (+1 Mt)

Production in 2017, more cheese and less SMP Butter?

In 2017, EU exports to continue growing • In 2016

• Fat content • • •

•

Higher in 2016 (+1%) But down in March (-1.5%) 2017?

•

• Q1 2017/2016 EU production • • • • •

•

Liquid milk -3% Yogurt, cream +1% Cheese +2% SMP -9% Butter -4%

• Q1 2017/2016 EU exports • • • •

• Forecasts for 2017 • • • • •

Good EU and word exports of cheese, butter, liquid milk, infant formula, whey. But EU SMP exports -17% and world SMP exports -6%. Increasing imports in China, Russia, Mexico, US…

Less liquid milk More cheese (close to 2% more), cream Less WMP after strong increase in 2016 Less SMP (-11%) Butter? 9

Butter -15% (but to the US +++) Cheese +9% (Japan, Korea) SMP +7% (Algeria, China) WMP +12% (Algeria)

• Forecasts for 2017 • • • •

EU exports to continue growing But at a slower pace for cheese, butter, liquid milk Need of strong SMP exports to balance Infant formula and enriched powders

A butter price so high that milk can be well remunerated even with low SMP prices Milk price equivalent with a SMP price at intervention level and various butter prices

2017 / 2016 for a balanced market Production

SMP Forecast EU SMP balance (1000 t)

-11% - 170 000 t

Exports +24% +140 000 t (slightly more than in 2015)

Private stocks -50 000 t to 140 000 t

Intervention stocks -22 000 t to 330 000 t

Domestic use Source: DG AGRI, Short-term Outlook Winter 2017 11

+4% And also more direct use of proteins in FFMP

Thank you Milk market observatory http://ec.europa.eu/agriculture/market-observatory/milk_en

Short-term outlook http://ec.europa.eu/agriculture/markets-and-prices/short-term-outlook_en

Medium-term outlook http://ec.europa.eu/agriculture/markets-and-prices/medium-term-outlook_en

EU agricultural outlook conference http://ec.europa.eu/agriculture/events/2016-outlook-conference_en

ANNEX 6

Facts and figures on the UK milk sector

European Commission

Facts and figures on the UK milk sector AGRI G3 â&#x20AC;&#x201C; DG Agriculture European Commission Milk Market Observatory - 23.05.2017 â&#x20AC;&#x201C; Brussels

UK dairy imports from other EU MS compared to UK dairy imports from third countries (in volume & value)

U.K. Imports of dairy products in 2016 Quantity Quantity in tonnes of in tonnes of product milk equivalent (*) From EU countries

From NonEU countries

From EU countries

From NonEU countries

Value in 1000 EUR From EU countries

From NonEU countries

% from EU countries (in value)

CHEESES

466 246

4 575

2 784 527

27 320

1 566 998

20 245

99%

BUTTER

58 329

203

668 351

2 320

205 167

587

100%

231 502

373

231 502

373

242 575

2 361

99%

BUTTEROIL

13 215

1 492

182 623

20 617

43 188

4 275

91%

SMP

38 940

195 780

63 695

100%

WMP

23 437

169 267

51 738

100%

WHEYPOWDER

52 817

99 031

74 445

100%

CONDENSED

44 889

96 635

65 777

100%

4 912

62 081

139

29 353

181

99%

4 489 796

50 827

2 342 935

27 747

99%

FRESH

CASEINES TOTAL

(*) : based on fat and protein content

4 540 623

2 370 682

UK dairy exports to other EU MS compared to UK dairy exports to third countries (in volume & value)

U.K. Exports of dairy products in 2016 Quantity Quantity in tonnes of in tonnes of product milk equivalent (*) To EU countries

To Non-EU countries

To EU countries

To Non-EU countries

Value in 1000 EUR To EU countries

To Non-EU countries

% from EU countries (in value)

CHEESES

125 636

34 853

750 327

208 152

428 846

169 749

78%

FRESH

629 410

22 281

629 410

22 281

221 616

26 636

97%

WMP

49 929

23 317

360 599

168 402

39 839

91 230

68%

BUTTER

33 524

8 206

384 126

94 023

91 378

26 429

80%

BUTTEROIL

18 619

730

257 304

10 092

67 217

2 740

96%

SMP

31 115

9 809

156 441

49 318

46 983

47 754

76%

WHEYPOWDER

30 608

2 451

57 391

4 596

33 049

7 803

93%

CONDENSED

16 657

2 437

35 858

5 247

15 561

27 018

87%

1 141

241

14 415

208

1 454

944 696 400 813 1 345 509

82%

CASEINES TOTAL

(*) : based on fat and protein content

2 631 698 576 525 3 208 223

UK trade deficit in butter and cheese (2016 data)

Market size Production / deliveries

Net trade Export-import

(in '000 tonnes)

