Global Milk Production Update – May ’20
Combined milk production within the major dairy exporting regions of New Zealand, the EU-28, the U.S., Australia and Argentina finished 1.4% higher on a YOY basis during Mar ’20, reaching a record high seasonal level for the ninth consecutive month. 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 had finished largely flat or lower on a YOY basis over eight consecutive months through Jun ’19, prior to finishing higher on a YOY basis throughout each of the past nine months through Mar ’20. The Mar ’20 YOY increase in combined milk production was the largest experienced throughout the 22 months on a percentage basis. Mar ’20 YOY increases in milk production on a percentage basis were led by Australia (+7.1%), followed by Argentina (+6.5%), the U.S. (+2.2%) and the EU-28 (+0.8%). New Zealand milk production volumes declined 1.9% on a YOY basis 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 Mar ’20. Excluding the U.S., milk production within the major dairy exporting regions increased by 1.0% on a YOY basis throughout the month of March, finishing below the growth rate exhibited within the U.S. for the seventh consecutive month.