Output growth expected to be relatively modest
The most recent EU short term outlook report published by the EU Commission shows EU milk supplies have grown more modestly, rather than fallen due to the drought. However, it is expected that fodder supplies for the winter will be particularly affected in Germany, Northern France and the Benelux. Ireland will most probably has similar problems, as will the UK. Milk supplies for August were estimated at +0.5%.
Consequently, the EU Commission has revised its projected production increase for 2018 from 1.4% to almost half, at 0.8%. For 2019, the continued impact of fodder shortages leads the Commission to estimate production growth at no more than 0.9%. For both years, the EU Commission expects to a very small downward adjustment in cow numbers.
Source: EU MMO