
Total export value falls 17% to £487M as sharp volume declines in butter, milk, cream, and yogurt outweigh cheese and milk powder strength.
Total UK dairy export volumes declined by 25 percent year-on-year to 277,800 tonnes in the second quarter of 2026, according to the latest quarterly trade review from the Agriculture and Horticulture Development Board (AHDB). Total export revenue contracted 17 percent to £487 million ($640 million USD), driven down by lower physical shipments and weaker international commodity prices across milk, cream, whey, and dairy fats. Total UK dairy import volumes also registered modest declines over the period, led by reduced inflows of fluid milk, cream, and butter.
Bucking the wider trade slump, British cheese exports continued their multi-quarter expansion to hit an all-time volume high in Q2 2026. Total cheese export volumes rose 15.3 percent (+8,000 tonnes) year-on-year, supported by strong demand across both mature and emerging export destinations. European Union buyers drove the largest volumetric increases—led by the Netherlands (+1,800 t), France (+1,600 t), and Belgium (+1,000 t)—while non-EU growth was bolstered by shipments to China (+1,000 t), Singapore, Canada, and Middle East and North Africa (MENA) markets including Libya (+1,900 t) and Bahrain (+1,400 t). However, overall cheese export value slipped 4 percent due to softer global commodity pricing.

Milk powders recorded the largest overall volume increase across export categories, jumping 22.2 percent (+9,400 tonnes) year-on-year. Plentiful domestic supplies and competitive pricing following record milk deliveries during the 2025/26 milk year supported heavy shipments into both EU destinations (such as Germany, France, Spain, and Poland) and non-EU buyers (including Egypt, Vietnam, Malaysia, and Mexico). Conversely, exports to China remained subdued due to softer domestic consumer demand and demographic headwinds.
The strong performance in cheese and powders was entirely overshadowed by sharp declines across fluid dairy, fats, and fermented products. Yogurt exports experienced a severe contraction of 49.7 percent (-5,300 tonnes), driven by sharp reductions in shipments to Ireland (-4,900 t) and Southeast Asia. Butter exports fell 4.3 percent (-600 tonnes) in volume and tumbled 37 percent in value as average market realizations weakened, with steep shipment drops to Belgium (-1,800 t), Italy (-1,000 t), and France offsetting isolated export gains to the Netherlands and the Middle East.

Looking ahead, AHDB notes that expanding U.S. manufacturing capacity and competitive pricing will pose stiff competition for UK dairy exporters, particularly within bulk industrial cheese segments. Additionally, ongoing shipping disruptions in the Red Sea and broader Middle East continue to cap growth potential into regional markets. Navigating these export headwinds will require British processors to prioritize high-value, branded specialty cheeses and protein-enriched formulations to preserve margins in an increasingly competitive global trade environment.
Source: AHDB (Agriculture and Horticulture Development Board)
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