EU-28 Milk Production Update – Oct ’20
Executive Summary
EU-28 milk production figures provided by Eurostat were recently updated with values spanning through Aug ’20. Highlights from the updated report include:
The Aug ’20 YOY increase in EU-28 milk production volumes was the 18th experienced throughout the past 19 months. EU-28 milk production volumes declined on a YOY basis for the first time in 16 months throughout May ’20 as warm and dry conditions adversely impacted pastures, particularly throughout Eastern Europe. Weather conditions improved throughout the months of June and July however extreme heat returned throughout the month of August. More recently, autumn weather conditions have returned to favorable levels for milk production.
Aug ’20 YOY increases in production on an absolute basis were led by Ireland, followed by Poland, while YOY declines in production on an absolute basis were led by Germany, France and the Netherlands.
YOY increases in production on a percentage basis were led by Greece (+20.6%), followed by Cyprus (+17.7%) and Luxembourg (+4.7%), while declines in production on a percentage basis were most significant within Lithuania (-1.8%) and the Netherlands (-1.5%).
Only four of the top ten milk producing member states experienced YOY increases in milk production during Aug ’20, resulting in production within the top ten milk producing member states declining by a weighted average of 0.1% 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. Production outside of the top ten milk producing member states increased by 2.8%, more than offsetting the slight decline in production experienced throughout the top ten milk producing member states. Overall, 19 of the 28 member states experienced YOY increases in production volumes during Aug ’20.
EU-28 beef & dairy cow slaughter finished lower on a YOY basis for the fifth time in the past six months during Jul ’20 when normalizing for slaughter days, declining by 1.5%. YOY declines in beef & dairy cow slaughter were most significant throughout Germany, followed by Italy and Spain. Significant declines in beef & dairy cow slaughter rates experienced throughout the months of April and May were likely amplified by dislocations in meat processing caused by COVID-19.
’19-’20 annual EU-28 bovine slaughter declined on a YOY basis for the first time in the past six years, finishing down 1.8% and reaching a four year low level. USDA expects the EU-28 dairy cow herd to decline 1.2% throughout the 2020 calendar year, due to feed shortages stemming from the recent droughts but noted additional culling rates, coupled with improved genetics, are expected to have a positive impact on future per cow productivity as lower producing animals are culled.
- Aug ’20 EU-28 milk production finished 0.3% higher on a YOY basis throughout Aug ’20, reaching a record high seasonal level. The YOY increase in EU-28 milk production volumes was the 18th experienced throughout the past 19 months.
- Aug ’20 YOY increases in milk production were led by Ireland, followed by Poland, while YOY declines in milk production were led by Germany, France and the Netherlands. Overall, 19 of the 28 member states experienced YOY increases in milk production throughout the month although just four of the top ten milk producing member states experienced YOY increases in production.
- EU-28 beef & dairy cow slaughter rates finished lower on a YOY basis for the fifth time in the past six months during Jul ’20 when normalizing for slaughter days, declining by 1.5%.
The Aug ’20 YOY increase in EU-28 milk production volumes was the 18th experienced throughout the past 19 months. EU-28 milk production volumes declined on a YOY basis for the first time in 16 months throughout May ’20 as warm and dry conditions adversely impacted pastures, particularly throughout Eastern Europe. Weather conditions improved throughout the months of June and July however extreme heat returned throughout the month of August. More recently, autumn weather conditions have returned to favorable levels for milk production.
Aug ’20 YOY increases in production on an absolute basis were led by Ireland, followed by Poland, while YOY declines in production on an absolute basis were led by Germany, France and the Netherlands.
YOY increases in production on a percentage basis were led by Greece (+20.6%), followed by Cyprus (+17.7%) and Luxembourg (+4.7%), while declines in production on a percentage basis were most significant within Lithuania (-1.8%) and the Netherlands (-1.5%).
Only four of the top ten milk producing member states experienced YOY increases in milk production during Aug ’20, resulting in production within the top ten milk producing member states declining by a weighted average of 0.1% 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. Production outside of the top ten milk producing member states increased by 2.8%, more than offsetting the slight decline in production experienced throughout the top ten milk producing member states. Overall, 19 of the 28 member states experienced YOY increases in production volumes during Aug ’20.
EU-28 beef & dairy cow slaughter finished lower on a YOY basis for the fifth time in the past six months during Jul ’20 when normalizing for slaughter days, declining by 1.5%. YOY declines in beef & dairy cow slaughter were most significant throughout Germany, followed by Italy and Spain. Significant declines in beef & dairy cow slaughter rates experienced throughout the months of April and May were likely amplified by dislocations in meat processing caused by COVID-19.
’19-’20 annual EU-28 bovine slaughter declined on a YOY basis for the first time in the past six years, finishing down 1.8% and reaching a four year low level. USDA expects the EU-28 dairy cow herd to decline 1.2% throughout the 2020 calendar year, due to feed shortages stemming from the recent droughts but noted additional culling rates, coupled with improved genetics, are expected to have a positive impact on future per cow productivity as lower producing animals are culled.