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EU Milk Production is Continuing to Slow Down
July 27, 2016

EU milk production is continuing to slow down, with the latest figures from the European Milk Market Observatory (MMO) showing that production between January and May is up 4.5% this year.

Comparing production in the first four months of the year to the first five, this is a decrease of 1.1%.

While the figures from the MMO show that milk production in the EU is starting to stall, production in Ireland, the Netherlands and Belgium continues to increase – albeit at a slower rate than it was increasing at this time last year.

In Ireland, milk volumes going to the processors and creameries in May increased by 4.9% with milk intake estimated at 918.0m litres.

Between January and May Irish milk production increased by 11.1% compared the corresponding period last year.

Meanwhile, in the Netherlands, milk production between January and May this year increased by 14.3% compared to the same period last year. In Belgium, milk production increased by approximately 7.5% for the January to May period.

UK milk production decreased between January and May this year compared to the corresponding period last year by 0.5%.

AHDB Dairy has attributed several factors to the dampened milk production, such as above-average rainfall, low spring temperatures and ongoing low farmgate prices.

Eu Milk Deliveries To Grow By More Than 1% In 2016 – Commission

Earlier this month, the European Commission forecast that EU milk deliveries could grow by more than 1% in 2016 (above 2m tonnes).

It says this is due to a strong increase in the first four months of the year (+5.5%), to be followed by a slowdown, likely to lead in the second half of the year to a milk collection below last year.

Data in the first quarter compares with a period of time last year when several Member States reduced milk collection to limit surplus levies because the quota system was still in place until April 1.

By contrast, the Commission says some downward supply adjustments are currently taking place. In addition, as every year, it says the weather will play a major role.

Source – Agriland



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