Global Milk Production Update – Jul ’20
Combined milk production within the major dairy exporting regions of New Zealand, the EU-28, the U.S., Australia and Argentina finished 0.1% higher on a YOY basis during May ’20 but remained below the record high seasonal level experienced throughout May of 2018. 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 Jun ’19, prior to finishing higher throughout each of the past 11 months through May ’20. The May ’20 YOY increase in combined milk production was the smallest experienced throughout the 11 month period, however. May ’20 YOY increases in milk production on a percentage basis were led by Argentina (+10.9%), followed by Australia (+6.0%) and New Zealand (+4.3%). The increases in milk production experienced throughout Argentina, Australia and New Zealand more than offset YOY declines in production volumes experienced throughout the EU-28 (-0.2%) and the U.S. (-1.1%). The EU-28 produces significantly more milk than the other dairy exporting regions, accounting for over half of the combined production within the five exporting regions during May ’20. Excluding the U.S., milk production within the major dairy exporting regions increased by 0.8% on a YOY basis throughout the month of May, finishing above the growth rate exhibited within the U.S. for the first time in the past nine months.