Milk supplies are rising, especially EU output – however, the comparisons are somewhat distorted by the reduced deliveries in the last quarter of 2016.
The Netherlands – whose herd reduction limited 2017 production somewhat – was the only dynamic EU dairy country to register a decrease. Milk collection were down 0.26% in December, and the annual production was back 0.2%.
December supplies in Germany are estimated by FCStone International to be up 5.2% (after a 6.4% increase for November), while French output is believed to be up 2.6% up for December (5.4% up for November).
December 17 UK production is estimated at 3.5% up on December 2016.
Winter Olympic games boost already fast rising Korean dairy demand
Korea’s Winter Olympic Games from 9th to 25th February will boost demand for dairy products with an influx of visitors. Already in 2017, dairy imports for the January to November 2017 period have increased by over 20% to just over 254,000t.
The most significant increases were in cheese (up 17%), whey powder (up 12%) and SMP (up 24%). The top three sources of those imports were the US (over 71,000t of products, a 32% increase year on year), the Netherlands (31,500t up 26%) and New Zealand with just under 27,800t.
Fresh cheese imports increased 16% to 77,800 tonnes, while hard and semi-hard cheeses, which are gaining in popularity, went up by 22%, led by cheddar (an interesting fact, in light of the potential implications of Brexit for our own cheddar marketing).
Commentators from Agra Informa add: “The Olympics may spur a fitness kick among health-conscious Koreans, and if so whey powders aimed at this market is a trend to watch.” The graph below shows that they imported 63,500t of the stuff already last year!