Global Milk Production Update – Dec ’20
Combined milk production within the major dairy exporting regions of New Zealand, the EU-28, the U.S., Australia and Argentina finished 1.5% higher on a YOY basis during Oct ’20, reaching a record high monthly level. The aforementioned regions combined to account for over 90% of global butter, cheese, whole milk powder and nonfat dry milk export volumes throughout 2019. Combined milk production growth rates experienced throughout the major dairy exporting regions decelerated over much of 2018 but remained positive until Nov ’18, when production volumes declined on a YOY basis for the first time in the past 22 months. Combined milk production volumes finished largely flat or lower on a YOY basis over eight consecutive months through Jul ’19, prior to finishing higher throughout each of the past 16 months through Oct ’20. Oct ’20 YOY increases in milk production on a percentage basis were led by Argentina (+5.7%), followed by the U.S. (+2.3%), the EU-28 (+1.0%) and New Zealand (+0.8%). Production declined slightly on a YOY basis throughout Australia (-0.3%). The EU-28 produces significantly more milk than the other dairy exporting regions, accounting for just under half of the combined production within the five exporting regions during Oct ’20. Excluding the U.S., milk production within the major dairy exporting regions increased by 1.1% on a YOY basis throughout the month of October, finishing below the growth rate exhibited within the U.S. for the third consecutive month.