Executive Summary EU-28 milk production figures provided by Eurostat were recently updated with values spanning through Jun ’18. Highlights from the updated report include:

• Jun ’18 EU-28 milk production finished higher on a YOY basis for the 16^th consecutive month, increasing by 1.3%. The YOY increase in EU-28 milk production was the smallest experienced throughout the past three months, however, as hot weather conditions have reduced pasture growth throughout much of Northern Europe.
• Jun ’18 YOY increases in milk production were led by Germany, followed by Italy. Germany and Italy combined to account for nearly two thirds of the total YOY increase in EU-28 production volumes experienced throughout the month. Overall, 18 of the 28 member states experienced YOY increases in production volumes during Jun ’18.
• EU-28 beef & dairy cow slaughter rates finished lower on a YOY basis for the first time in the past eight months during May ’18 when normalized for slaughter days, declining by 1.6%. YOY declines in slaughter rates were most significant within Germany, followed by France and Greece.

Additional Report Details According to Eurostat, Jun ’18 EU-28 milk production volumes declined seasonally from the record high levels experienced throughout the previous month but remained 1.3% higher on a YOY basis. EU-28 milk production has finished higher on a YOY basis over 16 consecutive months through Jun ’18. Production volumes for Spain and Sweden are not yet available and have been estimated based on previous month YOY changes in production. Spain and Sweden have combined to account for less than seven percent of total EU-28 production volumes over the previous 12 months. The Jun ’18 YOY increase in milk production was the smallest experienced throughout the past three months as recently experienced hot weather conditions have reduced pasture growth throughout much of Northern Europe. Pasture conditions within the United Kingdom, Ireland, France and several Baltic countries were the worst experienced in over the decade as of the end of Jul ’18 according to the European Commission. Jun ’18 YOY increases in production on an absolute basis were led by Germany, followed by Italy. Germany and Italy combined to account for nearly two thirds of the total EU-28 YOY increase in production volumes experienced throughout Jun ’18. YOY declines in production on an absolute basis were led by the Netherlands, followed by Lithuania. YOY gains in production on a percentage basis were led by Luxembourg (+7.7%), followed by Italy (+5.7%) and Estonia (+5.6%), while declines in production on a percentage basis were most significant within Croatia (-7.7%), followed by Latvia (-7.2%) and Greece (-6.3%). Nine of the top ten milk producing member states experienced YOY gains in milk production during Jun ’18, as production within the top ten milk producing member states increased by a weighted average of 1.7% throughout the month. The top ten EU-28 milk producing member states accounted for over 85% of the total EU-28 milk production experienced throughout the month. Overall, 18 of the 28 member states experienced YOY increases in production volumes during Jun ’18. May ’18 EU-28 beef & dairy cow slaughter finished lower on a YOY basis for the first time in the past eight months when normalized for slaughter days, declining by 1.6%. YOY declines in beef & dairy cow slaughter were most significant within Germany, followed by France and Greece. EU-28 bovine slaughter increased 3.0% YOY throughout the ’16-’17 production season and finished up an additional 0.2% throughout the ’17-’18 production season. USDA expects the EU-28 dairy cow herd to be marginally lower throughout 2018 but recent culling is expected to have a positive impact on future per cow productivity as lower producing animals are culled.