Global Milk Production Update – Feb ’20
Combined milk production within the major dairy exporting regions of New Zealand, the EU-28, the U.S., Australia and Argentina finished 0.9% higher on a YOY basis during Dec ’19, reaching a record high seasonal level. The aforementioned regions combined to account for nearly 90% of global butter, cheese, whole milk powder and nonfat dry milk export volumes throughout 2018. 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 had finished flat or lower on a YOY basis over eight consecutive months through Jun ’19, prior to finishing higher on a YOY basis throughout each of the past six months through Dec ’19. The Dec ’19 YOY increase in combined milk production was the largest experienced throughout the past 15 months on a percentage basis. Dec ’19 YOY increases in milk production on a percentage basis were led by Argentina (+4.0%), followed by the EU-28 (+1.2%) and the U.S. (+0.7%). New Zealand milk production volumes declined 0.5% on a YOY basis throughout Dec ’19 while milk production within Australia finished flat YOY. The EU-28 produces significantly more milk than the other dairy exporting regions, accounting for nearly half of the combined production within the five exporting regions during Dec ’19. Excluding the U.S., milk production within the major dairy exporting regions increased by 1.0% on a YOY basis throughout the month of December, finishing above the growth rate exhibited within the U.S. for the first time in the past four months.