EU-28 Milk Production Update – Jan ’18
EU-28 Milk Production Update – Jan ’18
Executive Summary
EU-28 milk production figures provided by Eurostat were recently updated with values spanning through Nov ’17. Highlights from the updated report include:
EU-28 milk production has finished higher on a YOY basis over nine consecutive months through Nov ’17. The Nov ’17 YOY increase in milk production was the largest experienced throughout the past three and a half years on a percentage basis. The YOY increase in EU-28 milk production volumes was amplified by the European Commission’s €150 million voluntary milk reduction scheme which took place over the fourth quarter of 2016. The voluntary milk reduction scheme was estimated to result in a 1.1% YOY reduction in total EU-28 milk deliveries in addition to YOY declines experienced prior to the scheme coming into force.
Nov ’17 YOY increases in production on an absolute basis were led by Germany, followed by France, the United Kingdom and Italy. The aforementioned member states accounted for over half of the total EU-28 YOY increase in production volumes experienced throughout Nov ’17.
YOY gains in production on a percentage basis were led by Ireland (+16.1%), followed by Romania (+12.0%) and the Czech Republic (+11.8%), while declines in production on a percentage basis were most significant within Malta (-5.0%), Hungary (-3.3%) and Greece (-0.4%).
Each of the top ten milk producing member states experienced YOY gains in milk production during Nov ’17, as production within the top ten milk producing member states increased by a weighted average of 6.4% throughout the month. The top ten EU-28 milk producing member states accounted for over 85% of the total EU-28 milk production experienced throughout the month. Overall, 24 of the 28 member states experienced YOY increases in production volumes during Nov ’17.
Oct ’17 EU-28 beef & dairy cow slaughter remained lower on a YOY basis for the fourth time in the past five months when normalized for slaughter days, finishing down 0.5%. YOY declines in beef & dairy cow slaughter were most significant within Italy, followed by the United Kingdom and Germany.
EU-28 bovine slaughter increased 0.7% YOY throughout the ’15-’16 production season and finished up an additional 3.2% throughout the ’16-’17 production season. USDA expects the EU-28 dairy cow herd to be marginally lower throughout 2018 but recent culling is expected to have a positive impact on future per cow productivity as lower producing animals are culled.
- Nov ’17 EU-28 milk production declined seasonally to a ten month low but remained higher on a YOY basis for the ninth consecutive month, increasing by 6.1% to record seasonal high for the month of November. The YOY increase in EU-28 milk production was the largest experienced throughout the past three and a half years on a percentage basis.
- Nov ’17 YOY increases in milk production were led by Germany, followed by France, the United Kingdom and Italy. The aforementioned member states accounted for over half of the total YOY increase in EU-28 production volumes experienced during Nov ’17. Production gains were widespread across each of the top ten EU-28 milk producing member states throughout the month.
- EU-28 bovine slaughter rates declined on a YOY basis for the fourth time in the past five months during Oct ’17 when normalized for slaughter days, finishing down 0.5%. YOY declines in beef & dairy cow slaughter were most significant within Italy, followed by the United Kingdom and Germany.
EU-28 milk production has finished higher on a YOY basis over nine consecutive months through Nov ’17. The Nov ’17 YOY increase in milk production was the largest experienced throughout the past three and a half years on a percentage basis. The YOY increase in EU-28 milk production volumes was amplified by the European Commission’s €150 million voluntary milk reduction scheme which took place over the fourth quarter of 2016. The voluntary milk reduction scheme was estimated to result in a 1.1% YOY reduction in total EU-28 milk deliveries in addition to YOY declines experienced prior to the scheme coming into force.
Nov ’17 YOY increases in production on an absolute basis were led by Germany, followed by France, the United Kingdom and Italy. The aforementioned member states accounted for over half of the total EU-28 YOY increase in production volumes experienced throughout Nov ’17.
YOY gains in production on a percentage basis were led by Ireland (+16.1%), followed by Romania (+12.0%) and the Czech Republic (+11.8%), while declines in production on a percentage basis were most significant within Malta (-5.0%), Hungary (-3.3%) and Greece (-0.4%).
Each of the top ten milk producing member states experienced YOY gains in milk production during Nov ’17, as production within the top ten milk producing member states increased by a weighted average of 6.4% throughout the month. The top ten EU-28 milk producing member states accounted for over 85% of the total EU-28 milk production experienced throughout the month. Overall, 24 of the 28 member states experienced YOY increases in production volumes during Nov ’17.
Oct ’17 EU-28 beef & dairy cow slaughter remained lower on a YOY basis for the fourth time in the past five months when normalized for slaughter days, finishing down 0.5%. YOY declines in beef & dairy cow slaughter were most significant within Italy, followed by the United Kingdom and Germany.
EU-28 bovine slaughter increased 0.7% YOY throughout the ’15-’16 production season and finished up an additional 3.2% throughout the ’16-’17 production season. USDA expects the EU-28 dairy cow herd to be marginally lower throughout 2018 but recent culling is expected to have a positive impact on future per cow productivity as lower producing animals are culled.