Recent figures published by the EU milk market observatory show that Irish cheese exports in volume terms were just under 200,000t for 2015.

While cheese exports were relatively similar to 2014 levels, there was a major increase in the quantities of butter exported from Ireland. Volumes of Irish butter exports jumped by more than a quarter in 2015 reflecting the better market prices for the dairy commodity and strong demand from the US.

The figures allow us to analyse Irish dairy exports for last year in volume terms, which can be a better guide to understanding shifts in global trade dynamics.

In terms of volume, the largest dairy commodity exported by Ireland in 2015 was cheese with just under 200,000t leaving the island. The majority of this cheese (80%) is sold into EU markets with the remaining 20%, or approximately 40,000 tonnes, destined for international markets.

Not only does Ireland rely on the EU market for the majority of its cheese exports but it actually relies almost solely on a single market within the EU block – the UK. In 2015, the UK accounted for almost 60% or more than 115,000t of Irish cheese with the next largest market, Germany, accounting for less than 5% or 9,180t of Irish cheese exports.

The reliance on a single market is less pronounced for other exports of dairy commodities.

Butter is the second largest exported commodity by volume with more than 130,000t shipped last year. Of this, almost 84% was sent to EU markets and 16% destined for international markets. However, within the EU marketplace, there is far greater diversity in terms of the main countries that import Irish butter. The UK and Germany are neck and neck with both markets accounting for 27% of the volumes of Irish butter exported last year.

The US was the fifth largest market accounting for almost 7% of butter exports, which highlights the strength of the Kerrygold brand there.

Milk powders

While milk powder exports are smaller in overall terms than the more traditional dairy commodities, they are two products that Irish processors will likely increase production of in the years ahead (see agribusiness analysis on page 24).

For 2015, SMP exports were just under 55,000t, while WMP exports came in just below 32,000t. In contrast to butter and cheese, exports of both SMP and WMP are far less weighted towards the EU market with a greater share of exports heading to international destinations.

Just 39% of SMP exports went to the EU in 2015, while only 43% of WMP exports from Ireland stayed in the single market.

The rest was all exported to international markets. Unsurprisingly, the UK is the largest market for both SMP and WMP, but its share of the total exports of each is much smaller at 16% and 17%, respectively.

For SMP, China is the third largest accounting for just under 10%. Two other international markets, Nigeria and the United Arab Emirates, are the fourth and fifth largest export destinations.

Nigeria is the third largest market for Irish WMP with almost 12% of exports.

After the Netherlands in fourth, the Caribbean island nation of Trinidad and Tobago is the fifth largest export market for Irish WMP, accounting for more than 8% of trade.