Global milk supplies forecast to grow

Wednesday, 11 December 2019

By Jennie Tanner

Global milk production is expected to grow by around 1% in 2020, according to the most recent forecasts from the five largest producing regions. This would bring milk production to 292.5 billion litres, 2.9 billion litres higher than the figure estimated for 2019 production.

This takes into account the expected reduction in growth for Australia. A recent USDA report estimates Australia’s production for the 2020 year to be lower than anticipated in September by the Australian government. Continued challenges of drought, fires and high costs of water and feed are hampering any recovery in Australia. The production forecast for New Zealand is flat as they are unlikely to surpass the last seasons’ record production.

Increased global demand for dairy products is expected to continue, with FAO predictions at 2.1% per annum for fresh products and 1.5% per annum for processed products. As such, global dairy product prices are expected to remain fairly firm for the first half of 2020, as the production increase is relatively small.

Visit Global milk deliveries for the latest production data and trends

Jennie Tanner

Analyst - Dairy & Livestock

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