Global Milk Production Update – Nov ’20
Combined milk production within the major dairy exporting regions of New Zealand, the EU-28, the U.S., Australia and Argentina finished 1.8% higher on a YOY basis during Sep ’20, reaching a record high monthly level. The aforementioned regions combined to account for over 90% of global butter, cheese, whole milk powder and nonfat dry milk export volumes throughout 2019. Combined milk production growth rates experienced throughout the major dairy exporting regions decelerated over much of 2018 but remained positive until Nov ’18, when production volumes declined on a YOY basis for the first time in the past 22 months. Combined milk production volumes finished largely flat or lower on a YOY basis over eight consecutive months through Jul ’19, prior to finishing higher throughout each of the past 15 months through Sep ’20. Sep ’20 YOY increases in milk production were widespread across the major dairy exporting regions and led on a percentage basis by Argentina (+3.6%), followed by the U.S. (+2.3%), New Zealand (+1.7%), the EU-28 (+1.4%) and Australia (+0.2%). The EU-28 produces significantly more milk than the other dairy exporting regions, accounting for just under half of the combined production within the five exporting regions during Sep ’20. Production gains have been widespread across the major dairy exporting regions for four consecutive months through Sep ’20, the longest consecutive streak experienced throughout the past five years. Excluding the U.S., milk production within the major dairy exporting regions increased by 1.5% on a YOY basis throughout the month of September, finishing below the growth rate exhibited within the U.S. for the third consecutive month.