EU milk starting to recover?

by | Oct 13, 2021 | Global, Prices

Estimated EU milk output rose 2.1% YOY in August, a 3-month high. This estimate is based on 15 member countries that have published August data on Eurostat, jointly accounting for 45% of average monthly EU-27 deliveries. Stronger output in Ireland (+5.4%), Poland (+0.9%) and Italy (+8.7%) offset a 1.5% YOY fall in Dutch output, following a 3.1% YOY contraction in July. In neighbouring Belgium, August milk production also fell, down 1% YOY.

According to the most recent data, French milk production fell 3% YOY in week 39 (ending 3 October 2021). German supply fell 2.3% YOY in week 38. In both key producing countries, the prior year comparables are now becoming easier to beat and will remain so through to the end of the calendar year.

A sign of improving supplies is weaker spot milk prices in Germany and the Netherlands. Earlier, sharp declines were reported due lower cow numbers and feed quality issues outweighing stellar pasture growth conditions in some key regions.

Across the channel, AHDB reports UK production fell 0.5% in September after a 0.2% contraction in August.