Global milk supplies rising

Published 5 April 17

Milk production from the five main exporting regions rose again in February, continuing the month-on-month growth seen since October 2016. Combined production in February was just under 22 billion litres, equivalent to around 279 billion litres on an annual equivalent basis*.

The US continues to be the main contributor to the rise in milk supplies, although New Zealand (NZ) turned a corner in February, recording growth for the first time since it moved into its peak production period in September of last year. Production in the EU-28 has been steadily rising in recent months and is therefore not offsetting the growth seen elsewhere as much as it was.

Global Supply Update

The outlooks for 2017 anticipate combined growth of 1% from the five key regions, equivalent to a further 3.5bn litres of milk over the year. Again, the US will supply most to this additional milk as herds and yields are expected to rise, leading to a further 2.2% uplift in production. The EU-28 should start to see deliveries rising the second half of 2017, resulting in net growth of 0.5% for the year.

 

*AHDB applies a seasonal adjustment to milk production for the big five exporting regions (EU, NZ, Australia, US and Argentina) to create a daily equivalent. This allows figures to be compared month-on-month, allowing trends to be spotted earlier than the more traditional rolling 12-month totals.

Production figures for Argentina (Jan-17 and Feb-17) and the EU-28 (Feb-17) are estimated as actual volumes are not yet available.