After an extended period of unbalanced global dairy markets caused by a significant increase in EU-28 milk production following the expiration of the quota system, markets are expected to return to a more balanced situation heading into 2017. The main driver of strong supply, the EU-28, showed the first signs of contraction in milk supply during Jun ’16, as production finished 1.9% lower on a year-over-year basis. With negative margins continuing and incentives to reduce output on the horizon, EU-28 milk production is expected to tighten further over coming months. Please contact us if you would like to learn more about our dairy research products, including the current report that analyzes the potential EU-28 production cliff.