EU-28 Milk Production Update – Oct ’16
Executive Summary
EU-28 milk production figures provided by Eurostat were recently updated with values spanning through Aug ’16. Highlights from the updated report include:
• EU-28 milk production declined on a YOY basis for the third consecutive month during Aug ’16, finishing down 1.5%.
• YOY reductions in milk production were led by the United Kingdom, followed by Germany, France and Denmark. Overall, production declined within 18 of the 28 member states throughout the month of August.
• Production continued to decline throughout the EU-28 despite slaughter rates finishing lower for the first time in six months during Jul ’16, declining by 6.1%. The decline in slaughter rates was the largest experienced in over two and a half years on a percentage basis.
Additional Report Details
According to Eurostat, Aug ’16 EU-28 milk production continued to decline seasonally, finishing 3.2% lower MOM on a daily average basis, while also finishing lower on a YOY basis for the third consecutive month, declining by 1.5%.
EU-28 milk production declined on a YOY basis throughout the final months of the ’14-’15 production season as producers attempted to limit superlevy penalties for exceeding milk production quota levels but rebounded throughout the ’15-’16 production season in the post-quota environment. The Aug ’16 YOY decline in production was against record high levels experienced throughout the first year of post-quota production. Overall, ’15-’16 annual EU-28 milk production finished 3.9% higher YOY.
YOY declines in production experienced throughout Aug ’16 were led by the United Kingdom (-88,100 MT), followed by Germany (-48,550 MT), France (-38,980 MT) and Denmark (-26,370 MT). The aforementioned countries accounted for nearly half of the total monthly EU-28 milk production and the vast majority of the YOY production declines experienced during Aug ’16. YOY declines in production on a percentage basis were led by Bulgaria (-7.9%), followed by the United Kingdom (-7.1%) and Croatia (-6.8%) while increases on a percentage basis were most significant in Cyprus (+23.6%), the Czech Republic (+10.9%) and Malta (+9.4%).
Seven of the ten top milk producing Member States experienced YOY declines in milk production during Aug ’16, declining by a weighted average of 1.5% throughout the month. The top ten EU-28 milk producing Member States accounted for over 85% of the total EU-28 milk production throughout the month. Overall, 18 of the 28 member states experienced YOY declines in production volumes during Aug ’16.
Jul ’16 EU-28 beef & dairy cow slaughter declined on a YOY basis for the first time in six months, finishing down 6.1%. The YOY decline in EU-28 beef & dairy cow slaughter was the largest experienced in the past two and a half years on a percentage basis. YOY declines in beef & dairy cow slaughter were led by the United Kingdom, followed by Germany, France and Poland.
EU-28 bovine slaughter had finished higher on a YOY basis over ten of the past 12 months prior to the Jul ’16 decline. USDA expects the EU-28 dairy cow herd to be marginally lower throughout 2016 but recent culling is expected to have a positive impact on future per cow productivity as lower producing animals are culled. Total EU-28 beef & dairy cow slaughter finished 1.4% higher YOY throughout the ’15-’16 production season and remains up an additional 2.6% throughout the first third of the ’16-’17 production season, despite the most recent decline.
EU-28 milk production declined on a YOY basis throughout the final months of the ’14-’15 production season as producers attempted to limit superlevy penalties for exceeding milk production quota levels but rebounded throughout the ’15-’16 production season in the post-quota environment. The Aug ’16 YOY decline in production was against record high levels experienced throughout the first year of post-quota production. Overall, ’15-’16 annual EU-28 milk production finished 3.9% higher YOY.
YOY declines in production experienced throughout Aug ’16 were led by the United Kingdom (-88,100 MT), followed by Germany (-48,550 MT), France (-38,980 MT) and Denmark (-26,370 MT). The aforementioned countries accounted for nearly half of the total monthly EU-28 milk production and the vast majority of the YOY production declines experienced during Aug ’16. YOY declines in production on a percentage basis were led by Bulgaria (-7.9%), followed by the United Kingdom (-7.1%) and Croatia (-6.8%) while increases on a percentage basis were most significant in Cyprus (+23.6%), the Czech Republic (+10.9%) and Malta (+9.4%).
Seven of the ten top milk producing Member States experienced YOY declines in milk production during Aug ’16, declining by a weighted average of 1.5% throughout the month. The top ten EU-28 milk producing Member States accounted for over 85% of the total EU-28 milk production throughout the month. Overall, 18 of the 28 member states experienced YOY declines in production volumes during Aug ’16.
Jul ’16 EU-28 beef & dairy cow slaughter declined on a YOY basis for the first time in six months, finishing down 6.1%. The YOY decline in EU-28 beef & dairy cow slaughter was the largest experienced in the past two and a half years on a percentage basis. YOY declines in beef & dairy cow slaughter were led by the United Kingdom, followed by Germany, France and Poland.
EU-28 bovine slaughter had finished higher on a YOY basis over ten of the past 12 months prior to the Jul ’16 decline. USDA expects the EU-28 dairy cow herd to be marginally lower throughout 2016 but recent culling is expected to have a positive impact on future per cow productivity as lower producing animals are culled. Total EU-28 beef & dairy cow slaughter finished 1.4% higher YOY throughout the ’15-’16 production season and remains up an additional 2.6% throughout the first third of the ’16-’17 production season, despite the most recent decline.