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Global Milk Production Update – Oct ’14

  • October 15, 2014
  • by wbabler
Global milk production in major dairy exporting regions remains well above last year’s levels through Jul ’14. Combined milk production for New Zealand, the EU-28, the U.S. and Australia, which combined to account for over 90% of global butter, cheese, WMP and NFDM exports in 2013, has increased 4.6% YOY from Jan ’14 to Jul ’14. Milk Production - Major Dairy Exporters Additional production has resulted in a continued cumulative global supply build as global dairy demand has subdued. Weaker Chinese buying, coupled with the Russian ban on dairy imports from key suppliers, has contributed to the slowdown in global demand and, consequentially, the recent declines in international dairy prices. Other dairy importing nations are unlikely to have the capacity to assume the additional supply, which could result in a prolonged period of low international dairy prices. Combined milk production for New Zealand, the EU-28, the U.S. and Australia typically builds through August and September until it reaches its seasonal peak in October. Aug ’14 production figures have been reported for the U.S. and Australia, with production up 2.5% and 2.3% YOY, respectively, while Aug ’14 production figures for New Zealand and the EU-28 will be reported in the second half of October.
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