Stabilization on the Horizon: Trends and Changes in EU Milk Production
Source: The DairyNews
Recent developments indicate a potential stabilization in milk collections across the European Union, a key global dairy exporter. After six consecutive months of year-over-year declines, data from Eurostat and CLAL.it show only a marginal 0.1% drop in EU-27 milk collections for February, suggesting that the worst of the downturn may be behind us.
Sarina Sharp, an analyst with the Daily Dairy Report, highlighted the disparities in production across the region. Germany, the top milk producer in the EU, saw a slight decline of 0.3% in February, though recent weekly data indicates a recovery in March and April. Conversely, France experienced a 0.5% increase in production year-over-year, helped by milder weather conditions.
However, challenges remain, particularly in northern Europe where "extremely wet weather" significantly impacted milk yields, according to Sharp. The Netherlands and Ireland, notable contributors to the EU's milk output, reported decreases of 2.3% and a substantial 16.3%, respectively. In contrast, milk production is on the rise in Poland and showing signs of recovery in Southern Europe.
The distribution of dairy production is also shifting, with more milk being directed towards cheese production rather than dried products. According to USDA data, European cheese output rose by 3.9% early this year, while skim milk powder and butter production saw declines exceeding 6%.
This period has also been marked by widespread farmer protests over low milk prices and stringent Green Deal regulations. In response, the European Commission proposed amendments to the Common Agricultural Policy (CAP), aiming to simplify regulations and address farmers' concerns. These proposed changes, which include making some Green Deal requirements voluntary, received approval from the European Parliament and await formal adoption by the EU Council.
As the EU dairy sector navigates these regulatory adjustments and environmental challenges, the outlook for milk production appears cautiously optimistic, driven by potential improvements in market conditions and weather patterns.
However, challenges remain, particularly in northern Europe where "extremely wet weather" significantly impacted milk yields, according to Sharp. The Netherlands and Ireland, notable contributors to the EU's milk output, reported decreases of 2.3% and a substantial 16.3%, respectively. In contrast, milk production is on the rise in Poland and showing signs of recovery in Southern Europe.
The distribution of dairy production is also shifting, with more milk being directed towards cheese production rather than dried products. According to USDA data, European cheese output rose by 3.9% early this year, while skim milk powder and butter production saw declines exceeding 6%.
This period has also been marked by widespread farmer protests over low milk prices and stringent Green Deal regulations. In response, the European Commission proposed amendments to the Common Agricultural Policy (CAP), aiming to simplify regulations and address farmers' concerns. These proposed changes, which include making some Green Deal requirements voluntary, received approval from the European Parliament and await formal adoption by the EU Council.
As the EU dairy sector navigates these regulatory adjustments and environmental challenges, the outlook for milk production appears cautiously optimistic, driven by potential improvements in market conditions and weather patterns.
