EU-28 Milk Production Update – Feb ’17
Executive Summary
EU-28 milk production figures provided by Eurostat were recently updated with values spanning through Dec ’16. Highlights from the updated report include:
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 Dec ’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 4.0% higher YOY.
The European Commission’s €150 million voluntary milk reduction scheme, which was announced in July and came into force October 1st, likely contributed to the significant YOY declines in production experienced throughout recent months.The voluntary milk reduction scheme is expected to result in a 1.1% YOY reduction in total EU-28 milk deliveries in addition to YOY declines experienced throughout the four month period prior to the scheme coming into force.
YOY declines in production experienced throughout Dec ’16 were led by France (-139,770 MT), followed by Germany (-129,740 MT) and the United Kingdom (-61,100 MT). The aforementioned countries accounted for over 45% of the total monthly EU-28 milk production and over 85% of the YOY production declines experienced during Dec ’16. YOY declines in production on a percentage basis were led by Belgium (-9.5%), followed by Croatia (-6.5%) and France (-6.4%), while increases on a percentage basis were most significant within Cyprus (+18.5%), the Czech Republic (+6.6%) and Bulgaria (+6.1%). Production within the Netherlands declined on a YOY basis for the first time in 21 months during Dec ’16, finishing 0.1% below the previous year.
Eight of the top ten milk producing member states experienced YOY declines in milk production during Dec ’16, resulting in the top ten milk producing member states declining by a weighted average of 3.2% 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, 20 of the 28 member states experienced YOY declines in production volumes during Dec ’16.
Nov ’16 EU-28 beef & dairy cow slaughter increased on a YOY basis for the eighth consecutive month when normalized for slaughter days, finishing up 2.2%. YOY increases in beef & dairy cow slaughter were led by the United Kingdom, followed by Germany and France.
EU-28 bovine slaughter increased 0.7% YOY throughout the ’15-’16 production season and is up an additional 3.7% throughout the first two thirds of the ’16-’17 production season. 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.
- EU-28 milk production declined on a YOY basis for the seventh consecutive month during Dec ’16, finishing down 3.0%. The YOY decline in EU-28 milk production was the smallest experienced throughout the past four months, however.
- Milk production declined on a YOY basis most significantly within France, followed by Germany and the United Kingdom. Overall, 20 of the 28 member states experienced YOY declines in production volumes during Dec ’16.
- EU-28 bovine slaughter rates increased on a YOY basis for the eighth consecutive month during Nov ’16 when normalized for slaughter days, finishing up 2.2%. ’16-’17 YTD EU-28 bovine slaughter rates are up 3.7% YOY throughout the first two thirds of the 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 Dec ’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 4.0% higher YOY.
The European Commission’s €150 million voluntary milk reduction scheme, which was announced in July and came into force October 1st, likely contributed to the significant YOY declines in production experienced throughout recent months.The voluntary milk reduction scheme is expected to result in a 1.1% YOY reduction in total EU-28 milk deliveries in addition to YOY declines experienced throughout the four month period prior to the scheme coming into force.
YOY declines in production experienced throughout Dec ’16 were led by France (-139,770 MT), followed by Germany (-129,740 MT) and the United Kingdom (-61,100 MT). The aforementioned countries accounted for over 45% of the total monthly EU-28 milk production and over 85% of the YOY production declines experienced during Dec ’16. YOY declines in production on a percentage basis were led by Belgium (-9.5%), followed by Croatia (-6.5%) and France (-6.4%), while increases on a percentage basis were most significant within Cyprus (+18.5%), the Czech Republic (+6.6%) and Bulgaria (+6.1%). Production within the Netherlands declined on a YOY basis for the first time in 21 months during Dec ’16, finishing 0.1% below the previous year.
Eight of the top ten milk producing member states experienced YOY declines in milk production during Dec ’16, resulting in the top ten milk producing member states declining by a weighted average of 3.2% 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, 20 of the 28 member states experienced YOY declines in production volumes during Dec ’16.
Nov ’16 EU-28 beef & dairy cow slaughter increased on a YOY basis for the eighth consecutive month when normalized for slaughter days, finishing up 2.2%. YOY increases in beef & dairy cow slaughter were led by the United Kingdom, followed by Germany and France.
EU-28 bovine slaughter increased 0.7% YOY throughout the ’15-’16 production season and is up an additional 3.7% throughout the first two thirds of the ’16-’17 production season. 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.