Dairy Market Blog – Monday 17th July 2017
World production eases in May
Milk output from the five main global exporting regions fell back dramatically in May, mainly as a result of lower EU output. French milk production was down 2.9% in May, German output back 2.45% for May, Dutch production was back 0.4% for the month of June, and down 0.52% for the first half of 2017. This was less of a decrease than expected in light of the herd reduction scheme, but the scheme did allow farmers to outsource the rearing of younger stock, which may have allowed many farmers to actually maintain production. Of course, it remains to be seen whether the scheme has reached its aims regarding the nitrates/phosphates limits, and whether it will be deemed sufficient effort by the EU Commission.
Danish milk collections were down by 0.7% in May, and a further 2.8% in June.
In positive territory were Italy (+), the UK (+0.58% for June)
Elsewhere, NZ production was back 0.7% for May, -1.1% for the season to May, and US growth was slightly more modest than previous or predicted. (+1.8% for May).