Total UK dairy import values showed a modest gain last year, which, set against a heavy drop in exports, pushed up the net dairy trade deficit by more than 22%. Import values from the EU went up 2.4%, against a 3.3% drop in third country imports. "There is a risk of a certain amount of double counting in EU imports, since they will be counted on each leg of their journey within the EU," cautioned PTF dairy consultant Mike Bessey. But the loss of third country business in markets such as Russia, which at one time took huge quantities of butter, is a contributing factor in the 23.6% drop in the value of third country exports. PTF director general Clare Cheney pointed out: "Despite a general decline in export markets, there are some bright spots. "Of course the volumes are small, but the value is high." But as Cheney agrees, niche markets will not save mainstream producers from a bleak trading environment. In volume terms, surprisingly, total dairy imports showed a 5.2% total drop. Given the wide range of products traded, this does not mean a lot in isolation. But, set against a 20% drop in third country export volumes, it points to a higher proportion of high value imports and a drop in the value of British exports. Nor can the strong pound be blamed for all these ills, since sterling has strengthened more against the euro ­ or rather, the euro and its linked support packages have weakened dramatically. {{PROVISIONS }}