Global Milk Production Update – Jan ’21
Combined milk production within the major dairy exporting regions of New Zealand, the EU-28, the U.S., Australia and Argentina finished 1.5% higher on a YOY basis during Nov ’20, remaining at a record high seasonal 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 17 months through Nov ’20. Nov ’20 YOY increases in milk production on a percentage basis were led by Argentina (+7.2%), followed by the U.S. (+3.0%) and the EU-28 (+1.2%). Production finished flat on a YOY basis throughout Australia while declining on a YOY basis throughout New Zealand (-2.5%). 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 Nov ’20. Excluding the U.S., milk production within the major dairy exporting regions increased by 0.8% on a YOY basis throughout the month of November, finishing below the growth rate exhibited within the U.S. for the fourth consecutive month. More recent production figures for the month of December have been announced for Argentina. Milk production volumes finished 6.9% higher on a YOY basis throughout Dec ’20, finishing slightly below the Nov ’20 growth rate.