Milk powder with fat content of ≤1.5% market in Europe

Earlier Report Observations

Between 2018 and 2021, the European market for milk powder with ≤1.5% fat experienced fluctuations in volume, moving from 1.05 million tonnes to 949 thousand tonnes. The market's slight growth in 2019 coincided with a 24% drop in skimmed milk powder output in the Netherlands, tightening EU-wide supply. However, a significant price surge for skimmed milk powder in 2020, reaching 50% above the previous year's level, made exports more attractive and contributed to a decline in domestic market volume. This was followed by a further contraction in 2021 as EU Regulation 2021/871 increased feed costs, putting upward pressure on production expenses for milk powder.

The market volume surged by over 60% to 1.52 million tonnes in 2022. This sharp increase was primarily driven by the Russian-Ukrainian conflict, which escalated transport and energy costs, disrupting trade flows and making exports less favorable. Simultaneously, the establishment of a new EU price support mechanism for skimmed milk powder guaranteed a minimum price for producers, helping to sustain domestic production and availability.

In 2023, the market corrected, falling to 1.21 million tonnes. A key driver was the post-peak decline in skimmed milk powder prices, which pressured producer margins but made European products more competitive for export. This was amplified by soaring demand from African markets like Nigeria and Egypt, leading to higher export volumes from the EU and reducing domestic supply.

Production milk powder with fat content of ≤1.5% in Europe

In kind, 2017-2020, K t

Top producers of milk powder with fat content of ≤1.5%, 2017-2020

World map of production of milk powder with fat content of ≤1.5%, 2017-2020

After two years of decline, Europe's production of milk powder with a fat content of ≤1.5% has rebounded. In 2019, output reached its lowest point at 1 846 K t, marking a 4.0% decrease. However, by 2020, production rose to 1 985 K t, showing a moderate increase of 7.6% compared to the previous year.

Annual dynamics of production in Europe in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Europe's production of milk powder with a fat content of ≤1.5% has grown for the second year in a row. In 2018, output hit its lowest value at 7 157 M $ US, with a significant decline of 16.6%. From 2017 to 2020, overall production increased by 17.7%, averaging an annual growth rate of 5.6%. By 2020, the value reached 10 099 M $ US, reflecting a sharp rise of 29.7% from the year before.

Annual dynamics of production in Europe in value, 2017-2020, M $ US

Exports milk powder with fat content of ≤1.5% from Europe

Exports in kind, K t

Europe's exports of milk powder with a fat content of ≤1.5% showed varied trends in recent years. In 2018, shipments peaked at 1 439 K t, with the largest increase of 10.6%. The following year, 2019, saw the lowest volume at 1 263 K t, accompanied by the biggest decline of 12.2%. In 2020, exports recovered slightly to 1 312 K t, up by 3.8% year-on-year.

Annual dynamics of product's exports from Europe in kind, 2017-2020, K t

From 2017 to 2020, Europe's exports of milk powder with a fat content of ≤1.5% were widely distributed across many countries. Even the top destinations—China, Algeria, and Indonesia—combined accounted for only 17.2% of total export volumes.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Europe in kind, 2017-2020

Exports in value, M $ US

Europe's exports of milk powder with a fat content of ≤1.5% have increased for two consecutive years. In 2018, the value was at its minimum of 3 162 M $ US, with the largest decline of 7.6%. The following year, 2019, recorded the biggest increase of 29.2%. Over the 2017-2020 period, exports grew by 28.6%, with a compound annual growth rate of 8.7%. By 2020, exports reached 4 399 M $ US, showing a modest advance of 7.7% compared to the previous year.

Annual dynamics of product's exports from Europe in value, 2017-2020, M $ US

Between 2017 and 2020, Europe's exports of milk powder with a fat content of ≤1.5% in value terms were spread across a diverse range of partner countries. The leading markets—China (8.5% of export value), Algeria (6.7%), and Indonesia (3.1%)—together made up just 18.3% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Europe in value, 2017-2020

Imports milk powder with fat content of ≤1.5% to Europe

Imports in kind, K t

Europe's imports of milk powder with a fat content of ≤1.5% have declined for the second year in a row. In 2018, imports reached their highest point at 571 K t, with the largest increase of 27.7%. From 2017 to 2020, overall imports decreased by 33.4%, averaging an annual decline of 12.7%. By 2020, imports fell to 298 K t, reflecting a sharp drop of 39.6% compared to 2019.

Annual dynamics of product's imports to Europe in kind, 2017-2020, K t

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Europe in kind, 2017-2020

Imports in value, M $ US

Europe's imports of milk powder with a fat content of ≤1.5% have risen for two consecutive years. In 2018, the value was at its lowest of 1 411 M $ US, with the largest decline of 9.5%. The following year, 2019, saw the biggest increase of 19.1%. Over the 2017-2020 period, imports grew by 14.5%, with a compound annual growth rate of 4.6%. By 2020, imports amounted to 1 783 M $ US, up by 6.1% from the previous year.

Annual dynamics of product's imports to Europe in value, 2017-2020, M $ US

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Europe in value, 2017-2020