Executive Summary

Milk production figures throughout the major dairy exporting regions of New Zealand, the EU-27+UK, the U.S., Australia and Argentina were recently updated with values spanning through Dec ’21. Highlights from the updated figures include:

• Combined milk production within the major dairy exporting regions declined 1.3% on a YOY basis throughout Dec ’21, finishing below previous year levels for the fourth consecutive month. The YOY decline in combined milk production volumes was the largest experienced throughout the past five years.
• Dec ’21 YOY declines in milk production on a percentage basis were led by New Zealand, followed by the EU-27+UK, Australia and the U.S. Argentine milk production volumes remained above previous year levels throughout Dec ’21.
• Milk production growth throughout the U.S. finished slightly below previous year levels throughout Dec ’21 but remained above growth experienced throughout the other major dairy exporting regions for the 17^th consecutive month.

Additional Report Details

Combined milk production within the major dairy exporting regions of New Zealand, the EU-27+UK, the U.S., Australia and Argentina declined seasonally to a four month low level throughout Dec ’21 while finishing 1.3% below previous year levels. The aforementioned regions combined to account for 90% of global butter, cheese, whole milk powder and nonfat dry milk export volumes throughout 2021.

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 26 months through Aug ’21. More recently, combined milk production volumes have finished below previous year levels over four consecutive months through Dec ’21. The Dec ’21 YOY decline in combined milk production volumes was the largest experienced throughout the past five years.

Dec ’21 YOY declines in milk production on a percentage basis were led by New Zealand (-5.0%), followed by the EU-27+UK (-1.7%), Australia (-1.2%) and the U.S. (-0.1%). Dec ’21 milk production volumes remained higher on a YOY basis throughout Argentina (+3.4%). The EU-27+UK produces significantly more milk than the other dairy exporting regions, accounting for nearly half of the combined production within the five exporting regions throughout Dec ’21.

Excluding the U.S., milk production within the major dairy exporting regions declined by 1.9% on a YOY basis throughout the month of December, remaining below the growth rate exhibited within the U.S. for the 17^th consecutive month.