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Milk Production Growth Slowing Globally as Market Rebalances

31 May 2016

GLOBAL - Ireland's milk output in April 2016 was down 4.1 per cent, according to the Central Statistics Office (CSO).

Irish Farmers' Association (IFA) National Dairy Committee Chairman Sean O’Leary reminded commentators that April 2015 supplies were boosted by some carry forward from the previous quota restricted month, but milk production growth is slowing down around the world.

“The reduction in the Irish April 2016 output also reflects the late and cold spring which saw poor grass grows, and many cows return indoors for at least part of the day.

"The bad spring was a factor in quite a number of Northern Europe’s regions, but affected most of all the grass-based farms in Ireland and parts of the UK. There is also little doubt that the fact that most European farmers are now producing at a significant loss is also starting to affect output growth,” Mr O’Leary said.

“Danish milk collections were up 8.9 per cent in March, but only by 2.7 per cent for April.

"French milk production was down 1.1 per cent in March and is predicted to be back 3.6 per cent for April, with slower growth also evident in Germany (+0.3 per cent only for week 18), where 16 per cent more cows were slaughtered in the first 17 weeks of the year,” he said.

“UK output has been falling since February, with deliveries down 2.3 per cent for the two weeks ending 21st May 2016,” he said.

“New Zealand is finishing their 2015/16 season with 3 per cent or so less milk produced than in 2014/15, and Australia is 1.1 per cent down for their season to April. Only the US output seems to be buoyed by low feed and labour costs, with USDA reporting 1.2 per cent increase in April output,” he said.

“Bearing in mind that spot milk and dairy prices, EU average quotes and international futures have all been firming – albeit timidly and from very low levels – it is fair to think that we are seeing the first signs that global supply and demand has slowly started to rebalance,” he concluded.

TheCattleSite News Desk



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