EU and US lead global milk supply growth

Thursday, 15 October 2020

by Kat Jack

Milk production from the 6 key dairy producing regions* is currently running 1.7% ahead of last year, according to our latest global milk deliveries data. These regions together have produced 194bn litres of milk so far this year (January-August 2020), up 3bn litres from the same period in 2019.

All key regions except the UK have grown production year on year. This was led by the EU and US in volume terms. These are the highest-producing regions of the group, and each went up by a little over 1bn litres on the year. However, the fastest growing regions were Argentina (up 8.4%) and Australia (up 4.9%), albeit on the back of relatively poor performances in 2019. New Zealand has been relatively steady, but as peak production isn’t until October there is still time for this to develop.

The UK is the only one of these regions currently down on the year, although only marginally. This is partly due to a high production year in 2019, and partly due to farmers actively limiting their production through the spring peak in response to the impact of coronavirus on the markets. In contrast, the first wave of the pandemic hit when the southern hemisphere countries had seasonally low production, lessening the impact of reduced demand. As for the EU and US, it seems that farmers had a different reaction to the changing markets. Differences in government support may have played a part in this.


*Argentina, Australia, EU, UK, New Zealand, US

Katherine Jack

Analyst - Dairy

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