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EU predicts growth recovery in 2022
Wednesday, 13 October 2021
By Patty Clayton
The latest EU short term outlook has revised down its milk production outlook for 2021 but is forecasting an improved picture for 2022. Although pasture conditions were good for many producing regions through the summer of 2021, collections in France, Germany and the Netherlands are expected to finish the year below 2020 levels. This will in part be offset by good growth elsewhere leaving overall milk production for the year up by 0.3%. This compares to its July forecast of +0.8% growth.
For 2022, milk production is expected to recovery on the back of higher yields, despite a further decline in the EU dairy herd.
With limited growth in milk supplies, but good demand for cheese in domestic and export markets, cheese production is forecast to increase by 1% in the year. This is at the expense of butter and SMP production, which were down by 1.3% and 4% respectively in the period Jan-July. Improved prices on the back of low stocks and recovering foodservice demand are expected to boost production in the final months of the year.
For whole milk powder, production fell in the first 7 months of 2021 relative to previous year level, but this was mostly down to high production in 2020. Higher domestic demand in 2022, on the back of recovering foodservice markets is expected to lead to some production growth.
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