Global Milk Production Increases Amid Strong European and American Output

In March, global milk production experienced noticeable growth, with several countries posting significant year-on-year increases. Germany led the way in Europe with a 7% rise in milk collections, setting a new monthly record. France also reported a 5% increase, although weekly data indicated a potential slowdown in growth. The Netherlands experienced a 6.1% rise, and Poland saw a 3.2% increase in milk supply. In contrast, Ireland's production fell by 0.7% compared to the same period last year, which had been particularly strong.

Outside Europe, the United States reported a 2.3% increase in milk supply for March. In New Zealand, favorable weather and strong milk prices contributed to continued high output levels. Australia also demonstrated solid growth, though producers are cautious due to elevated costs for feed, fuel, and other farm inputs. In South America, Argentina benefited from improved weather conditions, leading to increased milk collections.

China's dairy sector continued to grow, with official statistics indicating a 3.4% rise in milk supply during the first quarter of the year. This expansion comes despite the suggestion from Ornua that global milk supply growth might be approaching its peak. However, elevated global milk volumes are expected to persist longer than initially anticipated.

In Europe, strong export demand and steady retail sales have supported dairy commodity prices, even in the face of escalating geopolitical tensions. The report highlights that, while production levels remain high, the dynamics in the global dairy market are beginning to shift.