Milk and cream shipments fell by 102,000 tonnes, the biggest driver of the overall decline, even as milk powder exports also grew.
UK cheese exports rose 15.3% year-on-year in the second quarter of 2026, reaching an all-time volume high.
Total UK dairy export volume fell 25% over the same period to 277,800 tonnes. The figures come from a trade review the Agriculture and Horticulture Development Board (AHDB) published on 20 August 2026.
Key Facts
- Up 15.3% year-on-year, UK cheese exports reached an all-time volume high in Q2 2026.
- Total UK dairy export volume fell 25% to 277,800 tonnes, driven mainly by milk and cream.
- Milk and cream shipments dropped 102,000 tonnes, a 43.5% decline that outweighed gains in cheese and powders.
The reversal ends four straight quarters of year-on-year growth in total UK dairy export volume, the first such decline since Q1 2025.
Exports to the EU fell by 94,400 tonnes, while non-EU exports edged up just 1,400 tonnes. The EU accounted for nearly all of the overall drop, per AHDB's review.
Total export value stood at £487 million, down 17% year-on-year. Lower physical shipments met weaker international commodity prices across most categories. AHDB's July 2026 monthly review, published a day earlier, flagged the same top-line trend.
Cheese and Milk Powder Exports Both Grew in Q2
Cheese was the exception. Export volumes rose 15.3% (8,000 tonnes) to reach an all-time high, AHDB's review shows. Value moved the other way, falling 4% as global commodity prices softened.
Demand grew across every region tracked in the review:
- Netherlands: +1,800 tonnes
- France: +1,600 tonnes
- Belgium: +1,000 tonnes
- Libya: +1,900 tonnes
- Saudi Arabia: +800 tonnes
- Germany: +600 tonnes
Smaller gains also came from Spain, Ireland, Singapore, Turkey, South Africa, Egypt, and Canada, AHDB reported.
Logistical challenges tied to the ongoing conflict in the Middle East capped further growth into the region. Expanding US cheese production capacity is also becoming a competitive threat, particularly for UK exporters selling into industrial markets.
Milk powders posted the biggest volume increase of any category, up 22% to add 9,400 tonnes year-on-year. Record milk deliveries during the 2025/26 milk year left processors with ample, competitively priced supply for both EU and non-EU buyers.
Exports to China, one of the world's largest dairy importers, stayed soft. AHDB pointed to a shrinking, ageing population and weaker consumer demand as the cause.
Milk and Cream Led the Decline in Other Categories
Everything else moved in the opposite direction. Milk and cream fell 43.5% (102,000 tonnes), the largest volume decline of any category. It was also the main driver behind the overall 25% drop.
- Milk and cream: -43.5% (-102,000 tonnes)
- Yogurt: -49.7% (-5,300 tonnes)
- Whey: -14% (-2,500 tonnes)
- Butter: -4.3% (-600 tonnes), value down 37%
Yogurt posted the steepest percentage decline of the four, driven mainly by a 4,900-tonne drop in shipments to Ireland. Butter volumes fell more modestly, but export value collapsed 37% as average prices stayed weak through the quarter.
Belgium (-1,800 tonnes) and Italy (-1,000 tonnes) accounted for the biggest butter declines. Gains to the Netherlands (+700 tonnes), Libya (+500 tonnes), and several other markets partly offset the drop.
UK Dairy Imports Fell as a New Trade Deal Looms
UK dairy imports fell 2% to 342,500 tonnes, a smaller decline than the export side. EU imports dropped 9,100 tonnes (2.7%). Ireland accounted for the single biggest decline, down 17,500 tonnes. Gains elsewhere in the bloc partly offset it. Non-EU imports rose 39.8% (2,100 tonnes), led by Switzerland, New Zealand, and Norway.
Cheese and curd imports rose 3.6% (4,300 tonnes) even as UK cheese exports hit a record, reflecting continued domestic demand for varieties not produced at home.
AHDB flagged one opportunity ahead: a newly agreed trade deal between the UK and Switzerland is expected to improve access for selected dairy products. That could give UK exporters a further boost, the review noted.
