Analysis Dairy
Whey powder export achieves unexpected record
The sentiment in the whey powder market has felt quite weak throughout the year, but the most recent figures from Eurostat show that an export record was nevertheless achieved in May. Not only on a European scale, but also the Netherlands shipped such large volumes in a month for the first time. China has also been importing more in recent months.
In May, European whey powder exports amounted to 71,077 tons, marking the highest export volume ever. Compared to the same month last year, this is an increase of nearly 20%. The total volume for the first five months of this year was 300,000 tons, compared to 280,000 tons in the same period in 2023. In May, France, Poland, and Germany were the largest European exporters. The Netherlands followed, after Ireland, in fifth place with 9,465 tons. This is also a record for our country.
The high sales figures come as a bit of a surprise, considering the subdued market sentiment in recent months. It is possible that some 'dump sales' are included in the export figures, as market inventories are described as ample.
China Largest Market
China is the main market for whey powder. The import volume in May of 21,599 tons was the highest since November 2022. However, it did not reach a record import level. The other major markets after China are quite fragmented. Japan, South Korea, and the Philippines still import substantial volumes each month, ranging from a few thousand tons. The rest of the market is mainly crumbs.
Approximately a quarter of Chinese imports come from the Netherlands, meaning that exporters from our country have a relatively large market share in the Asian country. China also imported higher volumes in April. In the first quarter, Chinese import figures were lower than last year. The rising trend is noteworthy. Whey powder is an important raw material in Chinese animal feed, but on paper, China actually needs less product, as the pig population is decreasing due to government stimulus policies.
US Also Selling More
Not only Europe, but also the United States are exporting more whey powder. In the first five months of this year, sales increased by 6% to 252,348 tons. The increase in May was even stronger at 17%. Like in Europe, China is the main market for Americans.
Interestingly, the sentiment in the whey powder market is improving somewhat, even in the US. The whey powder price in recent weeks has risen by about 10% to $991 per ton. The DCA price has also been on the rise for two weeks and has increased to €875 per ton.
