EU-28 Milk Production Update – Sep ’16
Executive Summary
EU-28 milk production figures provided by Eurostat were recently updated with values spanning through Jul ’16. Highlights from the updated report include:
• EU-28 milk production declined on a YOY basis for the second consecutive month during Jul ’16, finishing down 1.1%.
• Milk production declined on a YOY basis most significantly within the United Kingdom, followed by Italy, Poland and Germany. Overall, production declined within 17 of the 28 member states throughout the month of July.
• Continued YOY increases in slaughter rates likely contributed to the decline in milk production experienced during Jul ’16. Jun ’16 EU-28 bovine slaughter rates increased on a YOY basis for the fifth consecutive month, finishing up 2.4%.
Additional Report Details
According to Eurostat, Jul ’16 EU-28 milk production continued to decline seasonally, finishing 3.9% lower MOM on a daily average basis, while also finishing lower on a YOY basis for the second consecutive month, declining by 1.1%.
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 Jul ’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 Jul ’16 were led by the United Kingdom (-108,500 MT), followed by Italy (-37,350 MT), Poland (-27,150 MT) and Germany (-26,240 MT). The aforementioned countries accounted for over 40% of the total monthly EU-28 milk production and the vast majority of the YOY production declines experienced during Jul ’16. YOY declines in production on a percentage basis were led by the United Kingdom (-8.3%), followed by Slovakia (-7.0%), Belgium (-6.8%) and Croatia (-6.4%) while increases on a percentage basis were most significant in the Czech Republic (+9.6%), Luxembourg (+7.7%) and the Netherlands (+4.9%). Production within the Netherlands has increased on a YOY basis for 16 consecutive months through Jul ’16.
Six of the ten top milk producing Member States experienced YOY declines in milk production during Jul ’16, declining by a weighted average of 1.1% 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, 17 of the 28 member states experienced YOY declines in production volumes during Jul ’16.
Jun ’16 EU-28 beef & dairy cow slaughter increased on a YOY basis for the fifth consecutive month, finishing up 2.4%. YOY increases in beef & dairy cow slaughter were led by the United Kingdom, followed by Poland and Romania.
EU-28 bovine slaughter has finished higher on a YOY basis over ten of the past 12 months through Jun ’16. 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 1.3% higher YOY throughout the ’15-’16 production season and is up an additional 5.2% throughout the first quarter of the ’16-’17 production season.
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 Jul ’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 Jul ’16 were led by the United Kingdom (-108,500 MT), followed by Italy (-37,350 MT), Poland (-27,150 MT) and Germany (-26,240 MT). The aforementioned countries accounted for over 40% of the total monthly EU-28 milk production and the vast majority of the YOY production declines experienced during Jul ’16. YOY declines in production on a percentage basis were led by the United Kingdom (-8.3%), followed by Slovakia (-7.0%), Belgium (-6.8%) and Croatia (-6.4%) while increases on a percentage basis were most significant in the Czech Republic (+9.6%), Luxembourg (+7.7%) and the Netherlands (+4.9%). Production within the Netherlands has increased on a YOY basis for 16 consecutive months through Jul ’16.
Six of the ten top milk producing Member States experienced YOY declines in milk production during Jul ’16, declining by a weighted average of 1.1% 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, 17 of the 28 member states experienced YOY declines in production volumes during Jul ’16.
Jun ’16 EU-28 beef & dairy cow slaughter increased on a YOY basis for the fifth consecutive month, finishing up 2.4%. YOY increases in beef & dairy cow slaughter were led by the United Kingdom, followed by Poland and Romania.
EU-28 bovine slaughter has finished higher on a YOY basis over ten of the past 12 months through Jun ’16. 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 1.3% higher YOY throughout the ’15-’16 production season and is up an additional 5.2% throughout the first quarter of the ’16-’17 production season.