EU-28 Milk Production Update – Aug ’16
Executive Summary
EU-28 milk production figures provided by Eurostat were recently updated with values spanning through Jun ’16. Highlights from the updated report include:
• EU-28 milk production declined on a YOY basis for the first time in 15 months during Jun ’16, finishing down 1.6%.
• Milk production declined on a YOY basis most significantly within the United Kingdom, followed by France and Germany. Overall, production declined within 17 of the 28 member states throughout the month of June.
• Continued YOY increases in slaughter rates likely contributed to the decline in milk production experienced during Jun ’16. May ’16 EU-28 bovine slaughter rates increased on a YOY basis for the tenth time in the past 12 months, finishing up 8.6%.
Additional Report Details
According to Eurostat, Jun ’16 EU-28 milk production declined 3.7% MOM on a daily average basis while finishing 1.6% lower YOY. The YOY decline in production volumes was the first experienced in the past 15 months.
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 Jun ’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 Jun ’16 were led by the United Kingdom (-96,000 MT), followed by France (-71,190 MT) and Germany (-40,310 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 Jun ’16. YOY declines in production on a percentage basis were led by Lithuania (-9.0%), followed by Slovakia (-8.7%), Belgium (-8.0%) and the United Kingdom (-7.2%) while increases on a percentage basis were most significant in Cyprus (+23.3%), the Czech Republic (+8.3%), Luxembourg (+6.9%) and the Netherlands (+4.8%). Production within the Netherlands has increased on a YOY basis for 15 consecutive months through Jun ’16.
Seven of the ten top milk producing Member States experienced YOY declines in milk production during Jun ’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, 17 of the 28 member states experienced YOY declines in production volumes during Jun ’16.
May ’16 EU-28 beef & dairy cow slaughter increased on a YOY basis for the fourth consecutive month, finishing up 8.6%. The YOY increase in slaughter rates was the largest experienced in the past 14 months on a percentage basis. YOY increases in beef & dairy cow slaughter were led by France, followed by the United Kingdom, Germany, Italy and the Netherlands.
EU-28 bovine slaughter has finished higher on a YOY basis over ten of the past 12 months through May ’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.
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 Jun ’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 Jun ’16 were led by the United Kingdom (-96,000 MT), followed by France (-71,190 MT) and Germany (-40,310 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 Jun ’16. YOY declines in production on a percentage basis were led by Lithuania (-9.0%), followed by Slovakia (-8.7%), Belgium (-8.0%) and the United Kingdom (-7.2%) while increases on a percentage basis were most significant in Cyprus (+23.3%), the Czech Republic (+8.3%), Luxembourg (+6.9%) and the Netherlands (+4.8%). Production within the Netherlands has increased on a YOY basis for 15 consecutive months through Jun ’16.
Seven of the ten top milk producing Member States experienced YOY declines in milk production during Jun ’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, 17 of the 28 member states experienced YOY declines in production volumes during Jun ’16.
May ’16 EU-28 beef & dairy cow slaughter increased on a YOY basis for the fourth consecutive month, finishing up 8.6%. The YOY increase in slaughter rates was the largest experienced in the past 14 months on a percentage basis. YOY increases in beef & dairy cow slaughter were led by France, followed by the United Kingdom, Germany, Italy and the Netherlands.
EU-28 bovine slaughter has finished higher on a YOY basis over ten of the past 12 months through May ’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.