Milk output in EU and US now rising in response to higher milk prices
Global milk output has been increasing in earnest, estimated to be currently up 0.7% year on year.
In Europe, where supplies had been subdued in the most influential countries, the trend is changing in recent months and August supplies for EU 28 are estimated to be up 1.8%. For that month, Ireland’s output was up 11.1%, Denmark up 8.6%, Poland up 5% and Spain up 1.6%. An FCStone estimated figure for UK September output suggests a 2.7% increase (it was +2.4% for August). Even France and Germany are now seeing a recovery after months of languishing behind last year’s levels, with +0.5% and +1.5% increases in August output respectively.
The Netherlands, on the other hand, showed the impact of the phosphates-related herd reduction scheme, with an output decrease for August of around 2%, and a 30% increase in cow culls in the first half of 2017.
US August production continued on its upward trend at + 2.1%.
In New Zealand, the early part of the season has been marred by an overly wet spring. August supplies were back 1.5%, and this is after a decrease of over 1% for the 2016/17 season.