UK as % of EU

EU-28

153.248

14.542

Fresh products

46.920

8.231

Milk powders

4.264

Total Butter Total Cheese

Raw milk

EU-28

Selt Sufficiency

EU-28

EU-27

16.184

-1.332

112%

92%

115%

18%

1.065

420

102%

105%

102%

237

1.489

154%

116%

155%

2.341

150

196

-11

109%

93%

113%

9.550

403

729

-310

108%

56%

113%

UK main dairy trade partners - Import sources

U.K import of dairy products in 2016 - Main origins Quantities in Tonnes Country Ireland France Germany Netherlands Denmark Italy Belgium Greece Poland Cyprus Spain Slovakia Austria New Zealand Sweden Switzerland Lithuania Czech Republic Romania Norway Grand Total

BUTTER

BUTTEROIL CASEINES CHEESES CONDENSED

37 840 5 399 806 3 813 7 122 152 1 738 0 1 131

4 394 1 227 1 713 4 840

1 201

0 1 490

1 775

3 340 664 163 603 98 0 0

258

0 63 0 178

58 531

14 707

4 923

125 650 82 950 65 696 42 011 45 257 34 602 27 407 10 621 11 248 7 815 2 086 3 184 3 793 2 643 798 786 723 1 132 791 467 470 821

2 044 202 11 396 12 588 13 3 10 741 405 3 7 458 6

FRESH

In 1000 EUR WHEY POWDER

SMP

MILK EQUIVALENT (*)

WMP

80 464 28 370 36 608 8 423 31 624 85 17 204 13 949 11 748 2 509

17 482 9 510 3 770 1 085 220 146 1 144

21 433 6 059 12 200 5 863 409 34 689

6 149 6 495 5 047 3 057 106 7 1 260

2 524

1 649

1 653

3 801

3 352 341

893

475

1 034 41 743

481 1

44 889

231 875

38 940

24 8 27 52 846

1 136 0 24 84

23 437

1 544 286 717 487 566 729 443 147 387 410 209 346 250 775 77 382 112 546 46 682 45 901 19 018 22 763 39 035 18 693 4 695 8 676 7 474 7 611 2 840 4 540 623

Value 631 105 373 554 268 538 215 549 210 539 199 169 133 647 94 564 59 704 50 782 38 638 26 793 16 030 12 386 8 720 8 618 5 335 3 850 3 179 2 752 2 370 682

% in value 27% 16% 11% 9% 9% 8% 6% 4% 3% 2% 2% 1% 1% 1% 0% 0% 0% 0% 0% 0%

(*) : based on fat and protein content

UK main dairy trade partners â&#x20AC;&#x201C; Export destinations

U.K Export of dairy products in 2016 - Main destinations Quantities in Tonnes Country Ireland France Netherlands Belgium China USA Germany Denmark Spain Italy U.A.Emirates Hong Kong Poland Saudi Arabia Canada Sweden Ivory Coast Lebanon Guinea Grand Total

BUTTER

BUTTEROIL CASEINES CHEESES CONDENSED

7 037 7 374 4 295 10 636 200 899 2 924 70 252 580 36 3 9 1 550 2 325 32

2 186 605 2 124 9 318 193 481 105 245 2 097 7 30 1 167 20 168 137

11 1 2 0 110 51 2 0 0 1 0 1 0 10 0 0

36 877 25 170 17 131 2 876 650 8 329 9 964 8 802 6 620 5 363 2 409 440 2 957 3 022 998 2 912

1 971

41 729

19 349

1 160

160 490

FRESH

1 564 655 7 681 332 1 582 3 6 227 2 50 18 44 408 9 201 3 3

606 471 7 586 2 106 7 836 9 536 378 1 531 4 1 621 5 568 1 608 42 108 52 21

19 094

651 691

In 1000 EUR SMP 11 763 1 648 10 814 3 726 3 368 0 2 263 78 332 145 529 75 63 296 2 14 8 300 50 40 925

WHEY POWDER 6 330 1 898 16 717 330 136 473 1 635 2 503 990 52 216 7 81 0 37 3

33 059

WMP 25 571 398 18 154 2 786 1 983 1 2 473 98 300 120 0 204 14 51 2 3 466 2 342 3 251 73 246

MILK EQUIVALENT (*)

1 196 751 266 913 416 372 315 845 52 016 64 628 146 928 60 618 53 220 69 411 18 623 7 437 34 532 38 602 35 060 19 767 25 070 30 727 23 731 3 208 223

Value 389 444 125 600 119 195 99 503 95 134 79 431 64 226 33 886 28 857 23 503 19 204 17 842 17 671 16 875 15 608 11 893 11 066 10 750 9 790 1 345 509

% in value 29% 9% 9% 7% 7% 6% 5% 3% 2% 2% 1% 1% 1% 1% 1% 1% 1% 1% 1%

(*) : based on fat and protein content

Art. 50 Timeline

Useful links

Q&A on Art. 50: http://europa.eu/rapid/press-release_MEMO-17-648_en.htm European Council guidelines: http://www.consilium.europa.eu/en/press/pressreleases/2017/04/29-euco-brexit-guidelines/ Taskforce Art. 50 website: https://ec.europa.eu/commission/article-50-negotiationsunited-kingdom_en