• Milk production in the EU28 between January and June of this year is not showing the same growth, with total deliveries up by only 0.4% year-on-year. Declines in production in Germany, France and the Netherlands have mostly offset the growth seen elsewhere (Ireland, Poland, UK).
  • Product availability in EU markets has varied, impacted mostly by trade flows. Total available supplies of butter and cheese (12 months to May) are on a par with last year, while SMP supplies have been depleted by strong exports and a drop in production over the period. WMP supplies are up as export volumes fell over the year.
  • The lack of excess stocks of most dairy products, along with limited supply growth in key dairying nations, has helped to limit downward movements in wholesale prices. The exception is butter prices, which have been declining steadily since summer 2018 as demand from the food manufacturing sector has dropped.
  • Despite lower market returns, UK farmgate prices have remained in the region of 29ppl on average over the previous 12 months (Jul-Jun), slightly above the 5-year average of 27.5ppl.