Global Milk Production Update – Sep ’19
Combined milk production within the major dairy exporting regions of New Zealand, the EU-28, the U.S., Australia and Argentina finished slightly higher on a YOY basis during Jul ’19, increasing by 0.1%. The aforementioned regions combined to account for nearly 90% of global butter, cheese, whole milk powder and nonfat dry milk export volumes throughout 2018. 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 had finished flat or lower on a YOY basis over eight consecutive months through Jun ’19, prior to finishing slightly higher on a YOY basis throughout Jul ’19. 12-month rolling average production growth rates declined to a two year low level throughout Jul ’19, however. Jul ’19 YOY increases in milk production on a percentage basis were led by New Zealand (+4.6%), followed by the EU-28 (+0.5%), while milk production volumes finished flat on a YOY basis throughout both the U.S. and Argentina. The increases in milk production volumes more than offset an 8.4% YOY decline in Australian milk production volumes experienced throughout the month. The EU-28 produces significantly more milk than the other dairy exporting regions, accounting for over half of the combined production within the five exporting regions during Jul ’19.