W11 Dairy Update: Cheese Boom in Germany Meets Price Woes, Turkish Dairy Production on the Rise

Published 2024년 3월 22일

In W11 in the dairy landscape, German dairy exports in 2023 showcased a contrasting view, with cheese exports reaching a record high of 1.4 mmt, marking a 6% YoY increase. Foreign sales of bulk milk powder and cream surged by nearly 30% YoY, while condensed milk exports also saw a robust 20% rise. However, despite the record cheese exports, the overall export value of German dairy products in 2023 decreased by 3% YoY, attributed to lower global dairy sales prices. In contrast, Türkiye’s dairy industry started 2024 positively, with cow milk collection by commercial dairy enterprises rising by 4.7% YoY in Jan-24. Notably, butter and cheese production saw significant increases of 20% and 12.3% YoY, respectively, while other dairy products like buttermilk, yogurt, and drinking milk also exhibited growth

Record Cheese Volumes Marred by Declining Prices in German Dairy Exports

Data from the Central Milk Market (ZMB) based on preliminary figures from the Federal Statistical Office (DESTATIS) reveals contrasting trends in German dairy exports for 2023. Preliminary data indicates a significant increase in cheese exports, rising by approximately 6% year-on-year (YoY) compared to 2022 to a record high of 1.4 million metric tons (mmt). Top export destinations, Italy, Netherlands, and France, maintained their positions. Notably, exports to third countries outside the European Union (EU) also grew by 5% YoY, reaching 207 thousand metric tons (mt).

Foreign sales of bulk milk powder and cream witnessed a robust increase of nearly 30% YoY, reaching 1.35 mmt. Condensed milk exports also performed well, with a YoY rise of 20% to 334 thousand mt. Skimmed and whey powder exports remained largely flat compared to 2022. Exports of fresh dairy products and whole milk powder experienced a slight decline.

Despite the record volume of cheese exports, the overall export value of German dairy products in 2023 decreased by approximately USD 373 million, representing a 3% YoY decline. This decline is attributed to lower global dairy sales prices compared to the record highs witnessed in 2022.

Turkish Dairy Production Sees Upward Trend in Jan-24

Data released by the Turkish Statistical Institute (TUIK) reveals a positive start to 2024 for the Turkish dairy industry, with increased production across several key categories in Jan-24 compared to Jan-23. The volume of cow milk collected by commercial dairy enterprises in Jan-24 rose by 4.7% YoY, reaching 915,522 mt.

Butter production witnessed a significant increase of 20% YoY in January, while cheese production from cow's milk climbed by 12.3% YoY. Production of buttermilk, yogurt, and drinking milk also exhibited growth in January. Buttermilk production increased by 13.2% YoY, yogurt production rose by 9.2% YoY, and drinking milk production grew by 6.0% YoY.